STAND. COM. REP. NO. 226

Honolulu, Hawaii

, 2023

RE: H.B. No. 525

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 525 entitled:

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

begs leave to report as follows:

The purpose of this measure is to implement the 2022 amendments to the Uniform Commercial Code proposed by the Uniform Law Commission.

Your Committee received testimony in support of this measure from the Commission to Promote Uniform Legislation.

Your Committee finds that the Uniform Commercial Code is a comprehensive set of laws governing all commercial transactions. However, the expansion of emerging technologies required a reexamination of the Uniform Commercial Code and its capacity to address these emerging technologies. The language in this measure is the product of the extensive contemporaneous discussions from that reexamination by the Uniform Law Commission.

Your Committee has amended this measure by:

(1) Changing the effective date to June 30, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 525, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 525, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

MARK M. NAKASHIMA, Chair