Common Law Liens

Requires the pleading header in a claim or lien against a public
officer or employee based on performance or non-performance of
official duties to designate that the claim of lien is directed
against a public official; authorizes bureau of conveyances to
reject a claim of lien presented without a state or federal court
order; imposes criminal penalties for knowing submission of an
invalid court order.  (SD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 507D-5, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "[[]507D-5[]]  Liens against public officers and employees.
 4 (a)  Any claim of lien against a federal, state, or county
 5 officer or employee based on the performance or nonperformance of
 6 that officer's or employee's duties shall designate in the
 7 pleading header that the claim is directed to a federal, state,
 8 or county officer or employee, and shall be invalid unless
 9 accompanied by a [specific] certified order from a state or
10 federal court of competent jurisdiction authorizing the filing of
11 such lien [or unless a specific statute authorizes the filing of
12 such lien].
13      (b)  The registrar shall not accept for filing a claim for
14 nonconsensual common law lien unless the claim is accompanied by
15 a certified state or federal court order authorizing the filing
16 of the lien."
17      SECTION 2.  Section 507D-7, Hawaii Revised Statutes, is
18 amended to read as follows:

Page 2                                                     2649
                                     H.B. NO.           H.D. 1
                                                        S.D. 1

 1      "507D-7 Expungement of invalid lien; penalties; sanctions
 2 for frivolous filings.(a)  If the circuit court finds the
 3 purported lien invalid, it shall order the registrar to expunge
 4 the instrument purporting to create it, and order the lien
 5 claimant to pay actual damages, costs of suit, and reasonable
 6 attorneys' fees.  This order shall be presented to the registrar
 7 for recordation and shall have the effect of voiding the lien
 8 from its inception.  If the circuit court finds the purported
 9 lien is frivolous, the prevailing party in any action brought
10 under section 507D-4 shall be awarded costs of suit, reasonable
11 attorneys' fees, and either actual damages or $5,000, whichever
12 is greater.  The foregoing award shall be made in the form of a
13 joint and several judgment issued in favor of the prevailing
14 party and against each lien claimant and also against each person
15 who owns or controls the activities of the lien claimant if the
16 lien claimant is not a natural person.
17      (b)  If the circuit court finds the purported lien is
18 frivolous, upon application of a party in interest, the
19 registrar, or the government counsel representing the government
20 officer or employee affected by the purported lien, the court may
21 also issue appropriate injunctive relief against the lien
22 claimant to preclude further filings of any kind with the
23 registrar for a period of five years, unless that person obtains

Page 3                                                     2649
                                     H.B. NO.           H.D. 1
                                                        S.D. 1

 1 leave of court to file another instrument with the registrar.
 2 The order shall be enforced in the manner for enforcement of
 3 injunctions.  This order may be presented to the registrar for
 4 recordation.  Proceedings under this subsection shall not
 5 preclude a person from proceeding under subsection (a) or section
 6 507D-4 and recovering damages, penalties, costs, and attorneys'
 7 fees.
 8      (c)  Any person who knowingly submits for filing an invalid
 9 court order in support of a nonconsensual common law lien against
10 a federal, state, or county officer or employee, shall be guilty
11 of tampering with a government record under section 710-1017.
12      [(c)] (d)  Nothing in this chapter shall inhibit or preclude
13 any party in interest from seeking any other common law,
14 statutory, or other equitable remedy."
15      SECTION 3.  This Act does not affect rights and duties that
16 matured, penalties that were incurred, and proceedings that were
17 begun, before its effective date.
18      SECTION 4.  Statutory material to be repealed is bracketed.
19 New statutory material is underscored.
20      SECTION 5.  This Act shall take effect upon its approval.