STAND. COM. REP. NO. 1728

Honolulu, Hawaii

RE: H.B. No. 525

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 525, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to implement the 2022 Uniform Commercial Code Amendments set forth by the Uniform Law Commission.

Your Committee received testimony in support of this measure from the State of Hawaii Commission to Promote Uniform Legislation. Your Committee received testimony in opposition to this measure from the Hawaii County General Jural Assembly; Shakamaps LLC; Aloha Freedom Coalition; Maui Hula Wahine LLC; For Our Rights; Amare is Aloha; Parents United for Hawaii; Therapeutic Touch of Hawaii; CV4CR Inc.; and approximately seven hundred fifteen individuals. Your Committee received comments on this measure from the Uniform Law Commission and Grassroot Institute of Hawaii.

Your Committee finds that the Uniform Commercial Code provides a set of laws for broad categories of commercial transactions. In 2022, the Uniform Commercial Code was amended to reflect the economy's shift towards services, software, and information-based transactions. This measure adopts the amendments to the Uniform Commercial Code to reflect the current economy.

Your Committee has amended this measure by:

(1) Making it effective upon its approval; and

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

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 525, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 525, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

________________________________

KARL RHOADS, Chair