STAND. COM. REP. NO. 596

Honolulu, Hawaii

RE: S.B. No. 352

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 352 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 amendments to the Uniform Commercial Code set forth 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 provides a set of laws for broad categories of commercial transactions including the sale or lease of goods, negotiable instruments, bank deposits and collections, funds transfers, letters of credit, documents of title, investment property, and secured transactions in personal property. The Uniform Commercial Code has been adopted, in part, by all fifty states and the District of Columbia. 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 Uniform Commercial Code's amendments, updating the State's law to reflect the current economy.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; 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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 352, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 352, S.D. 1, and be referred to your Committee on Judiciary.

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

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JARRETT KEOHOKALOLE, Chair