Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1259, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to adopt revised and updated general provisions of the Uniform Commercial Code.

The State Commission to Promote Uniform Legislation and Hawaii Bankers Association testified in support of this measure.

Commercial transactions in the State are governed by the Uniform Commercial Code (Code) which is established in chapter 490, Hawaii Revised Statutes. The Code was first drafted in the early 1950s, and subsequent changes in technology and business practices have required the revision of various articles of the Code. Your Committee finds that the adoption of a revised article 1, which establishes the Code's definitions and general provisions, is consistent with the State's adoption of other revisions to the Code.

Your Committee has amended this measure:

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. 1259, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1259, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.