STAND. COM. REP. NO.  764

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1287

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1287 entitled:

"A BILL FOR AN ACT RELATING TO UNCLAIMED PROPERTY,"

begs leave to report as follows:

     The purpose of this bill is to enable the State to serve as the custodian rather than owner of unclaimed property in perpetuity, thereby allowing the rightful property owners to claim their property without time constraints.  This bill repeals section 523A-3.5, Hawaii Revised Statutes, which requires that unclaimed property permanently escheat to the State after being held for a period of two to six years.

     The Department of Budget and Finance testified in support of this bill.  A concerned individual opposed this measure.

     The State has never implemented the provisions repealed by this bill, because they conflict with the State's Unclaimed Property Program.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1287 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair