STAND. COM. REP. NO.  1125

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 511

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 511 entitled:

"A BILL FOR AN ACT RELATING TO UNIFORM COMMERCIAL CODE ARTICLE 4A,"

begs leave to report as follows:

The purpose of this measure is to clarify the application of the federal Electronic Fund Transfer Act and article 4A of the Uniform Commercial Code to certain wire transfers.  

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, the Commission to Promote Uniform Legislation, and Hawaii Financial Services Association.

     Your Committee finds that recent amendments to the federal Electronic Fund Transfer Act have created uncertainty about the application of Article 4A of the Uniform Commercial Code to certain types of international wire transfers known as remittance transfers.  This measure will clarify the application of Article 4A of the Uniform Commercial Code and the Electronic Fund Transfer Act to remittance transfers and close a potential gap in the application of federal and state law.  

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 511 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair