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. 1571 entitled:

begs leave to report as follows:

The purpose of this measure is to revise Hawaii's arbitration laws.

Your Committee received testimony in favor of this measure from the Judiciary, Hawaii Commission on Uniform State Laws, and Hawaii Bankers Association. Opposing testimony was received from the American Council of Life Insurers.

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, 2006 and making technical, nonsubstantive amendments.

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. 1571, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1571, S.D. 1, and be placed on the calendar for Third Reading.