STAND. COM. REP. 1501

Honolulu, Hawaii

, 2003

RE: S.B. No. 373

S.D. 1

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 373, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM PROPERTY REGIMES,"

begs leave to report as follows:

The purpose of this bill is to establish a deadline after which the purchaser of a condominium unit in a nonjudicial foreclosure becomes responsible for the payment of common expenses.

Your Committee received testimony in support of this measure from the Mortgage Bankers Association of Hawaii. The Hawaii Council of Associations of Apartment Owners submitted testimony in support of the intent and purpose of this measure.

Your Committee finds that this bill fills a gap in statutory provisions because the condominium property regime law has not been updated to reflect the alternative power of sale foreclosure process.

Your Committee has amended this measure by:

(1) Changing the word "auction" to "public sale" for consistency with terminology in chapter 667, Hawaii Revised Statutes;

(2) Specifying that this measure refers to power of sale foreclosure under section 667-5, Hawaii Revised Statutes, as opposed to the rarely used Alternate Power of Sale Foreclosure Process under Part II of chapter 667, Hawaii Revised Statutes;

(3) Rewording "party to the hearing" to "person who appears at the hearing" clarifying that it refers to bidders and others who may appear at the hearing on a motion for confirmation of sale without being a party to the foreclosure action;

(4) Including "or order" in the phrase "reconsideration of the motion or order" to reflect different stages where reconsideration of a court's ruling might be sought;

(5) Adding the word "proposed" in the phrase "objects to the form of the proposed order" to reflect court rules allowing objections to the form of a proposed order;

(6) Rephrasing "debtor who is a party to the hearing or foreclosure" for clarity as "debtor or mortgagee"; and

(7) Making technical, nonsubstantive changes for clarity and style.

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. 373, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 373, S.D. 1, H.D. 2.

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

 

____________________________

ERIC G. HAMAKAWA, Chair