Bill Text: HI HB2136 | 2010 | Regular Session | Amended

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Bill Title: Distributions by Public Benefits Corporations

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-04-21 - (S) Act 043, 4/21/2010 (Gov. Msg. No. 501). [HB2136 Detail]

Download: Hawaii-2010-HB2136-Amended.html

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STAND. COM. REP. NO. 2699

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2136

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 2136 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to permit a nonprofit corporation to make financial distributions to its members or affiliates in a manner that is consistent with the purpose of the nonprofit corporation. 

 

     Your Committee received testimony in support of this measure from the Department of the Attorney General, The Queen's Health System, and Hawai‘i Pacific Health.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure will clarify state law to allow Hawaii nonprofit corporations that exist in whole or part to fund the activities of other nonprofit corporations to perform their intended function.  Your Committee notes that this measure is consistent with federal law governing nonprofit corporations and resolves an ambiguity that has heretofore existed between state and federal law in this area.  Your Committee further notes that the proponents of this measure have expressed their support for the amendments proposed by the Attorney General and adopted by your Committee. 

 

     Your Committee has amended this measure by:

 

     (1)  Adding a definition of "affiliate" to section 414D-14, Hawaii Revised Statutes, for the purpose of maintaining consistent organization throughout the relevant chapter;

 

     (2)  Adding a new section to correct a typographical error in section 414D-245, Hawaii Revised Statutes;

 

     (3)  Substituting the term "public benefits corporation" for "nonprofit corporation" in order to limit the scope of the measure to only nonprofit corporations that are operated for charitable, educational, or religious purposes, in conformity with federal law; and

 

     (4)  Making nonsubstantive technical changes for the purposes of clarity and accuracy.

 

     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. 2136, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2136, 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