STAND. COM. REP. NO. 1696

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 484
                                     S.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs, to which was referred S.B. No.
484, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO PERSONAL PROPERTY,"

begs leave to report as follows:

     The purpose of this bill is to increase the maximum value of
the exemption from attachment and execution, for a motor vehicle
owned by a debtor facing bankruptcy proceedings, from $1,000 to
$2,575.

     The Hawaii Financial Services Association testified in
support of this bill.

     Your Committees find that the current exemption of a
debtor's motor vehicle from attachment and execution, of $1,000,
means that a debtor subject to bankruptcy proceedings is allowed
to keep a motor vehicle if it is valued at $1,000 or less.  Since
the average price of a vehicle is more than $1,000, the current
exemption usually results in an auction in which the debtor's car
is sold, the exempted $1,000 is returned to the debtor, and the
balance is paid to creditors.  Ironically, this leaves the debtor
without transportation at the very time when the use of a vehicle
for employment purposes is of critical importance.  This measure
rectifies this problem by increasing the exemption for a debtor's
motor vehicle, from $1,000, to $2,575, which matches the federal
law exemption.


 
 
                                 STAND. COM. REP. NO. 1696
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committees on Consumer Protection and Commerce and Judiciary and
Hawaiian Affairs that is attached to this report, your Committees
are in accord with the intent and purpose of S.B. No. 484, S.D.
1, and recommend that it pass Second Reading and be placed on the
calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Consumer
                                   Protection and Commerce and
                                   Judiciary and Hawaiian
                                   Affairs,

                                   
                                   
                                   
                                   
______________________________     ______________________________
PAUL T. OSHIRO, Chair              RON MENOR, Chair