HB1360

SECTION 1. The legislature finds that Hawaii's dual land registry systems, the land court system and regular system, create inefficiencies, confusion, and administrative burdens. The legislature further finds that land ownership and development are critical to Hawaii's economy, environment, and culture, so it is imperative to modernize the systems to enhance accessibility, transparency, accuracy, and efficiency.

The purpose of this Act is to direct the department of land and natural resources to:

(1) Conduct a comprehensive review of the existing land registration systems and transition to a single, unified registry system, implementing blockchain technology to enhance the integrity and security of the system;

(2) Oversee the digitization of all land records into a centralized, searchable online database; and

(3) Ensure equitable access to land records, establish a fee structure for accessing records, and conduct public outreach on how to use the new system and access records.

SECTION 2. Definitions. As used in this Act:

"Blockchain technology" means a decentralized digital ledger technology that securely records and verifies transactions.

"Digitization" means the conversion of physical land records into electronic formats for storage and access.

"Land registry system" means the system used for recording, maintaining, and accessing land ownership, transactions, and other property-related information.

SECTION 3. Consolidation of land registry systems. (a) The land court system and regular system shall be consolidated into a single, unified land registry system to streamline operations and enhance user experience.

(b) The department of land and natural resources, in coordination with the bureau of conveyances, shall:

(1) Conduct a comprehensive review of both systems to identify redundancies and inefficiencies;

(2) Establish unified standards and procedures for recording, maintaining, and accessing land records; and

(3) Transition all existing land records into the unified system no later than June 30, 2030.

(c) The unified land registry system shall retain features of both systems, including title certification and public recording, to preserve existing legal protections.

SECTION 4. Digitization of land records. (a) The department of land and natural resources shall oversee the digitization of all land records, including historical and current documents, into a centralized, searchable online database.

(b) The database shall:

(1) Be accessible to the public, subject to privacy and security measures;

(2) Provide user-friendly search functions, including searches by parcel number, owner name, and transaction history; and

(3) Include a secure portal for submitting and accessing records electronically.

(c) The department of land and natural resources shall prioritize the digitization of high-risk or frequently accessed records to minimize disruptions during the transition period.

SECTION 5. Implementation of blockchain technology. (a) The department of land and natural resources shall explore and implement blockchain technology to enhance the integrity and security of the land registry system.

(b) The blockchain-based system shall:

(1) Record all land transactions and changes to ownership in a tamper-proof and transparent manner;

(2) Provide a unique digital identifier for each parcel of land; and

(3) Allow for real-time verification of ownership and transaction history.

(c) The department of land and natural resources may partner with technology providers to develop and deploy the blockchain system in a cost-effective and efficient manner.

SECTION 6. Public access and transparency. (a) The unified land registry system shall ensure equitable access to land records for all residents, businesses, and government entities.

(b) The department of land and natural resources shall establish a fee structure for accessing records that is affordable and consistent with public interest.

(c) The department of land and natural resources shall conduct public outreach to educate residents on how to use the new system and access land records.

SECTION 7. (a) The department of land and natural resources shall submit an interim report of its findings and recommendations, including any proposed legislation, to the legislature no later than July 1, 2026, that includes the following:

(1) Status of its consolidation and digitization efforts;

(2) Implementation of blockchain technology;

(3) Public feedback and challenges encountered; and

(4) Financial expenditures and remaining budget.

(b) The department of land and natural resources shall submit a final report of its findings and recommendations, including any proposed legislation, upon the completion of the transition to the unified system.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $15,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 for digitizing land records, developing the unified land registry system, deploying blockchain technology, and conducting public outreach and education campaigns.

The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 9. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 10. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1360
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII