STAND. COM. REP. NO.568

Honolulu, Hawaii

, 2001

RE: H.B. No. 896

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 896 entitled:

"A BILL FOR AN ACT RELATING TO THE REVISED UNIFORM COMMERCIAL CODE ARTICLE 9 – SECURED TRANSACTIONS,"

begs leave to report as follows:

The purpose of this bill is to make technical amendments to Act 241, Session Laws of Hawaii 2000, which completely revised Article 9 of the Hawaii's Uniform Commercial Code (Article 9) based on the model adopted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 1998.

Testimony in support of this bill was received from Hawaii's Commission to Promote Uniform Legislation.

Your Committee finds that the revision of Article 9 was part of a five-year effort by NCCUSL to incorporate modern commercial changes into the Uniform Commercial Code, a law that was originally drafted in the 1940s and 50s. Because of the complex nature of the project, there were some errors and ambiguities that were not detected until after NCCUSL adopted the revised Article 9 in 1998.

Your Committee further finds that the amendments set forth in this bill will maintain uniformity with NCCUSL's revised Article 9, which has been adopted in twenty-seven other states and the District of Columbia, and which is under consideration in over a dozen legislatures this year.

Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 896, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 896, H.D. 1, and be placed on the calendar for Third Reading.

 

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

____________________________

KENNETH T. HIRAKI, Chair