STAND. COM. REP. NO. 2775

Honolulu, Hawaii

RE:    S.B. No. 2632

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2632, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FEE TIME SHARE INTERESTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to reduce the Land Court recording and registration backlog by:

(1)  Requiring new fee time share interests to be recorded in the regular system instead of Land Court;

(2)  Streamlining the process for updating certificates of title for remaining fee time share interests; and

(3)  Allowing the Bureau of Conveyances to charge a fee for the recording of time share interests deeds.

     Your Committee received written comments in support of this measure from the Judiciary; American Resort Development Association; and Wyndham Vacation Ownership.

     Your Committee finds that it is appropriate to exclude fee time share interests from the Land Court system.  Inclusion of fee time share interest in the Land Court system, for which it was not designed, along with the recent increase in time share purchases, has placed a burden on the system and were factors in causing the current backlog.  Requiring filing in the regular system will help to alleviate the backlog and expedite the recording of fee time share interests.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2632, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair