HOUSE OF REPRESENTATIVES
H.B. NO.
2544
THIRTY-THIRD LEGISLATURE, 2026
H.D. 1
STATE OF HAWAII
S.D. 1
A BILL FOR AN ACT
RELATING TO ADMINISTRATIVE FEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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, 2027:
(1) Making permanent, rather than repealing upon the adoption of relevant administrative rules, the department of land and natural resources' authority to establish a transaction fee for certain services rendered by the bureau of conveyances for each recording in the bureau of conveyances and land court;
(2) Amending the authorized uses of moneys in the bureau of conveyances special fund; and
(3) Repealing provisions 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:
"[Underlined: §501- ] [Underlined: Transaction fee; recordings in the office of the assistant registrar of the land court; services rendered by the bureau of conveyances.] [Underlined: (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.]
[Underlined: (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 for the increased efficiency and productivity of the bureau of conveyances.]"
SECTION 3. Chapter 502, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"[Underlined: §502- ] [Underlined: Transaction fee; recordings in the bureau of conveyances.] [Underlined: (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.]
[Underlined: (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 for the increased efficiency and productivity of the bureau of conveyances.]"[Underlined: ]
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[[Struck through: ,]][Underlined: ; transaction fees established pursuant to sections 501- and 502- ;] interest earnings[[Struck through: ,]][Underlined: ;] grants[[Struck through: ,]][Underlined: ;] donations[[Struck through: ,]][Underlined: ;] 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 [[Struck through: development]] [Underlined: 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, [Underlined: maintaining the continuity of business operations,] and maintaining [Underlined: of] the recording [[Struck through: system]] [Underlined: office operations] described in this chapter and chapter 501;
[Underlined: (3)] [Underlined: 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;]
[[Struck through: (3)]] [Underlined: (4)] Permanent and temporary staff positions [Underlined: as well as the limited use of qualified contractors] for the purposes of this chapter and chapter 501; [Underlined: provided that the use of moneys for the limited use of qualified contractors shall be for services provided under a contract entered into no later than December 31, 2028;] and
[[Struck through: (4)]] [Underlined: (5)] Administrative costs for the purposes of this chapter and chapter 501[[Struck through: .]][Underlined: ;]
[Underlined: provided that moneys collected from transaction fees pursuant to sections 501- and 502- 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, [Underlined: as amended, until that section is repealed on December 31, 2026, and pursuant to sections 501- and 502- ] 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 502-27, Hawaii Revised Statutes, is amended to read as follows:
"§502-27 Charges. [[Struck through: (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.]
[Struck through: (b)]] Frame charges for duplicating microfilm shall not be assessed against any agency of the State or counties [[Struck through: thereof]]."
SECTION 6. 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. [[Struck through: 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.]] [Underlined: 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 [[Struck through: 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;]] [Underlined: December 31, 2026;] 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 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 3026, except that section 6 shall take effect on December 31, 2026.
Report Title:
DLNR; Bureau of Conveyances; Land Court; Transaction Fees
Description:
Makes permanent, rather than repealing upon the adoption of relevant administrative rules, the Department of Land and Natural Resources' authority to establish a transaction fee for certain services rendered by the Bureau of Conveyances for each recording in the Bureau of Conveyances and Land Court. Amends the authorized uses of moneys in the Bureau of Conveyances Special Fund. Repeals language that required the Bureau of Conveyances' microfilm fees to be established by rules. Effective 7/1/3026. (SD1)
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