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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: September 30, 2014 Re: Comm. No. 261/Bill No. 71 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 9:08 a.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Bill No. 71, transmitted by Council Member Brenda J. Ford, via Communication No. 261 dated <br /> April 25, 2013, amends Chapter 19, Article 5 of the Hawaii County Code 1983 (2005 Edition, as <br /> amended), relating to real property taxes, liens, foreclosures, and notice. <br /> The proposed bill reduces the number of years required to foreclose on a property for delinquent <br /> real property taxes from three to two years and relocates notice requirements previously placed in <br /> Section 19-38 into Section 19-40. <br /> On May 14, 2013, the Finance Committee postponed the measure to the call of the Chair. <br /> Council Member Ford expressed her support of the bill. She explained that if the foreclosure time <br /> was shortened from three to two years, the amount of delinquent taxes would be less than <br /> $3 million. <br /> The bill was referred to the Real Property Tax Stakeholders Task Force on November 5, 2013. <br /> As noted in Communication No. 261.1, the Real Property Tax Stakeholders Task Force reviewed <br /> Bill No. 71 on July 21, 2014 and September 8, 2014. The Task Force supports Bill No. 71 with <br /> amendments, and requests that it be placed on the September 30, 2014 Finance Committee agenda. <br /> In the course of the Finance Committee meeting on September 30, 2014, the Council amended <br /> Bill No. 71 with the contents of Comm. No. 261.2, proposed by Ms. Wille. These amendments <br /> amend the bill by adding additional language to Section 1, and also amend Section 19-38(a) by <br /> changing "shall"to "may." <br /> Several Council Member expressed their concerns with the bill. <br /> Both Council Members Wille and Ford, who support the bill, stated that the bill will give authority <br /> and discretion to the Finance Department to act sooner than later on delinquent accounts. <br /> Council Member Kern, who was in opposition of the bill, stated that the bill, as is, is not "broken." <br /> He noted that the Finance Department already works with delinquent accounts by implementing a <br /> payment plan and that the loss of revenue is secured by property. <br /> FC Report No. 195 <br />