HI HB19

Authorizes the creation of low-profit limited liability companies (L3Cs) in Hawaii, a new business entity type designed to accomplish charitable or educational purposes as defined under section 170(c)(2)(B) of the Internal Revenue Code.

Requires L3Cs to indicate their status in their articles of organization and certify that no significant purpose is income production or property appreciation, and that no purpose involves political or legislative activities.

Mandates that L3C operators, chief operating officers, directors, and managers are subject to fiduciary duties under Hawaii's uniform fiduciaries act (chapter 556).

Requires L3Cs to amend their articles of organization and cease identifying as L3Cs if they no longer satisfy the charitable or educational purpose requirements.

Modifies the Limited Liability Company naming requirements to mandate that L3Cs include "low-profit limited liability company" or "L3C" in their company name.