Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Agriculture and Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2291 entitled:

beg leave to report as follows:

The purpose of this measure is to specify that a security interest is perfected upon purchase by a party who purchases the right to payment from an individual of winnings in a lottery or other games of chance.

Testimony in support of this measure was received from Hawaii's Commission to Promote Uniform Legislation (Commission).

According to the Commission, this measure also corrects technical errors.

The automatic perfection of a security interest to the purchaser alleviates the need to file or refile Uniform Commercial Code financing statements, according to the Commission. The effect is to steamline paper filings with the Department of Commerce and Consumer Affairs without jeopardizing any party's rights or liabilities.

As affirmed by the records of votes of the members of your Committees on Agriculture and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2291 and recommend that it pass Second Reading and be referred to the Committee on Judiciary.