STAND. COM. REP. NO. 2634

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2982
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2982 entitled: 

     "A BILL FOR AN ACT RELATING TO CHILD SUPPORT,"

begs leave to report as follows:

     The purpose of this measure is to clarify that liens arising
from child support orders or judgments take priority over
subsequently filed liens only when the debtor is actually
delinquent in his or her payments at the time the subsequent
liens are filed.

     Your Committee finds that this clarification in the law will
assist the Child Support Enforcement Agency (CSEA) in its
responsibility to collect delinquent child support, and will
provide lenders with greater certainty as to who is affected by
the law.  However, your Committee believes that a child support
lien should have priority only to the extent of the delinquent
amounts owed as of the date a subsequent loan was acquired or
recorded.  It is not your Committee's intent to interfere with
CSEA's responsibility in collecting child support obligations,
but your Committee recognizes that lenders need certainty as to
what their exposure to risks might be.

     Testimony in support of this measure was submitted by the
Child Support Enforcement Agency.  Comments on this measure was
submitted by Title Guaranty of Hawaii, Inc. and an individual.


 
a                                                     
 
                                   STAND. COM. REP. NO. 2634
                                   Page 2


     Upon further consideration, your Committee has amended this
measure by:

     (1)  Providing that a child support lien should have
          priority only to the extent of the delinquent amounts
          owed as of the date a subsequent loan was acquired or
          recorded;

     (2)  Providing that a later arising child support lien
          should have priority over a prior lien that arose at a
          time when an earlier child support lien was in effect,
          but only to the extent of the delinquent amounts owed
          and secured by the earlier child support lien at the
          time the non-child support lien arose; and

     (3)  Making technical, non-substantive changes for the
          purposes of clarity and style.

     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.
2982, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 2982, S.D. 1, and
be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
a