STAND. COM. REP. NO. 1058

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 235

       H.D. 2

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 235, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO LIMITED LIABILITY COMPANIES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize the creation of and establish policies and procedures for the governance of sustainable business limited liability companies.

 

     Your Committee finds that under general business principles, the ultimate purpose of a business enterprise is to pursue profit.  Your Committee further finds that this purpose may prevent entrepreneurs and investors from achieving their own goals of establishing and investing in private enterprises that additionally serve social or environmental purposes.  Your Committee finds that several other states have responded to market demand for opportunities to pursue good corporate citizenship by authorizing the formation of business entities for reasons other than a pure profit motive.

 

Your Committee notes that the status as a sustainable business limited liability company authorized by this measure is a voluntary designation that preserves the private nature of businesses that choose it and relies on the governing structure of the company itself for enforcement.  Finally, your Committee finds that authorizing the formation of sustainable business limited liability companies in this State will help to diversify Hawaii's economy by attracting entrepreneurship and investment in innovative businesses and emerging industries.

 

     Your Committee has amended this measure by:

 

     (1)  Amending its language to comply with the requirements of the Uniform Limited Liability Company Act as codified by chapter 428, Hawaii Revised Statutes; and

 

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 235, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 235, H.D. 2, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

 

 

 

____________________________

ROSALYN H. BAKER, Chair