CONFERENCE COMMITTEE REP. NO. 68

Honolulu, Hawaii

                 , 2013

RE:    H.B. No. 25

       H.D. 2

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 25, H.D. 2, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SUSPENSION OF FORECLOSURE ACTIONS BY JUNIOR LIENHOLDERS,"

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 measure is to improve the foreclosure process by:

     (1)  Allowing a condominium or planned-community association, as a junior lienholder, to commence or continue a nonjudicial foreclosure action on a property subject to a judicial foreclosure even if the lender has filed for foreclosure; and

     (2)  Preserving the right of owner-occupants to require the foreclosing mortgagee to participate in the dispute-resolution process in situations in which an association forecloses on residential real property occupied by one or more owner-occupant mortgagors for whom the unit is and has been the person's primary residence for a continuous period of not less than 200 days immediately preceding the date on which the notice is served and the mortgagee subsequently forecloses its lien on the same property.

     Your Committee on Conference has amended this measure by:

     (1)  Changing the effective date to July 1, 2013; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 25, H.D. 2, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 25, H.D. 2, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ ROSALYN H. BAKER, Chair	____________________________ ANGUS L.K. MCKELVEY, Co-Chair
____________________________ CLAYTON HEE, Co-Chair	____________________________ KARL RHOADS, Co-Chair