HI Senate Bill 2910 | NNA
Law

HI Senate Bill 2910

Notary Law Update: HI Senate Bill 2910

State: Hawaii

Summary:

Senate Bill 2910 modifies the laws concerning the commissioning and duties of commissioners of deeds in the state of Hawaii.

Signed:  June 21, 2016

Effective:  July 01, 2016

Chapter: 78

Affects:

Adds Sections 503B-A, 503B-B and 503B-C to and amends Sections 503B-1, 503B-3 and 503B-8 of the Hawaii Revised Statutes.

Changes:
  1. Tasks the Lieutenant Governor with appointing commissioners of deeds. Previously, the Governor made such appointments.
  2. Clarifies that a commissioner of deeds may act if the document in connection with a time share interest, any property subject to a time share plan or the operation of a time share plan that includes property located in Hawaii provided the document is executed in international waters or in U.S. territorial seas, and not just outside the 50 states and the District of Columbia.
  3. Clarifies that a commissioner of deeds may charge a fee that is not higher than the rates authorized to be charged by Hawaii Notaries if the transaction is taking place in international waters or U.S. territorial seas.
  4. Raises the penal sum of the commissioner of deeds surety bond from $1,000 to $10,000.
  5. Authorizes the Lieutenant Governor to adopt rules as the lieutenant governor deems necessary to implement Chapter 503B, HRS (commissioners of deeds provisions), including but not limited to the appointment and duties of commissioners of deeds and other measures necessary to prevent the fraudulent use of a document affixed with the commissioner of deeds' seal.
  6. Sets the following fees the Lieutenant Governor must charge for the following services, which the Lieutenant Governor may later adjust by adopting rules: (a) Application for commissioner of deeds commission, $10; (b) Application for renewal of commissioner of deeds commission, $10; (c) Application for restoration of forfeited commission, $10; (d) Application for reinstatement of suspended commission, $10; (e) Issuance of the original commission, $40; (f) Renewal of the commission, $40; (g) Restoration of forfeited commission, $60; (h) Reinstatement of suspended commission, $40; and (i) Commission name change, $10.
  7. Authorizes the Lieutenant Governor to assess and collect the following administrative fines, which the Lieutenant Governor may later adjust by adopting rules, if a commissioner of deeds fails to: (a) Maintain an official seal in accordance with section 503B-2(a)(1) and any rule adopted pursuant to Chapter 91, $20; (b) Surrender the seal and certificate of the commissioner of deeds to the lieutenant governor within ninety days of resignation, removal from office, or the expiration of a term without renewal, $200; (c) Authenticate every acknowledgment or jurat with a certificate that is signed and dated by a commissioner and in a form prescribed by the lieutenant governor, $500; (d) Record all of the transactions of the commissioner of deeds as prescribed by section 503B-4 and any rules adopted pursuant to Chapter 91, $200; (e) Surrender the record books of the commissioner of deeds to the lieutenant governor within ninety days of the expiration or termination of the commission, resignation, or removal from office, $500; (6) Notify the lieutenant governor within ten days after loss, misplacement, or theft of the commissioner's seal or record book, or both, $20; provided that, in the case of theft, the commissioner shall also: (i) Inform the appropriate local law enforcement agency of the theft within ten days of discovery of the theft or, if the theft occurs on a vessel, inform the vessel's captain of the theft within ten days of discovery of the theft; (ii) Use reasonable efforts to obtain a copy of a report of the theft from the appropriate local law enforcement agency or, if the theft occurs on a vessel, from the vessel's captain or other officer; and (iii) Deliver a copy of any report of the theft to the lieutenant governor within ten days after obtaining a receipt.
Analysis:

Section 1 of Senate Bill 2910 presents the Hawaii Legislature’s finding for the bill: “The legislature finds the existing process for authentication and recordation of time share real estate documents signed outside of the United States can be cumbersome and expensive. Act 277, Session Laws of Hawaii 2013 (Act 277), established the commissioners of deeds program within the office of the lieutenant governor to streamline this process…. The legislature further finds that after the enactment of Act 277, a working group was established to assist in implementing the commissioners of deeds program. Representatives from the office of the lieutenant governor, department of the attorney general, department of commerce and consumer affairs, and bureau of conveyances, and members of the time share industry met on multiple occasions to discuss and analyze the implementation of Act 277. The working group determined that additional legislation and authorization would assist with the effective implementation of the commissioners of deeds program and ensure the protection of consumers who wish to purchase a time share property located in the State. However, due to a lack of funding and the absence of necessary clarification, the program has not yet been implemented.” As a result, Senate Bill 2910 was enacted into law.

Read the bill text.

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