HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds and declares that the fee
 2 schedule for trustees of charitable trusts, while appropriate at
 3 the time of its inception many years ago, requires modification
 4 due to circumstances not previously anticipated.  The legislature
 5 recognizes the enormous responsibilities of trustees and holds
 6 the highest regard for individuals called upon to serve in such
 7 capacities.  Trustees of charitable trusts have traditionally
 8 served without compensation.  This Act limits commissions paid to
 9 trustees of charitable trusts by providing compensation rates
10 which are less than that allowed for trustees of private trusts
11 and it establishes a cap on such compensation.  The legislature
12 finds and declares that the salary of the chief justice of the
13 supreme court of the State of Hawaii represents a reasonable
14 standard in evaluating the compensation to be received by a
15 trustee of a charitable trust.  The adjusted fee schedule allows
16 compensation for trustees of charitable trusts, while increasing
17 the amount of trust income available for the beneficiaries of
18 charitable trusts.
19      SECTION 2.  Section 607-20, Hawaii Revised Statutes, is

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 1 amended to read as follows:
 2      "607-20  Charitable trusts, special provision.  (a)
 3 Notwithstanding any other provisions, in the case of an estate of
 4 a charitable trust, the commissions of the trustees shall be
 5 limited to the following schedule of percentages [on].  Upon all
 6 moneys received in the nature of revenue or income of the estate,
 7 such as rents, interests, and general profits:  ten per cent on
 8 the first $1,000; seven per cent on the next $4,000; five per
 9 cent on the next $100,000; three per cent on the next $100,000;
10 and two per cent on all over $205,000.  This schedule of
11 percentages shall be applied not [oftener] more often than once a
12 year.
13      (b)  Commissions shall not be allowed on income from the
14 sale of the fee interest under any leasehold property or on
15 income received from lessees for payment of real property taxes
16 on the leasehold property.
17        The total commissions payable to any trustee in any year
18 shall be reasonable and shall not be excessive.  In no event
19 shall the total commissions payable to an individual trustee in
20 any year exceed the annual salary of the chief justice of the
21 supreme court of the State.
22      (d)  The trustees shall also be entitled to just and

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 1 reasonable allowances for bookkeeping, clerical, and special
 2 services and expenses incidental thereto.
 3      (e)  This section shall apply as well to future accounting
 4 in existing estates as to new estates."
 5      SECTION 3.  Statutory material to be repealed is bracketed.
 6 New statutory material is underscored.
 7      SECTION 4.  This Act shall take effect upon its approval.
 9                           INTRODUCED BY: ________________________

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