STAND. COM. REP. NO. 1203

Honolulu, Hawaii

RE:    H.B. No. 1138

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1138, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ATTORNEY'S LIENS,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a lien in favor of a certified shorthand reporter on the assets of an attorney's firm for unpaid services.

     In addition, this measure:

     (1)  Broadens attorney's liens to include arbitration proceedings; and

     (2)  Eliminates the one year deadline for filing the lien.

     Your Committee received comments in support of this measure from Bill Plum, Vice Chair, Collection Law Section, Hawaii State Bar Association; Sharon Mujtabaa, President, Hawaii Court Reporters and Captioners Association; and nine individuals.

     Your Committee finds that with recognition of a certified shorthand reporter's lien upon an attorney's assets is consistent with the customs and practices of the majority of the states, in which attorneys, rather than their clients, handle and maintain control over all aspects of litigation, including hiring reporter services, and are therefore responsible for reimbursing the reporter.

     Your Committee further finds that the amendments regarding the attorney's lien are necessary to eliminate taxation problems associated with the one year deadline for filing the lien and to provide greater consistency and clarity in the statutory terms.

     Your Committee has amended this measure by changing the effective date to July 1, 2117, to facilitate continued discussion of the measure.

     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 H.B. No. 1138, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1138, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair