STAND. COM. REP. NO. 838

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1447

       H.D. 2

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1447, H.D. 2, 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 received testimony in support of this measure from First Hawaiian Bank, Bank of Hawaii, and one private individual.

 

     Your Committee finds that certain provisions of the Permitted Transfers in Trust Act, as it is currently written, prevent local trust companies from effectively taking part in the perpetual trust market.  Your Committee further finds that this measure corrects those provisions to allow Hawaii's financial sector to become more competitive in attracting perpetual trust investment.  Your Committee finally finds that this measure amends the definitions of certain terms in the Permitted Transfers in Trust Act to create consistency with definitions contained in the Code of Federal Regulations.

 

     Your Committee has amended this measure by:

 

     (1)  Inserting an effective date of July 1, 2011; and

 

     (2)  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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1447, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1447, H.D. 2, S.D. 1, and be referred to the Committee on Judiciary and Labor.

 

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

 

 

 

____________________________

ROSALYN H. BAKER, Chair