Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1113 entitled:

begs leave to report as follows:

The purpose of this measure is to remove the requirement that the Department of Human Services file an annual update of its liens with the Bureau of Conveyance, clarify the distinction between the two different liens provided by section 346-29.5, Hawaii Revised Statutes, and clarify that the department may initiate probate proceedings.

Your Committee received testimony in favor of this measure from the Department of Human Services.

Your Committee finds that as the number of liens held by the Department increases, the clerical burden placed upon the Department and the Bureau to update the lien amounts, prepare notices of lien, and then file and record the liens is becoming an unreasonable burden which devours countless hours of time. There are two distinct liens and it is unclear whether the recording and tracking procedures apply to both types of liens. While any creditor may initiate probate proceedings, the current language prohibits the Department, which is another creditor, from initiating probate proceedings. This measure will address these problems.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1113 and recommends that it pass Third Reading.