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 S.B. No. 1043 entitled:

begs leave to report as follows:

The purpose of this measure is to allow a purchaser of Hawaii state and county issued bonds to claim moneys such as interest payments and redemption proceeds from the State's unclaimed property program in perpetuity.

Your Committee received testimony in favor of this measure from the Department of Budget and Finance.

Your Committee finds that purchasers of state and county bonds should be able to rely on the full faith and credit of the State. By exempting unpaid debt service payments on Hawaii state and county bonds from the escheat process, the payments will not escheat to the State and bondholders will be able to claim debt service payments in perpetuity.

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 S.B. No. 1043 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.