STAND. COM. REP. NO.1723

Honolulu, Hawaii

, 2001

RE: H.B. No. 567

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 567 entitled:

"A BILL FOR AN ACT RELATING TO UNCLAIMED PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to allow purchasers of Hawaii state and county issued bonds to claim moneys, such as interest payments and redemption proceeds, in perpetuity from the State's unclaimed property program.

Your Committee finds that unpaid debt service payments on Hawaii state and county issued bonds are currently turned over to the State's unclaimed property program. State law provides for the escheat of moneys remaining unclaimed from two to six years on a staggered schedule, depending on the value of the property.

Bondholders therefore have a maximum of two to six years after the State's receipt of the moneys to claim their moneys or their claim would be barred forever. Your Committee finds that this is contrary to the intent of section 39-11, Hawaii Revised Statutes, which pledges the full faith and credit of the State to the punctual payment of the bond principal and interest as they become due, whether or not the pledge is stated in the bonds.

Your Committee agrees with the intent of this bill, which will enable bondholders to collect from the unclaimed property program all debt service payments on Hawaii state and county bonds in perpetuity, regardless of whether the bondholders can be found.

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. 567 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

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BRIAN T. TANIGUCHI, Chair