Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 735 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the law on permanent escheat of unclaimed property to the State.

Your Committee received testimony in support of this measure from the Department of Budget and Finance.

Section 523A-3.5, Hawaii Revised Statutes (HRS), provides that unclaimed property held by the State for periods ranging from two to six years, depending on the value of the property being held, be permanently escheated to the State. This provision is in conflict with the intent of the State's unclaimed property program in which the State serves as the custodian of the unclaimed property and reunites the property with the rightful owner. Section 523A-3.5, HRS, was enacted in 1996, but has never been implemented.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 735 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.