Bill Text: HI SB2224 | 2012 | Regular Session | Amended
Bill Title: Tax Lien and Encumbrance Record
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-04-25 - (S) Act 067, 4/24/2012 (Gov. Msg. No. 1168). [SB2224 Detail]
Download: Hawaii-2012-SB2224-Amended.html
STAND. COM. REP. NO. 2171
Honolulu, Hawaii
RE: S.B. No. 2224
S.D. 1
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Sir:
Your Committees on Transportation and International Affairs and Public Safety, Government Operations, and Military Affairs and Judiciary and Labor, to which was referred S.B. No. 2224 entitled:
"A BILL FOR AN ACT RELATING TO THE TAX LIEN AND ENCUMBRANCE RECORD,"
beg leave to report as follows:
The purpose and intent of this measure is to clarify that:
(1) Judgments are also valid claims for purposes of encumbrances recorded in the tax lien and encumbrance record; and
(2) State and county agencies are not required to pay a fee for the recording of an entry in the tax lien and encumbrance record.
Your Committees received testimony in support of this measure from the Department of Taxation. Comments were received from the Honolulu Licensing Administrator.
Your Committees find that there is a need to expand the ability of state and county agencies to pursue reimbursement of outstanding debts since many debtors ignore payment obligations and recovery efforts by state and county agencies. Encumbrances on real property and motor vehicles are an effective mechanism to increase the likelihood of recovering outstanding debts.
State and county agencies may record liens or claims with the Director of Finance of each county, but are required to pay a statutory fee that is deposited into the general fund. Your Committees further find that the fee is hindering some agencies from utilizing the tax lien and encumbrance record to assist in recovery of outstanding debts owed to the agency.
Your Committees have amended this measure by:
(1) Allowing the taxpayer to enter into a payment agreement with the Department of Taxation to avoid a lien and encumbrance recordation;
(2) Requiring state and county agencies to provide the Director of Finance the license plate number or vehicle identification number in order to be exempt from the payment of the filing fee for the lien and encumbrance; and
(3) Making conforming amendments to the purpose section.
As affirmed by the records of votes of the members of your Committees on Transportation and International Affairs and Public Safety, Government Operations, and Military Affairs and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2224, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2224, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Transportation and International Affairs and Public Safety, Government Operations, and Military Affairs and Judiciary and Labor,
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____________________________ WILL ESPERO, Chair |
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____________________________ J. KALANI ENGLISH, Chair |
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____________________________ CLAYTON HEE, Chair |
