STAND. COM. REP. NO. 940

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1172
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred H.B. No. 1172, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE BUREAU OF CONVEYANCES,"

begs leave to report as follows:

     The purpose of this measure is to provide a permanent source
of funding for the Bureau of Conveyances (Bureau).

     The measure accomplishes this by:

     (1)  Replacing the Bureau of Conveyances Equipment
          Modernization Special Fund with the Bureau of
          Conveyances Special Fund (Bureau Special Fund);

     (2)  Authorizing the Bureau to change the fees charged for
          microfilm duplication;

     (3)  Providing for the deposit of a portion of recordation
          fees received at the Bureau into the general fund;

     (4)  Changing the required deposit to the credit of the
          State general fund from $15 to $23 for each document
          recorded at the Bureau;

     (5)  Providing for the deposit of the remainder of
          recordation fees and other fees into the Bureau Special
          Fund; and

 
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     (6)  Authorizing the Bureau to pay for equipment, software,
          administrative costs, personnel, and improvements
          necessary for modernization of the recording system out
          of the Bureau Special Fund;

     The Department of Land and Natural Resources (DLNR)
testified in support of the measure.  The Nature Conservancy of
Hawaii had no objections to the measure.  The Tax Foundation of
Hawaii commented on the bill.

     Your Committee has amended the measure by:

     (1)  Mandating, rather than permitting, the Bureau to
          utilize the moneys in the Bureau Special Fund for the
          modernization of the recording system;

     (2)  Adding a section to the measure that amends section
          247-7, Hawaii Revised Statutes, to divert the deposit
          of conveyance taxes into the general fund to the Bureau
          Special Fund;

     (3)  Deleting Section 4 of the measure which would have
          amended section 502-27, Hawaii Revised Statutes;

     (4)  Changing the required deposit to the credit of the
          State general fund from $23 to $15 for each document
          recorded at the Bureau;

     (5)  Adding a $3,000,000 appropriation from the Bureau
          Special Fund to DLNR;

     (6)  Changing the effective date of the measure to July 1,
          1999; and

     (7)  Making technical, nonsubstantive amendments for the
          purposes of style and clarity.

     Your Committee finds that returning the conveyance tax
revenues to the Bureau Special Fund to plan, implement, and
operate a recording system is an effective and efficient way to
finance the needs of the Bureau.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 1172, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1172, H.D. 2, S.D. 1, and be referred to the
Committee on Ways and Means.

 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water, Land, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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