Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.B. No. 532, entitled:

begs leave to report as follows:

The purpose of this bill is to enable the State of Hawaii Bureau of Conveyances to:

(1) Prevent the filing of frivolous financing statements by rejecting documents which are not authorized by the debtors.

(2) Allow the Bureau of Conveyances to more readily distinguish between legitimate financing statements and those that are frivolous and not authorized by the debtors, when they are presented to the bureau.

This measure will effectively prevent frivolous financing statements among the thousands that are presented annually to the people at the counter of the bureau.

The State Attorney General and the Department of Land and Natural Resources submitted testimony in support of this measure.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 532, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 532, H.D. 2, and be referred to the Committee on Finance.