STAND. COM. REP. NO. 1118

Honolulu, Hawaii

RE:    H.B. No. 424

       H.D. 1

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 424, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TIMESHARE CONVEYANCES,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the Governor to appoint commissioners of deeds to administer oaths, take acknowledgements, and take proofs of execution outside of the United States in connection with the execution of conveyance documents relating to time shares.

     This measure also:

     (1)  Requires commissioners of deeds to provide a written notice to each person whose signature is witnessed or acknowledged by the commissioner; and

     (2)  Establishes bonding requirements, penalties, and liabilities for commissioners of deeds.

     Your Committee received written comments in support of this measure from Disney Vacation Development, Inc., and SVO Pacific, Inc.

     Your Committee finds that deeds of time share interests in Hawaii time share plans are required to be notarized in order to be recordable.  Your Committee further finds that this requirement can be difficult to satisfy in jurisdictions outside of the United States in which notaries public are not common.  Your Committee believes that, by authorizing the Governor to appoint commissioners of deeds, this measure will help streamline the process for consumers located outside of the United States who wish to purchase time share property in Hawaii.

     Your Committee has amended this measure by:

     (1)  Appropriating unspecified funds for expenses incurred by the Office of the Lieutenant Governor related to commissioners of deeds;

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

     (3)  Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     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 H.B. No. 424, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 424, H.D. 1, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair