Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 596 entitled:

begs leave to report as follows:

The purpose of this measure is to:

1. Give the Hawaii Hurricane Relief Fund (HHRF) Board of Directors (HHRF Board) the power to suspend or reactivate the HHRF's special mortgage recording fee; and
2. Extend the Director of Finance's authorization to issue reimbursable general obligation bonds for HHRF to fiscal year 2001-2002.

HHRF and Hawaii Independent Insurance Agents Association testified in support of this measure. The Board of Land and Natural Resources and Mortgage Bankers of Hawaii testified in support of the intent of this bill.

Your Committee finds that since the HHRF will end its insurance program by December 1, 2001, the mortgage recording fee will no longer be required as a funding source for claims made under HHRF insurance policies. If the HHRF Board suspends the special mortgage recording fee, it will remove the burden on persons filing mortgage documents with the Bureau of Conveyances, of paying the special mortgage recording fee. Your Committee further finds that the extension of Department of Finance's authorization to issue reimbursable general obligation bonds is necessary to ensure HHRF has this funding source available and to retain its federal tax exempt status.

Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of style, clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 596, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 596, H.D. 1, and be referred to the Committee on Finance.