SB LRB 25-0338.

SECTION 1. The legislature finds that the State of Hawaii utilizes the regular system and the land court to record legal documents pertaining to the ownership of property. In general, property is recorded in either the regular system or the land court; however, in some circumstances property is recorded in both systems. The regular system and the land court have different requirements for recording documents. The land court creates barriers to access in the form of delay and increased expenses resulting from the complicated procedures and requirements in the land court. No new properties have been registered in the land court since 1989, which indicates sharp public preference for the regular system.

The legislature further finds that the regular system is a "race-notice" land registration system and does not make any independent determination about the priority or ownership of interests in the property. This is one of the reasons why the regular system is preferred by the public. On the other hand, the land court system is a "Torrens" system of land registration, which means one must "race" to the land court to record a document ahead of another possible prior claimant to the property.

The legislature also finds that Act 120, Session laws of Hawaii 2009, amended chapter 501, Hawaii Revised Statutes, in an attempt to ease the backlog in the bureau of conveyances. Among other things, the amendments allowed owners of interest in land registered in the land court system to transfer the interest to the regular system.

The purpose of this Act is to simplify the land registration process by repealing the land court system and transitioning all recorded documents to the regular system.

SECTION 2. Starting on January 1, , no new applications for registration of title shall be made in the land court.

SECTION 3. No later than December 31, , all registered owners of an interest in property registered in the land court shall initiate deregistration of the property pursuant to part II of chapter 501, Hawaii Revised Statutes.

SECTION 4. The land court shall inform all registered owners of any interest in property registered in land court of the requirement under section 3 of this Act.

SECTION 5. The subpart entitled "Land Court; Personnel", of chapter 501, Hawaii Revised Statutes, consisting of sections 501-1 to 501-13, Hawaii Revised Statutes, is repealed.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the land court to inform registered owners of any interest in property registered in land court of the requirement for deregistration of property.

The sums appropriated shall be expended by the land court for the purposes of this Act.

SECTION 7. All rights, powers, functions, and duties of the land court are transferred to the bureau of conveyances. All employees who occupy civil service positions and whose functions are transferred to the bureau of conveyances by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The chairperson of the board of land ad natural resources may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 8. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the land court relating to the functions transferred to the department of land and natural resources shall be transferred with the functions to which they relate.

SECTION 9. This Act shall take effect on July 1, 2025; provided that sections 5, 7, and 8 shall take effect on June 30, .

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	644
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII