SB2954

SECTION 1. The legislature finds that a sound policy of cost recovery and user fees for public services for records management and conveyance in the State is crucial to ensure efficient and reliable services to the public. With the unique and specialized work performed by the bureau of conveyances, and given its continuing workforce shortages, increasing automation and operational advancements are needed to support the staff and continue delivering quality service to the State.

The legislature further finds that the establishment of user fees for document recordation services of the bureau of conveyances ensures the integrity of records of the regular system and land court system and sustains services provided by the bureau of conveyances and office of the assistant registrar of the land court for records management and delivery, while avoiding the need to establish additional revenue sources to fund these vital services.

The legislature also finds that there is a fee discrepancy between the regular system and land court system, even though the work required to handle recordation services is identical.

The purpose of this Act is to support efficient, equitable, and reliable services for conveyance transactions and records in the State by, beginning on January 1, 2025:

(1) Statutorily establishing a transaction fee for each recording in the bureau of conveyances and land court for certain services rendered by the bureau of conveyances;

(2) Authorizing the board of land and natural resources to adopt, amend, or repeal administrative fees under chapters 501 and 502, Hawaii Revised Statutes, separate from the administrative rulemaking process;

(3) Amending the authorized uses of moneys in the bureau of conveyances special fund; and

(4) Repealing language that required fees for the use of microfilms of documents recorded in the bureau of conveyances to be established by the department of land and natural resources by rules.

SECTION 2. Chapter 501, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§501- Transaction fee; recordings in the office of the assistant registrar of the land court; services rendered by the bureau of conveyances. (a) The department of land and natural resources shall assess a transaction fee of $5 for each recording in the office of the assistant registrar of the land court for services rendered by the bureau of conveyances under this chapter; provided that any amendments to the transaction fee amount specified in this subsection shall be made by the board of land and natural resources pursuant to section 502-B.

(b) The transaction fees collected pursuant to this section shall be deposited to the credit of the bureau of conveyances special fund established under section 502-8 and shall be used to support purchases of hardware, software, design and implementation services, staff training, and other related support services for the improvement of daily operations and automation and the increased efficiency and productivity of the bureau of conveyances."

SECTION 3. Chapter 502, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§502-A Transaction fee; recordings in the bureau of conveyances. (a) The department of land and natural resources shall assess a transaction fee of $5 for each recording in the bureau of conveyances for services rendered under this chapter; provided that any amendments to the transaction fee amount specified in this subsection shall be made by the board of land and natural resources pursuant to section 502-B.

§502-B Administrative fees; recording, filing, and transaction fees; board of land and natural resources. (a) Notwithstanding any law to the contrary, the board of land and natural resources may adopt, amend, or repeal administrative fees under this chapter and chapter 501, exempt from chapter 91, including but not limited to:

(1) The transaction fee for each recording in the office of the assistant registrar of the land court for services rendered by the bureau of conveyances pursuant to section 501- ;

(2) The transaction fee for each recording in the bureau of conveyances for services rendered pursuant to section 502-A; and

(3) Other administrative fees and costs associated with the recordation and filing of instruments in the bureau of conveyances and office of the assistant registrar of the land court.

(b) The bureau of conveyances shall post notice on the department of land and natural resources' website for any proposed administrative fees or amendments thereto at least days before the meeting of the board of land and natural resources at which proposed administrative fees under subsection (a) are to be considered.

The notice shall include:

(1) The full text of the proposed administrative fee in Ramseyer format;

(2) The date, time, and place where the board of land and natural resources meeting is to be held; and

(3) Where interested persons may provide written testimony or may be heard regarding the adoption, amendment, or repeal of the proposed administrative fee.

(c) The board of land and natural resources shall afford all interested persons an opportunity to submit, orally or in writing, data, views, or arguments related to a proposed administrative fee under this chapter and chapter 501. The board of land and natural resources shall fully consider all written and oral submissions regarding the proposed administrative fee and shall make its decision at the meeting pursuant to section 171-5.

(d) Any administrative fee adopted, amended, or repealed pursuant to this section shall become effective days after adoption by the board of land and natural resources, unless otherwise specified by the board. If the board of land and natural resources specifies a later effective date, the later date shall be the effective date; provided that no administrative fee shall have an effective date more than days after the board's adoption of the administrative fee.

(e) Recording fees collected under this section shall be deposited to the credit of the bureau of conveyances special fund established under section 502-8; provided that all transaction fees collected shall be used to support purchases of hardware, software, design and implementation services, staff training, and other related support services for the improvement of daily operations and automation of the bureau of conveyances."

