Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, 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 providing for the escheat to the State of unclaimed property.

In 1996, legislation was enacted at the request of the Department of Budget and Finance that provided for the escheat to the State of unclaimed property after a period of years varying with the value of the property. However, section 523A-3.5, Hawaii Revised Statutes, has never been implemented and is inconsistent with the policy of the State to act as custodian of unclaimed property until it can be reunited with the rightful owner.

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. 735 and recommends that it pass Third Reading.