STAND. COM. REP. NO.932
Honolulu, Hawaii
, 2001
RE: S.B. No. 1007
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Water and Land Use, to which was referred S.B. No. 1007 entitled:
"A BILL FOR AN ACT RELATING TO NONCONSENSUAL COMMON LAW LIENS,"
begs leave to report as follows:
The purpose of this bill is to protect the public from the filing of frivolous and invalid lien claims by:
(1) Requiring that a claim of lien against a private party must be accompanied by a certified court order to be valid; and
(2) Clarifying the circumstances when a notice of invalid lien may be appropriate to be filed.
Your Committee finds that the filing of invalid liens can have a disruptive effect on property interests and title. When these invalid liens appear on title searches and other disclosures, they are costly and time-consuming to expunge. They may also obstruct a property owner's ability to transfer title or obtain title insurance and financing.
The Department of Land and Natural Resources and the Attorney General testified in support of this measure. The Hawaii Bankers Association opposed this bill.
Your Committee has amended this bill by:
(1) Specifying that liens apply only to nonconsensual liens to ensure that mortgage liens are not affected by this bill; and
(2) Making technical, nonsubstantive amendments to correct technical drafting errors.
As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1007, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1007, H.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Water and Land Use,
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____________________________ EZRA KANOHO, Chair |
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