Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 531 entitled:

begs leave to report as follows:

The purpose of this measure is to require for nonconsensual common law liens that a claim of lien against a private party filed with land court and the bureau of conveyances must be accompanied by a certified order from a state or federal court of competent jurisdiction authorizing the filing of the lien to be valid.

Your Committee received testimony in support of the measure from the Attorney General and Board of Land and Natural Resources. Testimony in opposition was received from the Hawaii Bankers' Association which proposed a clarifying amendment.

Your Committee finds that invalid instruments which purport to affect the property interests of various people, including but not limited to government officers and employees, are instruments that have no basis in fact or in law and have a seriously disruptive effect on property interests and titles. Invalid liens appearing on title searches and other disclosures are costly and time-consuming to expunge. When they appear, they obstruct a property owner's ability to transfer title or obtain title insurance and financing. This measure would extend to the general public the same protection currently extended to government officials.

Your Committee has amended this measure to clarify that the lien is a "nonconsensual common law lien."

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. 531, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 531, S.D. 1, and be placed on the calendar for Third Reading.