STAND. COM. REP. NO. 1178

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1082
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
S.B. No. 1082, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE BUREAU OF CONVEYANCES,"

begs leave to report as follows:

     The purpose of this bill is to provide for more efficient
operation by the Bureau of Conveyances (bureau) by replacing the
Bureau of Conveyances equipment modernization special fund with
the Bureau of Conveyances special fund, provide for deposit of a
portion of recordation fees into the general fund, and the
remainder of recordation fees and other fees into the special
fund, and authorize the bureau to pay for personnel, equipment
and improvements necessary for modernization of the recording
system.  

     Your Committee received testimony as follows:

     1.   Board of Land and Natural Resources, in support; 

     2.   Hawaii Association of Realtors, in opposition; and

     3.   Tax Foundation of Hawaii, offering comment.  

     Your Committee finds that an income stream from existing
fees will give the Bureau of Conveyances a greater level of self-
sufficiency and will enable the funding of needed modernization
of the land recordation system.  The current fiscal condition of
the state, however, requires that the general fund receive $23 of
the $25 recordation fee.  

     Your Committee revised the bill by:  


 
                                 STAND. COM. REP. NO. 1178
                                 Page 2

 
     1.   Providing that the general fund receive $23 for each
          document recorded at the bureau; 

     2.   Adding provisions for the bureau to change the fees
          charged for microfilm duplication and removing
          reference to deposit into the general fund; 

     3.   Removing the provisions for deposit of conveyance taxes
          into the bureau special fund; 

     4.   Changing the appropriation amount to $1.9 million; 

     5.   Changing the effective date to June 29, 1999 for the
          establishment of the bureau special fund and the
          transfer of funds from the bureau equipment
          modernization special fund to the bureau special fund;
          and 

     6.   Making technical, non-substantive changes for the
          purposes of style and clarity.  

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee is in accord with the intent and purpose of S.B.
No. 1082, S.D. 2, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1082, S.D.
2, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water and Land
                                   Use,



                                   ______________________________
                                   Romy M. Cachola, Chair