Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 484

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 484 entitled: 


begs leave to report as follows:

     The purpose of this measure is to increase the maximum
limit for the value of a motor vehicle exempt from attachment and

     The Hawaii Financial Services Association, which was not
present at the hearing, submitted written testimony in support of
the measure.  Verbal testimony was also presented by an
individual at the hearing.

     The current law, section 651-121(2), Hawaii Revised
Statutes, established in 1976, allows a $1,000 attachment and
execution exemption for a motor vehicle.  Your Committee finds
that this is insufficient and would deprive most debtors of a
reliable mode of transportation.  Your Committee also finds that
a motor vehicle is a basic necessity for many Hawai'i residents,
especially those living in rural areas.  Without a motor vehicle,
many residents would be unable to travel to and from work, the
store, and medical services.

     This measure proposes a $2,575 motor vehicle exemption that
would ensure debtors facing bankruptcy can meet their basic
transportation needs.  The proposed exemption would also make

a                                                     SB484
                                   STAND. COM. REP. NO. 88
                                   Page 2

State law consistent with the federal bankruptcy code, which
currently allows a maximum $2,575 motor vehicle exemption.

     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 S.B. No. 484 and recommends that it pass Second
Reading and be referred to the Committee on Judiciary.

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

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair

a                                                     SB484