SB 115: RELATING TO ATTACHMENT AND EXECUTION OF REAL PROPERTY.

A BILL FOR AN ACT

RELATING TO ATTACHMENT AND EXECUTION OF REAL PROPERTY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that it has not increased the real property exemption amount from attachment or execution since 1978, and since that time inflation has risen by three hundred per cent.  Therefore, the purpose of this Act is to increase the exemption amount up to current valuation standards.

     SECTION 2.  Section 651-91, Hawaii Revised Statutes, is amended by amending the definition of "head of a family" to read as follows:

     ""Head of a family" includes within its meaning:

     (1)  [A man and woman] Two individuals when married, except as provided in section 651-93;

     (2)  Every individual who is residing on the real property and who has under that individual's care or maintenance, either:

          (A)  That individual's minor child, or minor grandchild, or the minor child of that individual's deceased [wife or husband;] spouse;

          (B)  A minor [brother or sister,] sibling or the minor child of a deceased [brother or sister;] sibling;

          (C)  A [father, mother, grandfather, or grandmother;] parent or grandparent;

          (D)  The [father, mother, grandfather, or grandmother] parent or grandparent of a deceased [husband or wife;] spouse; or

          (E)  An unmarried [brother, sister,] sibling or any other of the relatives mentioned in this paragraph who have attained the age of majority; and

     (3)  Head of household as defined in section 2(b) of the Internal Revenue Code of 1954, as amended."

     SECTION 3.  Section 651-92, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Real property shall be exempt from attachment or execution as follows:

     (1)  An interest in one parcel of real property in the State of Hawaii, of a fair market value not exceeding [$30,000,] $90,000, owned by the defendant who is either the head of a family or an individual sixty-five years of age or older[.]; or

     (2)  An interest in one parcel of real property in the State of Hawaii, of a fair market value not exceeding [$20,000,] $90,000, owned by the defendant who is a person.

The fair market value of the interest exempted in paragraph (1) or (2) shall be determined by appraisal and shall be an interest which is over and above all liens and encumbrances on the real property recorded [prior to] before the lien under which attachment or execution is to be made.  Not more than one exemption shall be claimed on any one parcel of real property even though more than one person residing on [such] the real property may otherwise be entitled to an exemption.

     Any claim of exemption under this section made before [May 27, 1976,] January 1, 2026, shall be deemed to be amended on [May 27, 1976,] January 1, 2026, by increasing the exemption to the amount permitted by this section on [May 27, 1976,] January 1, 2026, to the extent that [such] the increase does not impair or defeat the right of any creditor who has executed upon the real property prior to [May 27, 1976.] January 1, 2026."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

Real Property; Exemption; Attachment; Execution

Description:

Increases the real property exemption amount for attachment or execution.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to attachment and execution of real property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that it has not increased the real property exemption amount from attachment or execution since 1978, and since that time inflation has risen by three hundred per cent.  Therefore, the purpose of this Act is to increase the exemption amount up to current valuation standards.

     SECTION 2.  Section 651-92, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Real property shall be exempt from attachment or execution as follows:

     (1)  An interest in one parcel of real property in the State of Hawaii, of a fair market value not exceeding [$30,000,] $90,000, owned by the defendant who is either the head of a family or an individual sixty-five years of age or older[.]; or

     (2)  An interest in one parcel of real property in the State of Hawaii, of a fair market value not exceeding [$20,000,] $60,000, owned by the defendant who is a person.

The fair market value of the interest exempted in paragraph (1) or (2) shall be determined by appraisal and shall be an interest which is over and above all liens and encumbrances on the real property recorded [prior to] before the lien under which attachment or execution is to be made.  Not more than one exemption shall be claimed on any one parcel of real property even though more than one person residing on [such] the real property may otherwise be entitled to an exemption.

     Any claim of exemption under this section made before [May 27, 1976,] January 1, 2026, shall be deemed to be amended on [May 27, 1976,] January 1, 2026, by increasing the exemption to the amount permitted by this section on [May 27, 1976,] January 1, 2026, to the extent that [such] the increase does not impair or defeat the right of any creditor who has executed upon the real property prior to [May 27, 1976.] January 1, 2026."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Real Property; Exemption; Attachment; Execution

Description:

Increases the real property exemption amount for attachment or execution.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 63

Honolulu, Hawaii

RE:    S.B. No. 115

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 115 entitled:

"A BILL FOR AN ACT RELATING TO ATTACHMENT AND EXECUTION OF REAL PROPERTY,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the real property exemption amount for attachment or execution.

     Your Committee received testimony in support of this measure from three individuals.

     Your Committee received comments on this measure from the Hawaii Financial Services Association, Hawaii Credit Union League, Mortgage Bankers Association of Hawaii, Collection Law Section of the Hawaii State Bar Association, and Hawaii Bankers Association.

     Your Committee finds that the Legislature has not increased the real property exemption amount from attachment or execution since 1978.  Your Committee also finds that in that time, inflation has risen by three hundred percent, with housing prices rising even more than overall inflation.  Therefore, given the length of time since the last increase, your Committee believes that an increase in the real property exemption amount from attachment and execution up to current valuation standards is warranted.  Your Committee also finds that the increased amount for all classes should be $90,000, for simplicity, and to reflect the fact that housing prices have risen faster than inflation.

     Your Committee additionally finds that the existing definition of "head of a family" for purposes of attachment or execution uses outdated, gendered language which should be updated.

     Accordingly, your Committee has amended this measure by:

     (1)  Updating the definition of "head of a family" to be gender-neutral;

     (2)  Increasing the real property exemption amount from attachment and execution for a defendant who is not the head of a family or sixty-five years of age or older to $90,000; and

     (3)  Making technical, nonsubstantive amendments 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. 115, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 115, S.D. 1, and be referred to your Committee on Ways and Means.

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