STAND. COM. REP. NO. 2014

Honolulu, Hawaii

RE:    S.B. No. 2660

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2660 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to make permanent the voluntary deregistration process for fee non-time share interests by removing the sunset date of Act 119, Session Laws of Hawaii 2013, as amended by Act 47, Session Laws of Hawaii 2014.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources and American Resort Development Association Hawai‘i.

     Your Committee finds that Act 120, Session Laws of Hawaii 2009, deregistered fee simple time share transactions from the Land Court system and established a procedure to move these transactions to the regular system in the Bureau of Conveyances.  This process was intended to ease the backlog of recordings at the Land Court.

     Your Committee further finds that Act 119, Session Laws of Hawaii 2013, separated the voluntary deregistration of fee non-time share interests from the voluntary deregistration of time share interests under Part II of Chapter 501, Hawaii Revised Statutes, pursuant to Act 120, Session Laws of Hawaii 2009, and made the deregistration mandatory and permanent.  Act 119, Session Laws of Hawaii 2013, also preserved a sunset date of December 31, 2014, for the deregistration of fee non-time share interests.  However, prior to December 31, 2014, Act 47, Session Laws of Hawaii 2014, was enacted to extend the sunset for voluntary deregistration and transfer of fee non-time share interests to December 31, 2015.  Your Committee finds that repealing the sunset provision of Act 119, Session Laws of Hawaii 2013, as amended by Act 47, Session Laws of Hawaii 2014, as provided by this measure, will permanently establish the streamlined process for deregistration and transfer of fee non-time share interests.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2660 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair