STAND. COM. REP. NO. 1467

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 353
                                        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 Commerce and Consumer Protection, to which
was referred H.B. No. 353, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to simplify, clarify, update,
and deregulate the real estate licensing law and provide
additional options to license applicants without compromising
consumer protection.

     The Real Estate Commission (REC) and the Hawaii Association
of Realtors presented testimony in support of the measure. 

     Your Committee finds that this measure simplifies,
streamlines, clarifies, updates, and deregulates the real estate
licensing law by:

     (1)  Allowing a continuing education provider to certify
          that its instructors meet credentialing standards;

     (2)  Authorizing the licensure of a limited liability
          company as a real estate brokerage;

     (3)  Authorizing the REC to issue a preliminary decision on
          an individual's license application;


 
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     (4)  Providing alternative ways for an applicant to satisfy
          the experiential requirements for a real estate
          broker's license;

     (5)  Authorizing the REC to prescribe the passage of
          different parts of the licensing examination for
          different purposes;

     (6)  Extending the period for the restoration of a forfeited
          license;

     (7)  Eliminating the requirements to display a salesperson's
          license and to register a site office;

     (8)  Requiring the registration rather than the licensing of
          a real estate branch office;

     (9)  Requiring that a person seeking payment from the real
          estate recovery fund based upon a judgment obtained
          against a real estate broker or salesperson who is a
          debtor in a bankruptcy proceeding, obtain an order from
          the bankruptcy court declaring the judgment against the
          broker or salesperson to be nondischargeable;
    
    (10)  Providing that condominium hotel operators may register
          with the REC as a limited liability company; and

    (11)  Authorizing the REC to accept as proof of fidelity bond
          coverage a statement from a condominium hotel
          operator's insurer that the bond is in effect.

     Your Committee has amended this measure:

     (1)  To conform the measure to H.B. No. 791, H.D. 2, by:

          (A)  Adding a new section to chapter 467, Hawaii
               Revised Statutes, that consolidates the laws
               relating to real estate licensing continuing
               education requirements; and

          (B)  Removing section 2 of the measure as received that
               amended the definition of "continuing education",
               and instead repealing the definition of
               "continuing education";

     (2)  By amending the purpose section of this measure to
          reflect the above revision; and

     (3)  By making technical, nonsubstantive changes.

 
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     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 353, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 353, H.D. 2, S.D. 1, and be placed on the
calendar for Third Reading.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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