STAND. COM. REP. NO. 2659

Honolulu, Hawaii

RE: S.B. No. 2859

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Water and Land and Commerce and Consumer Protection, to which was referred S.B. No. 2859 entitled:

"A BILL FOR AN ACT RELATING TO LAND COURT,"

beg leave to report as follows:

The purpose and intent of this measure is to simplify and streamline the operation of the Land Court by authorizing the use of a master certificate of title for common interest communities.

Your Committees received testimony in support of this measure from the Community Associations Institute and one individual.

Your Committees received testimony in opposition to this measure from two individuals.

Your Committee received comments on this measure from the Department of Land and Natural Resources.

Your Committees find that under the current land court system, any amendment to the documents governing a condominium or planned community must be noted on the certificate title of each unit. Authorizing the use of a master certificate of title that lists encumbrances of general application will permit certificates of title for individual units to incorporate by reference the encumbrances on the master certificate of title. This measure eliminates the need to change the certificate title for each unit to reflect any changes in the encumbrances of general application to the condominium or planned community.

Your Committees heard testimony from the Department of Land and Natural Resources that implementing this measure unamended would duplicate the effort of the Bureau of Conveyance and Land Records Management System and would require extensive staff resources that are already strained as these agencies already support a process similar to the "master certificate of title" proposed by this measure.

Accordingly, your Committees have amended this measure by:

(1) Clarifying that the name of the owner on a master certificate of title shall be determined by the assistant registrar and will incorporate the name of the new common interest community;

(2) Deleting language that would have authorized the assistant registrar to establish a property identification number or other alternate means of identifying identical units;

(3) Deleting language relating to existing common interest communities, thereby limiting this measure to new common interest communities;

(4) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Water and Land and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2859, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2859, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Water and Land and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ LORRAINE R. INOUYE, Chair