STAND. COM. REP. NO. 856

Honolulu, Hawaii

RE: S.B. No. 352

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 S.B. No. 352, 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 amendments to the Uniform Commercial Code 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 Legislature. Your Committee received comments on this measure from the Uniform Law Commission.

Your Committee finds that the Uniform Commercial Code is a set of rules to govern commercial transactions. For over sixty years the Uniform Commercial Code has worked to facilitate commerce throughout the United States because it has been adopted in nearly identical form by every United States jurisdiction. As a result, the law governing transactions is substantially the same regardless of what states the parties to the transactions are located. This measure will update the Uniform Commercial Code to keep pace with legal and technological developments and ensure that the Uniform Commercial Code continues to facilitate commercial activity well into the future.

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 S.B. No. 352, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 352, S.D. 2.

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

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KARL RHOADS, Chair