STAND. COM. REP. NO.563
Honolulu, Hawaii
, 2001
RE: H.B. No. 585
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 585 entitled:
"A BILL FOR AN ACT RELATING TO REAL ESTATE BROKERS,"
begs leave to report as follows:
The purpose of this bill is to eliminate unnecessary regulation without compromising consumer protection by amending regulatory requirements applicable to real estate brokers (REBs) to:
(1) Change the experience requirement for REB license applicants from full-time during the three years preceding the application, to at least three years of the five years preceding the application;
(2) Exempt a condominium hotel operator who is an active, licensed, REB, from registration and fidelity bond requirements applicable to other condominium hotel operators; and
(3) Adjust condominium managing agent proof of fidelity bond requirements so that they are consistent with those applicable to condominium hotel operators.
Your Committee received testimony in support of this bill from the Real Estate Commission, the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs, Office of the Lieutenant Governor, and Hawaii Association of Realtors.
Your Committee finds that:
(1) The amended experience requirement in this bill is a flexible and reasonable alternative to the existing rule;
(2) Removing the fidelity bond requirement for condominium hotel operators who are active licensed REBs will reduce duplicative and unnecessary regulation. Consumers harmed by REBs may seek recovery from the Real Estate Recovery Fund; and
(3) Consistent proof of fidelity bond requirements will streamline administration of the law applicable to the management and operation of condominiums and condominium hotels.
Your Committee has amended this bill by making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.
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 H.B. No. 585, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 585, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |
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