HB2147 HD1 HSCR499-04

 

STAND. COM. REP. NO. 499-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2147

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2147 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIFORM COMMERCIAL CODE,"

begs leave to report as follows:

The purpose of this bill is to provide a legal framework for the use and further development of electronic documents of title, by enacting amendments to Article 7 of the Uniform Commercial Code, Documents of Title, as proposed by the State Commission to Promote Uniform Legislation in 2003.

The State Commission to Promote Uniform Legislation testified in support of this bill.

Your Committee finds that in addressing electronic documents of title the law must deal with many issues: recognition of electronic documents of title, statute of frauds extensions, establishment of the unique original in electronic form (authentication), and the interchangeability of electronic and tangible documents of title.

In addition, the rules for electronic documents of title must fit as seamlessly as possible into the existing system governing tangible documents of title. The law should avoid skewing the choice between tangible and electronic documents of title in favor of either form. Only the marketplace should determine users' choices.

Your Committee finds that Article 7 as revised in this bill, deals with these issues and meets the test of seamless insertion into the existing law.

Your Committee has amended this measure by making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2147, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2147, H.D. 1, and be placed on the calendar for Third Reading.

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

 

		____________________________ KENNETH T. HIRAKI, Chair