STAND. COM. REP. NO. 663-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2585
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2585 entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIFORM ELECTRONIC
     TRANSACTIONS ACT,"

begs leave to report as follows:

     The purpose of this measure is to adopt the Uniform
Electronic Transactions Act (UETA) that establishes a law to
govern electronic records and electronic signatures on a
transaction.

     Testimony in support of this measure was submitted by the
Lieutenant Governor, Department of Commerce and Consumer Affairs,
Department of Accounting and General Services, Insurance Division
of the Department of Commerce and Consumer Affairs, the American
Council of Life Insurers, and the Hawaii Uniform Law
Commissioners. 

     Testimony in support of this measure, with proposed
amendments, was submitted by State Farm Insurance Companies.  

     Your Committee finds that this measure is an administration
bill flagged as a SWAT (Slice Waste and Tape) measure whose
underlying purpose is to reduce the regulatory burden of rules
and minimize their negative effect on residences, businesses, the
economy, and government operations.  


 
 
 
                                 STAND. COM. REP. NO. 663-00
                                 Page 2

 
     UETA provides a clear framework for covered transactions,
and also avoids unwarranted surprises for unsophisticated parties
dealing in this relatively new media, including exemptions for
certain statutory sections dealing primarily with notices and
disclosures to consumers in a variety of contexts.  This balance
has been accomplished while still providing a solid legal
framework to allow for the continued development of innovative
technology to facilitate electronic transactions. 

     Your Committee finds that Hawaii Revised Statutes provisions
that have been exempted from this measure have been determined by
a collaboration of the Department of Commerce and Consumer
Affairs (DCCA), Insurance Division of the DCCA, and Office of
Consumer Protection.  

     Your Committee has made technical nonsubstantive changes for
purposes of clarity, consistency, and style.  

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2585, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2585, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair