STAND. COM. REP. NO. 1307-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 3089

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3089, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CERTIFICATES OF CONVEYANCE,"

begs leave to report as follows:

The purpose of this measure is to allow counties to enact ordinances to require that a grantor of real property include in a conveyance document, conveyance instrument, or certificate of conveyance a statement indicating whether the county has determined that the real property described in the document, instrument, or certificate may be used for short-term rentals under the county's zoning or land use ordinances.

The Department of Planning and Permitting of the City and County of Honolulu supported this measure. The Hawaii Association of REALTORS opposed this measure. The Tax Foundation of Hawaii offered comments on this measure.

A member of your Committee has expressed concern that the provisions of this measure will not accomplish the goal of informing potential homebuyers whether they can legally use a home as an income-producing investment. Specifically, because circumstances often change, a recorded statement on whether a property may be used for short-term rentals may not be accurate when the property is later sold to a subsequent homebuyer.

Your Committee has amended this measure by changing its effective date to January 1, 2050, to promote further discussion.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3089, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3089, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

TOM BROWER, Chair