STAND. COM. REP. NO.590

Honolulu, Hawaii

, 2003

RE: S.B. No. 1630

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1630 entitled:

"A BILL FOR AN ACT RELATING TO NONPROFIT CORPORATIONS,"

begs leave to report as follows:

The purpose of this measure is to clarify that if a nonprofit corporation's officers or board of directors are elected by its members, the election may be conducted by mail in accordance with the corporation's bylaws or as provided by the board.

Testimony in support of this measure was submitted by a law firm representing hundreds of nonprofit corporations in Hawaii.

Your Committee finds that the Hawaii Nonprofit Corporations Act, Chapter 414D, Hawaii Revised Statutes (HRS), does not presently allow for election by mail unless a corporation's bylaws specifically permit mail balloting. Your Committee further finds that the amendments proposed by this measure were contained in Hawaii law (Chapter 415B, HRS) prior to the recodification under Chapter 414D, HRS, and believes that this provision to allow elections by mail if so determined by the board of directors, was inadvertently deleted and should be re-inserted into Chapter 414D, HRS.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1630 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

RON MENOR, Chair