HI HB2458

Repeals provisions in Hawaii Revised Statutes Chapter 414D (Hawaii Nonprofit Corporations Act) that permit nonprofit corporations to convert to other legal entities.

Current law does not conform to the Revised Model Nonprofit Corporations Act and allows charitable assets to be converted for non-charitable purposes, creating potential for abuse.

Establishes that charitable assets must remain in a "lock box" devoted to charitable purposes, with dissolution allowing distribution only to other charities or use for charitable programs.

Prohibits conversion of nonprofit corporations to for-profit entities to ensure charitable assets remain perpetually dedicated to charitable uses.

Received support from the Department of the Attorney General.