STAND. COM. REP. NO. 1346_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 238
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 238, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO REAL ESTATE BROKERS AND
     SALESPERSONS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Simplify, streamline, clarify, update, and deregulate
          the real estate licensing law set forth in Chapter 467,
          Hawaii Revised Statutes; and

     (2)  Provide additional options to license applicants,
          without compromising consumer protection.

     Among other things, this bill:

     (1)  Streamlines and builds flexibility into the real estate
          licensing process by:

          (A)  Allowing real estate license candidates to avoid
               unnecessary expenditures on prelicensing education
               or examination requirements by requesting a
               preliminary decision from the Real Estate
               Commission (Commission), regarding disposition of
               their license application;


 
 
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          (B)  Authorizing the Commission to recognize the growth
               of real estate specialty areas by requiring
               passage of only specific portions of examinations
               where appropriate;

          (C)  Allowing recognition of license candidates' out-
               of-state licensing examinations and other
               equivalencies; and

          (D)  Providing that where there is timely application
               for renewal of licenses, applicants shall receive
               new license certificates before the start of the
               new licensing biennium, expanding license
               restoration periods, and giving more renewal
               options to those with forfeited real estate
               licenses;

     (2)  Simplifies and deregulates certification of real estate
          continuing education instructors, by transferring
          responsibility for approval of these instructors from
          the Commission to continuing education providers;

     (3)  Deregulates the real estate broker business by
          repealing the requirements that real estate brokers
          display a broker's license, license their branch
          offices, and register their site offices;

     (4)  Ensures that conflicts between real estate recovery
          fund requirements and bankruptcy laws are avoided; and

     (5)  Simplifies condominium hotel registration requirements
          and allows condominium hotel operators to be limited
          liability companies.

     The Real Estate Commission of the Department of Commerce and
Consumer Affairs strongly supported and urged passage of this
bill.  The Hawaii Association of Realtors submitted testimony
supporting the bill stating that the amendments were much needed.

     Your Committee notes that there are numerous technical,
nonsubstantive differences between this bill and its companion,
H.B. No. 353, H.D. 1, and has replaced the text of this bill with
that of the House companion to facilitate further examination and
discussion of the two measures.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 238, S.D. 1, as amended herein, and

 
                                 STAND. COM. REP. NO. 1346_______
                                 Page 3

 
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 238, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair