STAND. COM. REP. NO. 1263

Honolulu, Hawaii

RE:    H.B. No. 1447

       H.D. 2

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1447, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PERMITTED TRANSFERS IN TRUST ACT,"

begs leave to report as follows:

     The purpose and intent of this measure is to amend provisions of the Permitted Transfers in Trust Act governing transfers of property from a transferor to a trustee by means of an irrevocable trust instrument.

     Your Committee finds that revisions to certain definitions in the Permitted Transfers in Trust Act are necessary to conform to definitions contained in the Code of Federal Regulations. 

     Your Committee has amended this measure by:

     (1)  Clarifying that the definition of a "permitted trustee" does not include a transferor under the Permitted Transfers in Trust Act;

     (2)  Clarifying that a claim under the Permitted Transfers in Trust Act shall be extinguished unless the claim arose before the permitted transfer was made and the action was brought on the latter of the date of the permitted transfer or July 1, 2010, rather than July 1, 2011; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1447, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1447, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair