STAND. COM. REP. NO.  1737

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1352

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1352, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to reduce the backlog in land court recording and registration by:

     (1)  Transferring fee simple time share interest registration from the Land Court System to the Regular System, and authorizing the Registrar of the Bureau of Conveyances (Bureau) to accept, in the Regular System, electronic instruments in lieu of original instruments with original signatures;

     (2)  Authorizing the Department of Land and Natural Resources to establish a $5 transaction fee for services rendered relating to automation; and

     (3)  Requiring the Bureau to implement a pilot program for an integrated electronic filing system for electronic recordation of fee time share interests.

     The Hawaii Association of REALTORS, Wyndham Worldwide, PAHIO Development, Inc., American Resort Development Association-Hawaii, and Starwood Vacation Ownership supported this bill.  A concerned individual opposed this bill.  The Department of Land and Natural Resources, Hawaii Government Employees Association, and a concerned individual offered comments.

     Your Committee has amended this bill by:

     (1)  Allowing owners of land registered in the Land Court System to deregister the land and transfer registration to the Regular System upon submission of a written request including proof of title insurance and a waiver of future title claims against the State;

     (2)  Allowing documents to be filed electronically in the Land Court System;

     (3)  Deleting the sunset date of the $5 transaction fee;

     (4)  Changing the dates of the two-year pilot program for the electronic recordation of fee time share interests so that it will run from July 1, 2012, to December 31, 2014, rather than from July 1, 2010, to December 31, 2012;

     (5)  Changing the effective date to July 1, 2020, to encourage further discussion; and

     (6)  Making technical, nonsubstantive changes for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1352, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1352, S.D. 2, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair