STAND. COM. REP. NO. 1595

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1037
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1037 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     UNCLAIMED PROPERTY PROGRAM,"

begs leave to report as follows:

     The purpose of this bill is to provide emergency funding to
satisfy all claims filed with the Unclaimed Property Program
during fiscal year 1998-1999.

     Specifically, this bill appropriates an additional
$1,000,000 for fiscal year 1998-1999, for the payments of
judgments and claims under the Unclaimed Property Program as set
forth in chapter 523A, Hawaii Revised Statutes.

     Your Committee received testimony in support of this measure
from the Department of Budget and Finance.

     Your Committee finds that in Act 328, section 129, Session
Laws of Hawaii 1997, $1,760,751 was appropriated to the Unclaimed
Property Program for fiscal year 1998-1999.  The total
appropriation was expended as of the beginning of February, 1999,
with more than $500,000 in claims currently awaiting payment.
Section 523A-26, Hawaii Revised Statutes, requires that claims be

 
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acted upon within one hundred twenty days after its filing or the
claimant may bring an action in court.

     Your Committee heard testimony that fiscal year 1998-1999
has been a particularly unusual year with large claims being
filed.  Your Committee also finds that an emergency appropriation
of an additional $1,000,000 was also made for fiscal year 1997-
1998 in Act 14, Session Laws of Hawaii 1998.  Your Committee is
interested in returning abandoned property in its possession to
their rightful owners and recognizes that the increase in
professional finders over the years may be responsible for the
underestimated needs of the program.

     Your Committee has amended this measure by requiring the
Director of Finance to report to the legislature on the
disbursement of these emergency funds to claimants under the
Unclaimed Property Program.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1037, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 1037, S.D. 1, and
be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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