Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2877 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the State to serve in perpetuity as the custodian of unclaimed property and funds to allow rightful owners to claim their property or funds without time constraints.

Your Committee finds that under section 523A-3.5, Hawaii Revised Statutes, property or funds held for a period of two to six years, depending upon the value of the property, shall permanently escheat to the State. This law, however, conflicts with the intent of the State's Unclaimed Property Program, which requires the State to serve as custodian of unclaimed property or funds until it is claimed by its rightful owner.

This measure repeals section 523A-3.5, Hawaii Revised Statutes, to provide consistency in the law and administration of unclaimed property and funds. Additionally, since the enactment of section 523A-3.5, Hawaii Revised Statutes, in 1996, the law has never been implemented nor has the public been adversely affected under the Unclaimed Property Program.

Your Committee has amended the bill by adding a savings clause to ensure the rights of claimants of unclaimed property.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2877, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2877, S.D. 1, and be placed on the calendar for Third Reading.