STAND. COM. REP. NO. 339-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1861

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred H.B. No. 1861 entitled:

"A BILL FOR AN ACT RELATING TO THE COUNTIES,"

begs leave to report as follows:

The purpose of this measure is to authorize counties to sell property through non-judicial foreclosure as a way to collect unpaid civil fines, subject to certain conditions.

Your Committee received testimony in support of this measure from the Department of Customer Services of the City and County of Honolulu; Department of Planning and Permitting of the City and County of Honolulu; and one individual. Your Committee received testimony in opposition to this measure from the Grassroot Institute of Hawaii; Chamber of Sustainable Commerce; and four individuals.

Your Committee finds that this measure would allow the counties to enforce the law against repeat and egregious offenders, which generally accrue the largest amounts in fines. Your Committee further finds that the counties currently have and exercise the authority to use the non-judicial foreclosure process for the collection of real property tax liens, which this measure would extend to the collection of liens on properties for civil fines.

Your Committee has amended this measure by:

(1) Requiring a county to sell the property at no less than the market value of similarly situated properties and requiring all revenues received from the sale that exceed the amount of the lien to be refunded to the property owner;

(2) Changing its effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1861, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1861, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair