Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1267
                                        H.D. 1
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1267, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this measure is to make general amendments to
the alternate power of sale foreclosure process in Part II,
Chapter 667, Hawaii Revised Statutes, in order to fine-tune the
alternate power of sale foreclosure process.

     The Office of Consumer Protection and Hawaii Financial
Services Association presented testimony in support of the
measure.  An individual presented comments and amendments on the
measure, and the Legal Aid Society of Hawaii presented testimony
in opposition to the measure.  

     Although not present at the hearing AARP, the Hawaii Credit
Union League, the Hawaii Bankers Association, the Hawaii Council
of Association of Apartment Owners, Security Title Corporation,
Title Guaranty of Hawaii, Inc., the Community Associations
Institute, Mortgage Bankers Association of Hawaii and six
individuals submitted written testimony in support of the

     Your Committee finds that Act 122, 1998 Session Laws of
Hawaii (Act), which established the alternate power of sale
foreclosure process, reflected the great efforts of the community

                                   STAND. COM. REP. NO. 1097
                                   Page 2

to reform and streamline non-judicial foreclosure procedures in
the State.  By all accounts, the Act has successfully clarified
and streamlined the non-judicial foreclosure procedures while
protecting individual property owners rights to due process.  At
the same time, opportunities still remain to make needed
improvements.  Your Committee further finds that this measure
would fine-tune the process established by the Act.

     Your Committee has amended this measure to:

     (1)  Set a deadline of January 1, 2001 for mortgagees to
          prepare the public information material required by
          proposed amendments to section 667-41;

     (2)  Add an option for mortgagees to send a copy of chapter
          667 part II, as amended, in lieu of the public
          information material, until January 1, 2001;

     (3)  Clarify requirements for the public information
          material to be prepared by the mortgagees;

     (4)  Reduce the time a delinquent borrower has to bring a
          loan current from sixty to thirty days;

     (5)  Reduce the time when a foreclosure auction will be held
          after public notice is given, from sixty to forty-five

     (6)  Repeal the 1874 non-judicial foreclosure law, as
          amended, effective January 1, 2001; and 

     (7)  Insert a savings clause so that this measure will not
          affect foreclosure proceedings instituted prior to its
          effective date.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1267, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1267, H.D. 1, S.D. 1, and be referred to the
Committee on Judiciary.

                                   STAND. COM. REP. NO. 1097
                                   Page 3

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair