Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 462, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to enact a new Uniform Arbitration Act.

Your Committee received testimony in favor of this measure from the Judiciary, Hawaii Commission on Uniform State Laws, Hawaii Bankers Association, and Hawaii Association of Realtors. Opposing testimony was received from the American Council of Life Insurers. Comments were submitted by State Farm Insurance Companies.

Current law on arbitration is governed by chapter 658, Hawaii Revised Statutes, relating to arbitration and awards, which was enacted in 1955. This measure would repeal that chapter and enact a new arbitration law that is recommended for adoption in all fifty sates.

Your Committee finds that arbitration has become a more viable alternative to litigation. However, Hawaii's arbitration laws are out-dated and do not adequately reflect the current arbitration practices that have developed over the years. This measure not only provides for varied arbitration practices, it also addresses procedural issues to meet modern needs.

Your Committee has amended this measure by changing the effective date to January 1, 2050, in the interests of continuing discussion in conference, and making technical, nonsubstantive amendments to comport with proper drafting.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 462, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 462, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.