Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 896, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to make certain technical amendments to Act 241, Session Laws of Hawaii 2000, which completely revised Article 9 of Hawaii's Uniform Commercial Code (UCC).

Your Committee received testimony in support of this measure from Hawaii's Commission to Promote Uniform Legislation.

Your Committee finds that the revision of UCC Article 9 was a five-year project undertaken by the National Conference of Commissioners on Uniform State Laws (NCCUSL). Because of the complexity of the project, there were some errors and ambiguities that were not discovered until after NCCUSL approved revised Article 9 in 1998.

The amendments proposed in this measure will maintain the conformity of Act 241, Session Laws of Hawaii 2000, to UCC Article 9 as revised by NCCUSL.

Your Committee has amended this measure for purposes of clarity and to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 896, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 896, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.