STAND. COM. REP. NO. 1084

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1522
                                        H.D. 1
                                        S.D. 1




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

Sir:

     Your Committees on Commerce and Consumer Protection and
Transportation and Intergovernmental Affairs, to which was
referred H.B. No. 1522, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO REAL PROPERTY APPRAISALS,"

beg leave to report as follows:

     The purpose of this measure is to clarify that county
property tax assessors are not subject to the requirements of
chapter 466K, Hawaii Revised Statutes, (HRS), relating to the
regulation of real estate appraisers. 

     The Department of Commerce and Consumer Affairs and the
Department of the Corporation Counsel of the City and County of
Honolulu presented testimony in support of the measure.  An
individual presented testimony in opposition to the measure.  The
Hawaii Chapter of the Appraisal Institute, though not present at
the hearing, submitted written testimony in opposition to the
measure.

     Your Committees find that the express exemption of county
tax assessors from chapter 466K, HRS, is consistent with the
intent and purpose of the law and with the State Constitution.

     Act 180, Session Laws of Hawaii 1998, which established the
requirements that all real estate appraisals be performed by
licensed or certified appraisers and that appraisals be performed
in compliance with current uniform standards of professional

 
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appraisal practice, was enacted in response to problems arising
in the private sector with residential lease-to-fee conversions
and commercial lease renegotiations.  As the Legislative Auditor
noted in its 1998 report entitled "Analysis of a Proposal to
Expand the Regulation of Real Estate Appraisers and Appraisals",
"while landowners are not always pleased with their tax
assessments, the impetus for expanded regulation does not appear
to have been dissatisfaction about tax assessments". 

     Further, the State Constitution grants the counties
exclusive authority over matters concerning real property
taxation, and a law requiring State licensure of county tax
assessors could be deemed unconstitutional.

     Your Committees further find that the Department of Commerce
and Consumer Affairs (DCCA) has raised concerns relating to the
regulation of county tax assessors under chapter 466K, HRS.  DCCA
notes that county tax assessors may not possess the necessary
qualifications for licensure, and if they are unable to carry out
their duties due to lack of licensure, the operations of the
counties' property tax divisions would be impeded.  The
establishment of a different regulatory scheme for government tax
assessors would be inconsistent with the Department's goals of
deregulating and streamlining government, and create a strain on
its limited resources.  
         
     For all of the above reasons, your Committees find that this
measure is necessary to clarify that county tax assessors are not
regulated under chapter 466K, HRS.

     Your Committees have amended this measure by postponing its
effective date to January 1, 2005. 

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Transportation
and Intergovernmental Affairs that are attached to this report,
your Committees are in accord with the intent and purpose of
H.B. No. 1522, H.D. 1, as amended herein, and recommend that it
pass Second Reading in the form attached hereto as H.B. No. 1522,
H.D. 1, 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
                                   Committees on Commerce and
                                   Consumer Protection and
                                   Transportation and
                                   Intergovernmental Affairs,



____________________________       ______________________________
CAL KAWAMOTO, Chair                BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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