STAND. COM. REP. NO. 55

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1271
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1271 entitled: 

     "A BILL FOR AN ACT RELATING TO THE UNIFORM PRINCIPAL AND
     INCOME ACT,"

begs leave to report as follows:

     The purpose of this bill is to repeal and replace the
Revised Uniform Principal and Income Act of Chapter 557, Hawaii
Revised Statutes, with a new act that establishes trustee estate
administration procedures that are updated to function consistent
with modern trust investment practices.

     Hawaii's Commission to Promote Uniform Legislation urged
adoption of this measure, testifying that revision of the law is
necessary to provide a modern set of rules allowing, among other
things, adjustment for prudent investment decisions and tax laws.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1271 and recommends that it pass
Second Reading and be referred to the Committees on Consumer
Protection and Commerce and Judiciary and Hawaiian Affairs.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 55
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair