Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2728 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the law establishing procedures for the voluntary termination of an escrow depository.

The Commissioner of Financial Institutions testified in support of this measure.

Act 184, Session Laws of Hawaii 2001 (Regular Session) established a new section within chapter 449, Hawaii Revised Statutes, that conformed the voluntary termination procedures for escrow depositories with the procedures for other state-regulated financial institutions. In the new statutory section, requirements relating to the designation of a contact person for closed accounts were referenced twice, within different subsections. This measure eliminates the redundancy resulting therefrom, and clarifies the law by placing all references to the contact person requirement within one subsection.

Your Committee has amended this measure 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 S.B. No. 2728, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2728, S.D. 1, and be placed on the calendar for Third Reading.