STAND. COM. REP. NO.2966

Honolulu, Hawaii

, 2002

RE: H.B. No. 1825

H.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Agriculture and Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1825, H.D. 1, entitled:

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

beg leave to report as follows:

The purpose of this measure is to make technical amendments to Article 9 of the Uniform Commercial Code (UCC) in Chapter 490, Hawaii Revised Statutes to maintain consistency with other state UCC statutes.

Your Committees received testimony in favor of this measure from Hawaii's Commission to Promote Uniform Legislation.

Your Committees find that the revision of Article 9 was a five-year drafting project of the National Conference of Commissioners on Uniform State Laws, and because of the complexities of the project, there were some errors and ambiguities that had not been detected until after the enactment of Revised Article 9 in the various states. This measure corrects these technical errors and provides consistency in the perfection of various security interests. Further, section 3 provides that if a person sells a right to receive payment of winnings in a lottery or other game of chance, the security interest of the party that purchases that right to payments is automatically perfected and the purchaser does not have to file or refile UCC financing statements. Other "payment tangibles" are treated the same way under Revised Article 9. These amendments will maintain uniformity with Revised Article 9, which has been adopted in all other states and the District of Columbia.

As affirmed by the records of votes of the members of your Committees on Agriculture and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1825, H.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair

____________________________

JAN YAGI BUEN, Chair