Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 22, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to eliminate the licensing requirement for employees or contractors of licensed real estate brokers and registered acquisition agents who engage in the activities of an acquisition agent.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs (DCCA), Hilton Grand Vacations Company-Hawaii, American Resort Development Association, and Pahio Resorts, Inc.

Current law defines persons, other than developers or sales agents who solicit others to attend a time share presentation or to contact a time share sales agent or developer, as "acquisition agents", and requires these individuals to be licensed with DCCA.

Your Committee finds that the licensing requirement is unnecessary because the employees or contractors of licensed real estate brokers and registered acquisition agents who engage in the activities of an acquisition agent, are subject to discipline through the acquisition agent or sales agent who are required to be licensed. Further, the State does not impose the same type of regulatory requirement upon the employees of other regulated entities and the small number of time share complaints does not support continued licensing of these persons. This measure also requires the adoption of administrative rules to make the real estate broker or acquisition agent responsible for the acts of the employee or contractor.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 22, H.D. 2, and recommends that it pass Third Reading.