STAND. COM. REP. NO.809-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2701

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred S.B. No. 2701, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PREVENTION OF THE FILING OF FRIVOLOUS FINANCING STATEMENTS,"

begs leave to report as follows:

The purpose of this bill is to enable the Bureau of Conveyances (Bureau) to more readily distinguish between legitimate and frivolous financing statements by assuring that the filing of financial statements are authorized by the debtors.

The Attorney General, the Department of Land and Natural Resources, and the Commission to Promote Uniform Legislation testified in support of this measure.

Under Act 241, Session Laws of Hawaii 2000, it is not possible for the Bureau to recognize and prevent the filing of counterfeit financing statements because the requirement for the debtor's signature was deleted which removed the most effective means for the Bureau to recognize when financing statements were filed with ill intentions or frivolous purposes.

Your Committee finds that there is a serious problem of persons filing frivolous financing statements each year and that these actions have had a seriously disruptive effect on members of the public.

Your Committee has amended this measure by:

(1) Deleting the phrase, "A BILL FOR AN ACT", that was inadvertently included in the title of the bill; as amended, the title reads: "RELATING TO THE PREVENTION OF THE FILING OF FRIVOLOUS FINANCING STATEMENTS"; and

(2) Making other technical, nonsubstantive amendments for purposes of clarity, conformity, and style.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2701, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2701, S.D. 1, H.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Water and Land Use,

 

____________________________

EZRA KANOHO, Chair