STAND. COM. REP. NO. 948-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2536
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committees on Judiciary and Hawaiian Affairs and
Consumer Protection and Commerce, to which was referred S.B. No.
2536, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIFORM PRINCIPAL AND
     INCOME ACT,"

beg leave to report as follows:

     The purpose of this bill is to repeal the existing Uniform
Principal and Income Act, chapter 557, Hawaii Revised Statutes,
and adopt in its place the revised Uniform Principal and Income
Act.

     Testimony in support of this bill was provided by the
Hawaii's Commission to Promote Uniform Legislation, the Hawaii
Bankers Association, The Hawaii Society of Certified Public
Accountants, Pacific Century Trust, and Central Pacific Bank.

     Your Committee finds that the revised Uniform Principal and
Income Act complements Hawaii's Uniform Prudent Investor Act by
enabling the application of the modern portfolio theory of
investing to trusts and estates.

     Your Committee amended this bill by deleting a phrase in the
second sentence of  §  -105(f) that does not appear in the
uniform act.


 
 
 
                                 STAND. COM. REP. NO. 948-00
                                 Page 2

 
     As affirmed by the records of votes of the members of your
Committees on Judiciary and Hawaiian Affairs and Consumer
Protection and Commerce that are attached to this report, your
Committees are in accord with the intent and purpose of S.B. No.
2536, S.D. 1, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as S.B. No. 2536, S.D.
1, H.D. 1, and be referred to the Committee on Finance.

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





____________________________       ______________________________
RON MENOR, Chair                   ERIC G. HAMAKAWA, Chair