STAND. COM. REP. NO.  227

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 22

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 22 entitled:

"A BILL FOR AN ACT RELATING TO PARTITION OF HEIRS PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to adopt the Uniform Partition of Heirs Property Act, which establishes procedures and remedies for use in actions for partition of real property involving heirs property.

The Commission to Promote Uniform Legislation and one individual testified in support of the measure.

     Your Committee finds that, generally, any cotenant of a tenancy-in-common may file an action with the appropriate court to partition the property.  If the cotenants cannot agree on parcels of equal value, the court will often order a partition by sale, whereby the property is sold as a single parcel and the proceeds are distributed to the cotenants in equal shares.  Your Committee further finds that in court actions involving heirs property, a type of tenancy-in-common in which relatives are cotenants, partitions by sale initiated by nonfamily cotenants often result in family members losing their assets for prices well below market value.  This measure establishes a process designed to protect a family's property holdings, whereby all owners of heirs property are treated fairly when one or more cotenants wish to sell their share.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 22 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair