STAND. COM. REP. NO. 485

Honolulu, Hawaii

RE:    S.B. No. 987

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Water and Land, to which was referred S.B. No. 987 entitled:

"A BILL FOR AN ACT RELATING TO RECORDATION TRANSACTION FEES,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Expand the use of the transaction fee authorized under Act 120, Session Laws of Hawaii 2009, to include purchases of software, project management and implementation, workflow improvements, and services related to the management, archiving, preservation, and accessibility of records at the Bureau of Conveyances and the Office of the Assistant Registrar of the Land Court; and

     (2)  Clarify that the transaction fee authorized under Act 120, Session Laws of Hawaii 2009, as amended by this measure, shall be repealed on the effective date of administrative rules adopted by the Department of Land and Natural Resources that include the establishment of a transaction fee for each recording in the Bureau of Conveyances and in the Office of the Assistant Registrar of the Land Court, or on July 1, 2022, whichever occurs first.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Hawaii Land Title Association; Title Guaranty of Hawaii, Inc.; and five individuals.

     Your Committee finds that because of the transaction fee authorized by Act 120, Session Laws of Hawaii 2009, the Bureau of Conveyances ("Bureau") has significantly improved the automation and integrity of the recording process, established web and digital access to parts of the Bureau's database and records, and created the portal and process for the electronic recording of documents.  Your Committee finds that expanding the authorized use of the transaction fee will address evolving issues facing the Bureau, including the need to improve digitization, resolve shortfalls with the current land records management system, improve workflow processes for records certification, and preserve physical records.  Your Committee further finds that the public will benefit from the continued modernization of the operations within the Bureau and the Office of the Assistant Registrar of the Land Court.

     As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 987 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 Water and Land,

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KARL RHOADS, Chair