SECTION 4. Section 502-8, Hawaii Revised Statutes, is amended to read as follows:

"§502-8 Bureau of conveyances special fund. (a) There is established in the state treasury the bureau of conveyances special fund, into which shall be deposited the revenues remitted pursuant to sections 501-23.5 and 502-25[,]; transaction fees established pursuant to sections 501- and 502-A; recording fees established pursuant to section 502-B; interest earnings[,]; grants[,]; donations[,]; and appropriations from the legislature that shall be held separate and apart from all other moneys, funds, and accounts in the state treasury.

(b) Moneys in the bureau of conveyances special fund shall be used by the bureau of conveyances for the following purposes:

(1) Planning, design, construction, and acquisition of equipment, furnishings, and software necessary for the [~~development~~] enhancement and periodic replacement of the recording system described in this chapter and chapter 501;

(2) Operating, maintaining, and improving the recording system described in this chapter and chapter 501 or any other purpose deemed necessary by the bureau of conveyances for the purpose of planning, improving, developing, operating, maintaining the continuity of business operations, and maintaining of the recording [~~system~~] office operation described in this chapter and chapter 501;

(3) The secure and accessible digital preservation of all recorded documents and maps as well as the professional restoration of a select series of bound book records of historic and cultural value;

[~~(3)~~] (4) Permanent and temporary staff positions as well as the limited use of qualified contractors for the purposes of this chapter and chapter 501; and

[~~(4)~~] (5) Administrative costs for the purposes of this chapter and chapter 501[.];

provided that moneys collected from transaction fees pursuant to sections 501- and 502-A for deposit into the special fund shall be used to support purchases of hardware, software, design and implementation services, staff training, and other related support services for the improvement of daily operations and automation of the bureau of conveyances.

(c) All moneys in excess of $500,000 remaining on balance in the bureau of conveyances special fund on June 30 of each year shall lapse to the credit of the state general fund; provided that any balance of funds collected pursuant to section 16 of Act 120, Session Laws of Hawaii 2009, as amended, until that section is repealed on December 31, 2024, and pursuant to sections 501- and 502-A shall not lapse to the credit of the state general fund. On July 1 of each year, the director of finance is authorized to transfer any excess funds in the bureau of conveyances special fund to the state general fund."

SECTION 5. Section 502-25, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except when otherwise provided, including in section 502-B, fees for services rendered under this chapter shall be established by rules adopted by the department of land and natural resources, pursuant to chapter 91."

SECTION 6. Section 502-27, Hawaii Revised Statutes, is amended to read as follows:

"§502-27 Charges. [(a) Except when otherwise provided, fees for the use of microfilms of documents recorded in the bureau of conveyances for the purpose of making duplicates shall be established by rules adopted by the department of land and natural resources pursuant to chapter 91.

~~(b)~~] Frame charges for duplicating microfilm shall not be assessed against any agency of the State or counties thereof."

SECTION 7. Act 120, Session Laws of Hawaii 2009, as amended by section 11 of Act 119, Session Laws of Hawaii 2013, is amended as follows:

1. By amending section 16 to read:

"SECTION 16. [As of July 1, 2009, the department of land and natural resources shall assess a transaction fee of $5 to be charged for each recording in the bureau of conveyances and in the office of the assistant registrar of the land court for services rendered by the bureau of conveyances pursuant to part II of chapter 501 and chapter 502, Hawaii Revised Statutes. The transaction fees collected shall be deposited to the credit of the bureau of conveyances special fund established under section 502-8, Hawaii Revised Statutes, and shall be used to support purchases of hardware, system design, and staff training related to automation of the bureau of conveyances.] Repealed."

2. By amending section 21 to read:

"SECTION 21. This Act shall take effect on July 1, 2009; provided that section 2 of this Act shall take effect on July 1, 2011; provided further that section 16 of this Act shall take effect on July 1, 2009, and shall be repealed on [the effective date of administrative rules adopted by the department of land and natural resources that address the establishment of transaction fees for each recording in the bureau of conveyances and in the office of the assistant registrar of the land court;] December 31, 2024; provided further that section 17 of this Act shall take effect on January 1, 2012; and provided further that section 18 of this Act shall take effect upon its approval and shall be repealed on January 31, 2010."

SECTION 8. In codifying the new sections added by section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on January 1, 2025; provided that section 7 shall take effect on December 31, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2954
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII