STAND. COM. REP. NO. 2468

Honolulu, Hawaii

RE:    S.B. No. 2863

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2863, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE TAX LIEN AND ENCUMBRANCE RECORD,"

begs leave to report as follows:

     The purpose of this measure is to require the payment of judgments payable to the State or a county, as well as delinquent taxes and penalties, a condition precedent to the registration and renewal of a motor vehicle.

     Furthermore, this measure exempts the State and counties from paying fees for any entry made in the tax lien and encumbrance record.

     Your Committee received comments in support of the measure from the City and County of Honolulu, Division of Motor Vehicles.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that placing encumbrances upon motor vehicles will significantly increase the likelihood of recovering outstanding debts owed to the State or a county.  Furthermore, exempting the State and counties from the fee requirement will further facilitate the recovery of those debts.

     Your Committee has amended this measure by making a technical nonsubstantive amendment for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2863, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2863, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONNA MERCADO KIM, Chair