STAND. COM. REP. NO. 1082

Honolulu, Hawaii

RE:    H.B. No. 1287

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Tourism and Government Operations, 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 measure is to repeal the law on escheat process.

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

     Act 214, Session Laws of Hawaii 1996, enacted the escheat process law, codified as section 523A-3.5, Hawaii Revised Statutes, which is repealed by this measure.  According to the Department of Budget and Finance, this section has never been implemented.

     Your Committee finds that escheat is contradictory to the State's unclaimed property program which reunites owners of property with their unclaimed property.  Your Committee further finds that the public is not harmed by this measure inasmuch as there would no longer be a time limit for filing claims.

     As affirmed by the record of votes of the members of your Committee on Tourism and Government Operations 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 referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism and Government Operations,

____________________________

CLARENCE K. NISHIHARA, Chair