HI SB2149

Prohibits any person from filing records with the filing office that they know or reasonably should know are unauthorized, unrelated to valid commercial transactions or court judgments, and filed with intent to harass or defraud.

Allows injured persons to sue violators for actual damages or up to $10,000, plus reasonable attorney's fees, court costs, investigative expenses, and exemplary damages at the court's discretion.

Establishes administrative process where debtors can file affidavits with the Lieutenant Governor claiming a record was fraudulently filed; the Lieutenant Governor reviews documentation and may terminate fraudulent records within 30 days.

Permits secured parties to challenge terminated records or request acceptance of rejected records through court action; courts can order reinstatement with the original filing date preserved.

Exempts regulated financial institutions from fraudulent filing provisions but allows Lieutenant Governor to request documentation; applies to records filed within two years before the act's effective date.