STAND. COM. REP. NO. 2109

Honolulu, Hawaii

RE:    S.B. No. 2910

       S.D. 1

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. 2910 entitled:

"A BILL FOR AN ACT RELATING TO TIME SHARE COMMISSIONERS OF DEEDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Clarify the Lieutenant Governor's rulemaking authority relating to Commissioners of Deeds;

     (2)  Authorize the Lieutenant Governor to assess and collect fees and administrative fines relating to Commissioners of Deeds;

     (3)  Clarify that the Lieutenant Governor is responsible for the Commissioners of Deeds program;

     (4)  Increase the surety bond requirement for Commissioners of Deeds from $1,000 to $10,000; and

     (5)  Appropriate funds for the establishment and administration of the Commissioners of Deeds program.

     Your Committee received testimony in support of this measure from the Office of the Lieutenant Governor, American Resort Development Association – Hawai‘i, and Wyndham Vacation Ownership.

     Your Committee finds that Act 277, Session Laws of Hawaii 2013 (Act 277), established the Commissioners of Deeds program within the Office of the Lieutenant Governor.  The program includes a process for the Governor to appoint individuals to serve as Commissioners of Deeds to administer oaths, take acknowledgments, and take proofs of execution outside of the United States in connection with the execution of conveyance documents relating to a time share interest, any property subject to a time share plan, or the operation of a time share plan covering any property located within Hawaii and includes protections for consumers wishing to purchase a time share property in Hawaii.

     Your Committee further finds that a working group, convened to discuss and analyze the implementation of Act 277, has determined that additional legislation and authorization are necessary to fully implement the Commissioners of Deeds program.  Accordingly, this measure addresses the issues identified by the working group and will provide the Office of the Lieutenant Governor with the authority and clarification needed to properly implement Act 277.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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. 2910, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2910, S.D. 1, 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,

________________________________

ROSALYN H. BAKER, Chair