STAND. COM. REP. NO. 2440

Honolulu, Hawaii

RE:    S.B. No. 2477

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Judiciary and Labor and Commerce and Consumer Protection, to which was referred S.B. No. 2477 entitled:

"A BILL FOR AN ACT RELATING TO LAND COURT,"

beg leave to report as follows:

     The purpose and intent of this measure is to authorize the use of a master certificate of title for common interest communities to simplify and streamline the operation of the Land Court.  Specifically, this measure:

     (1)  Establishes procedures for a master certificate of title for the Assistant Registrar of the Land Court to carry out upon the recording of a declaration creating a common interest community;

     (2)  Establishes procedures for a master certificate of title for the Assistant Registrar to carry out upon the recording of an amendment or supplement to the governing documents of an existing common interest community;

     (3)  Establishes the effect of a master certificate of title of a common interest community;

     (4)  Sets the requirements for the contents of a master certificate of title of a common interest community; and

     (5)  Adds definitions of "association", "common interest community", "governing documents", "master certificate of title", and "unit".

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Community Association Institute, and five individuals.  The Judiciary submitted comments.

     Your Committees find that existing law requires that any amendment to the documents governing a condominium or planned community shall be noted on the certificate of title for each unit.  This is a costly and time-consuming process for the Land Court.  This measure authorizes the use of a master certificate of title for common interest communities to list encumbrances of general application and eliminates the need to change the certificate of title for each unit to reflect any changes in the encumbrances of general application.  As a result, the certificates of title for each unit will cross reference the master certificate of title.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Labor and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2477 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Labor and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ CLAYTON HEE, Chair