STAND. COM. REP. NO. _________

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2296
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2296 entitled: 

     "A BILL FOR AN ACT RELATING TO UNIFORM DISCLAIMER OF
     PROPERTY INTERESTS ACT,"

begs leave to report as follows:

     The purpose of this measure is to update State law regarding
the disclaimer of property interests by enacting the Uniform
Disclaimer of Property Interests Act (UDPIA).

     The State Commission to Promote Uniform Legislation
submitted testimony in support of the measure.

     Disclaimers are used to reallocate interests in estates,
trusts, and other types of property interests allocated at death,
and are often used to obtain more favorable tax treatment.  This
measure adopts the Uniform Disclaimer of Property Interests Act
(1999) which replaces three separate disclaimer acts promulgated
in 1978, including an earlier version of the UDPIA.  The UDPIA
authorizes the making of disclaimers, specifies the type of
interests that may be disclaimed, and establishes when
disclaimers are effective and the effects of a disclaimer on the
distribution of the disclaimed property interest.  Additionally,
the Act clarifies that trustees and other fiduciaries may use
disclaimers, powers of appointment may be disclaimed, and unfair
distributions of interests are avoided when disclaimers are used.  


 
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                                   STAND. COM. REP. NO. _________
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     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2296 and recommends that it pass Second
Reading and be referred to the Committee on Judiciary.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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