STAND. COM. REP. NO. 2967

Honolulu, Hawaii

RE: S.B. No. 2227

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2227, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMERGENCY MANAGEMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Governor to suspend the mortgage foreclosure provisions of chapter 667, Hawaii Revised Statutes, for any property having substantial damage resulting from a disaster for which a state of emergency has been declared by the Governor.

Your Committee received testimony in support of this measure from one member of the Kauaʻi County Council; one member of the Maui County Council; Hawaiʻi State Association of Counties; Lāhainā Strong; UNITE HERE Local 5; We Are One, Inc.; Tagnawa; and forty-five individuals.

Your Committee received testimony in opposition to this measure from the Hawaiʻi Association of REALTORS, Hawaii Bankers Association, and Mortgage Bankers Association of Hawaii.

Your Committee received comments on this measure from the Hawaii Credit Union League and Hawaii Financial Services Association.

Your Committee finds that federal regulations allow homeowners a ninety-day forbearance on mortgage payments in the aftermath of a natural disaster. After this period passes, however, homeowners are required to resume payments and cover the ninety days of missed payments. This measure will provide the Governor with express authority to suspend mortgage foreclosure provisions, which will provide stability and security to victims of natural disasters and emergencies in the State.

Your Committee has amended this measure by:

(1) Clarifying that the Governor is authorized to suspend the mortgage foreclosure provisions of chapter 667, Hawaii Revised Statutes, for any property having substantial damage of $10,000 or more resulting from a disaster for which a state of emergency has been declared by the Governor; and

(2) Making a technical, nonsubstantive amendment 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. 2227, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2227, S.D. 2.

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

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KARL RHOADS, Chair