STAND. COM. REP. NO. 1462

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 Ways and Means, 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 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.

Your Committee received no comments on this measure.

     Your Committee finds that section 523A-3.5, Hawaii Revised Statutes, was enacted in 1996.  However, the law has never been enforced because, according to the Department of Budget and Finance, it conflicts with the State's Unclaimed Property Program.  Under that program, the State serves as the custodian of unclaimed property in perpetuity, thereby allowing the rightful property owners to claim their property without time constraints.

     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 H.B. No. 1287, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair