STAND. COM. REP. NO. 3165

Honolulu, Hawaii

RE: S.B. No. 3323

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 3323, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ATTACHMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Increase the amount of interest in real property that is exempt from attachment and execution;

(2) Amend the value of personal property that is exempt from attachment and execution, including increasing the exemption amount for a motor vehicle; and

(3) Exempt from attachment or execution, an amount equivalent to one month of child support and one month of spousal support.

Your Committee received testimony in support of this measure from Neighboring Place of Puna, Hawai‘i Health & Harm Reduction Center, and one individual. Your Committee received testimony in opposition to this measure from the Mortgage Bankers Association of Hawaii, Hawaii Financial Services Association, Hawaii Credit Union League, and Collection Law Section.

Your Committee finds that the current statutory exemptions from attachment or execution of real and personal property need to be updated to create a safety net of assets for Hawaii families who are struggling to earn a living under heavy debt obligations. These families include workers who live from paycheck to paycheck and have incurred debt due to an unexpected event such as a job layoff, accident, or illness. This measure will allow these families and others to retain some of their assets by increasing the statutory exemptions.

Your Committee has amended this measure by:

(1) Specifying that the equivalent of one month of child support or $5,000, whichever is lower, and one month of spousal support or $5,000, whichever is lower, in the possession of a debtor who is the recipient of the support payment is exempt from attachment or execution; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3323, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3323, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair