STAND. COM. REP. NO. 500

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1349

       S.D. 1

 

 

 

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 S.B. No. 1349 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to authorize Hawaii nonprofit corporations to use electronic communications technologies to permit member actions by ballot, conduct voting, provide notice, and conduct meetings.

 

     Your Committee received testimony in support of this measure from the Commissioner of Securities for the Business Registration Division of the Department of Commerce and Consumer Affairs, the Department of the Attorney General, the University of Hawaii Professional Assembly, the Hawaii Alliance of Nonprofit Organizations, Aloha Society of Association Executives, and E Kupaku Ka Aina – The Hawaii Land Restoration Institute.

 

     Your Committee finds that this measure allows nonprofit corporations to take advantage of communications technologies that are readily accessible to organizations and individuals to improve efficiency in the conduct of business.  Your Committee further finds that, while the current law does not specifically prohibit the use of these technologies, this measure provides clarity and ensures that nonprofit corporations may be confident that their operations are in conformity with the law.  Finally, your Committee finds that this measure will provide members of nonprofit organizations, particularly those on neighbor islands, with greater opportunities for timely and meaningful participation in their organizations.  Your Committee notes that testimony received from all stakeholders, including the regulatory entities, expressed strong support for this measure.

 

     Your Committee has amended this measure by 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 S.B. No. 1349, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1349, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

ROSALYN H. BAKER, Chair