CONFERENCE COMMITTEE REP. NO.172

Honolulu, Hawaii

, 2005

RE: H.B. No. 393

H.D. 1

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 393, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE COUNTIES,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to preserve the counties' ability to collect unpaid fines while protecting commercial lenders' security interests in mortgaged property by providing, among other things, that:

(1) Unpaid civil fines, if added by the county by ordinance to taxes, fees, or charges:

(A) Shall not become a part of those taxes, fees, or charges; and

(B) Shall become a lien on the debtor's real property and against land registered in Land Court only upon recordation of the notice of the unpaid fines in the Bureau of Conveyances;
    1. The lien in favor of the county shall be subordinate to previously recorded or registered liens but senior to those recorded or registered thereafter;
    2. The recorded notice of unpaid civil fines must state the amount of the fine as of the date of the notice and the maximum permissible daily increase in the fine;
    3. The lien continues until the unpaid civil fines are paid in full or until a certificate of release or partial release, prepared by the county at the owner’s expense, is recorded; and

(5) The counties may also recover unpaid civil fines by requiring payment of the fines before issuing or renewing a license, approval, or permit for which a fee is assessed, except for water for residential use, and sewer charges.

Your Committee on Conference finds that this bill is an outgrowth of concerns raised by commercial lending institutions that a county can attach unpaid fines, plus interest, to real property taxes. A lender would have no notice of these unrecorded fines, which, as attached to the real property taxes, would have a lien priority over mortgage liens. The bill reflects a compromise between lending institutions and the City and County of Honolulu Department of Planning and Permitting, that allows both the lending institutions and the counties to protect their interests in this matter.

Your Committee on Conference has amended this bill by changing the effective date from July 1, 2010, to upon approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 393, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 393, H.D. 1, S.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

DAVID Y. IGE, Chair

____________________________

KENNETH HIRAKI, Co-Chair

____________________________

COLLEEN HANABUSA, Co-Chair

____________________________

SYLVIA LUKE, Co-Chair

____________________________

BRIAN T. TANIGUCHI, Co-Chair

____________________________

KAMEO TANAKA, Co-Chair