STAND. COM. REP. NO. 906-04
Honolulu, Hawaii
, 2004
RE: S.B. No. 2877
S.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committees on Consumer Protection and Commerce and Judiciary, to which was referred S.B. No. 2877, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO UNCLAIMED PROPERTY,"
beg leave to report as follows:
The purpose of this bill is to provide consistency between the administration of unclaimed funds and the intent of the unclaimed property law by:
(1) Repealing statutory provisions that provide for the escheatment of unclaimed property to the State;
(2) Including a savings clause to ensure that previous dispositions of unclaimed property under the repealed law are not affected; and
(3) Continuing to transfer funds in excess of $1,300,000 in the Unclaimed Trust Fund to the general fund at the end of each fiscal year.
Testimony in support of this administration measure was received from the Department of Budget and Finance.
Your Committees find that the present statute, section 523A-3.5, Hawaii Revised Statutes, provides that funds or property held for a period of two to six years, depending upon the value of the property being held, shall permanently escheat to the State. Your Committees further find that this law conflicts with the intent of the State's unclaimed property program, which requires the State to serve as custodian of unclaimed property until it is claimed by the rightful owner.
It should be noted that section 523A-3.5, HRS, was enacted in 1996 but has never been implemented, and the failure to implement this section has not had a negative impact on the public.
As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2877, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Consumer Protection and Commerce and Judiciary,
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____________________________ ERIC G. HAMAKAWA, Chair |
____________________________ KENNETH T. HIRAKI, Chair |
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