SB3089

SECTION 1. Section 247-6, Hawaii Revised Statutes, is amended to read as follows:

"§247-6 Certificate of conveyance required. (a) Any party, with the exception of governmental bodies, agencies, or officers, to a document or instrument subject to this chapter, or the party's authorized representative, shall file, in the manner and place which the director of taxation shall prescribe, a certificate of conveyance setting forth the actual and full consideration of the property transferred, including any lien or encumbrance on the property, and any other facts as the director may by rules prescribe. The certificate of conveyance shall be verified by a written declaration thereon that the statements made therein are subject to the penalties in section 231-36. The certificate shall be appended to the document or instrument made subject to this chapter and shall be filed with the director simultaneously with the aforementioned document or instrument for the imprinting of the required seal or seals.

(b) No certificate is required to be filed for any document or instrument made exempt by section 247-3, except that in the following situations, a certificate shall be filed in the manner and place that the director shall prescribe, within ninety days after the transaction or prior to the recordation or filing of the document or instrument with the registrar of conveyances or the assistant registrar of the land court or after the ninety-day period, recordation, or filing as the director shall prescribe:

(1) For any document or instrument described under section 247-3(3), any party to the document or instrument shall file a certificate declaring that the document or instrument merely confirms or corrects a deed, lease, sublease, assignment, transfer, or conveyance previously recorded or filed[.]; provided that for any document or instrument described in section 247-3(3), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(2) For any document or instrument described under section 247-3(4), any party to the document or instrument shall file a certificate declaring the amount of the nominal consideration paid and marital or parental relationship of the parties[.]; provided that for any document or instrument described in section 247-3(4), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(3) For any document or instrument described under section 247-3(5), any party to the document or instrument shall file a certificate declaring the reasons why the consideration is $100 or less[.]; provided that for any document or instrument described in section 247-3(5), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(4) For any document or instrument described in section 247-3(6), any party to the document or instrument shall file a certificate declaring that the document or instrument is made pursuant to an agreement of sale, and where applicable, an assignment or assignments of agreements of sale[.]; provided that for any document or instrument described in section 247-3(6), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(5) For any document or instrument described under section 247-3(8), any person made a party to the document or instrument as grantee, assignee, or transferee shall file a certificate declaring the full and actual consideration of the property transferred[.]; provided that for any document or instrument described in section 247-3(8), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(6) For any document or instrument described under section 247-3(11), any party to the document or instrument shall file a certificate declaring each owner's:

(A) Undivided interest in the real property and the value of that interest before partition; and

(B) Proportionate interest and the value of that interest after partition[.];

provided that for any document or instrument described in section 247-3(11), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(7) For any document or instrument described under section 247-3(12), any party to the document or instrument shall file a certificate declaring that the document or instrument is made pursuant to an order of the court and containing the court case number[.]; provided that for any document or instrument described in section 247-3(12), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(8) For any document or instrument described under section 247-3(13), any party to the document or instrument shall file a certificate declaring that the document or instrument conveys real property from a testamentary trust to a trust beneficiary[.]; provided that for any document or instrument described in section 247-3(13), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(9) For any document or instrument described under section 247-3(14), any party to the document or instrument shall file a certificate declaring that the document or instrument conveys real property from the grantor to a grantor's revocable living trust or from a grantor's revocable living trust to the grantor[.]; provided that for any document or instrument described in section 247-3(14), the county in which the real property is located may require the transferor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances.

(c) The form of the certificate and the procedure to be followed for the submission of the certificate shall be prescribed by the director[.]; provided that the county in which the real property is located may enact ordinances requiring the grantor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances; provided further that the county in which the real property is located shall prescribe the language to be included on the certificate and the procedures to follow if the county enacts such an ordinance.

(d) Notwithstanding the foregoing, where the director deems it impracticable to require the filing of a certificate or certificates or to obtain the signatures of any or all parties to a certificate or certificates required under this section, the director may, in the director's discretion, waive the requirement of filing the certificate or certificates or of securing the signature of any or all parties to the certificate or certificates.

(e) No document or instrument, on account of which a certificate is required to be filed with the office of the director under this section, shall be accepted for recordation or filing with the registrar of conveyances or the assistant registrar of the land court, unless the certificate has been duly filed.

(f) Within twenty-one business days after the end of each week, or as soon thereafter as possible, the director of taxation shall provide to the administrator of each county's real property assessment division, without charge, an image of all certificates of conveyance that were filed. For each certificate of conveyance, the image shall include the following:

(1) Document number;

(2) Date of the filing;

(3) Name of grantor and grantee;

(4) Tax map key number;

(5) Location of the real property by island; and

(6) Address for real property assessment notice and tax bill.

(g) A county in which the real property is located may enact an ordinance requiring the grantor to include a statement specifying the county's determination as to whether the real property described in the document or instrument may be used to conduct short-term rentals in accordance with the county's zoning or land use ordinances. A county ordinance requiring the inclusion of a statement in the certificate of conveyance shall include a definition of "short term rental"."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2019.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3089
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII