STAND. COM. REP. NO.  1600

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1265

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1265, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTS,"

begs leave to report as follows:

The purpose of this measure is to amend the regulation of owner's agreements with an attorney to locate, deliver, recover, or assist in the recovery of property that is presumed abandoned by:

     (1)  Repealing the exemption of an owner's agreement with an attorney to file a claim as to identified property or contest the administrator's denial of a claim from the application of agreements to locate property as outlined in section 523A-25, Hawaii Revised Statutes;

     (2)  Specifying that an owner's agreement to locate, deliver, recover, or assist in the recovery of property that provides for compensation shall be unenforceable except by the owner if the compensation exceeds 25, rather than ten, percent of the total value of the property; and

     (3)  Specifying that an owner, or an administrator on behalf of an owner, who has agreed to pay compensation that exceeds 25 percent of the value of the property in accordance with an agreement to locate, deliver, recover, or assist in the recovery of property may maintain an action to reduce the compensation to an amount not to exceed 25 percent.  

A concerned individual testified in support of this measure.

     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 S.B. No. 1265, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair