STAND. COM. REP. NO.74
Honolulu, Hawaii
, 2003
RE: S.B. No. 827
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 827 entitled:
"A BILL FOR AN ACT RELATING TO LAND COURT,"
begs leave to report as follows:
The purpose of this measure is to authorize and establish requirements for the deregistration of fee time share interests from Land Court.
American Resort Development Association, McCorriston Miller Mukai MacKinnon, LLP, Island Title, and Embassy Vacation Resorts testified in support of the measure. Eight individuals opposed the measure, and comments were submitted by the Judiciary.
This measure raises questions regarding the efficiency of the Torrens systems of title registration, adopted in Hawaii in 1903, for the registration of fee time share interests, a form of land ownership that was created after the establishment of the Land Court system. Proponents of the measure argue that Land Court recording requirements are time consuming, cumbersome, and costly as applied to the recordation of fee time share interests, of which there are typically thousands in a single time share plan. Additionally, the necessity of recording large numbers of transactions for time share plans places a heavy burden on the Land Court, which recorded 326,000 documents in 2002, and is experiencing a fifteen per cent increase in filings.
Your Committee notes, however, that not all favor deregistration of fee time share interests. Opponents of this measure expressed concerns about the ability to have land deregistered without adjudication by the court.
As this measure raises complex issues that require further review and discussion, your Committee has inserted therein a delayed effective date of July 1, 2050, to facilitate this process. In addition, your Committee made technical amendments to the measure for purposes of clarity, style, consistency, and to reflect preferred drafting style.
As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 827, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 827, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
____________________________ RON MENOR, Chair |
||