STAND. COM. REP. NO.1411
Honolulu, Hawaii
, 2001
RE: H.B. No. 585
H.D. 1
S.D. 1
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. 585, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO REAL ESTATE BROKERS,"
begs leave to report as follows:
The purpose of this measure is to update, streamline, and clarify the laws relating to real estate broker licensing and condominium hotel operators, and the fidelity bond requirements for condominium managing agents.
Specifically, this measure would:
(1) Ease the regulatory burden on real estate broker licensing requirements by changing the experience requirements for real estate broker applicants from two full-time years experience within the last five years to at least three years experience within the five years immediately preceding an application for a real estate broker license;
(2) Delete the requirement that a condominium hotel operator who also holds a real estate broker license maintain a separate condominium hotel operator registration and a fidelity bond for the condominium hotel operation since real estate brokers are covered by the Real Estate Recovery Fund which was established to protect consumers; and
(3) Conform the information and documentation filing requirements for fidelity bonds for condominium hotel operators and condominium managing agents to ensure consistency.
Testimony in support of the measure was received from the Lieutenant Governor, the Real Estate Commission (Commission), and the Hawaii Association of Realtors.
Your Committee finds that these amendments are intended to eliminate the unnecessary regulation of businesses as a result of the SWAT (Slice, Waste and Tape) Project which has been spearheaded by the Lieutenant Governor over the past two years.
Your Committee has amended this measure upon recommendation of the Real Estate Commission and the Hawaii Association of Realtors by substituting S.B. No. 1061, S.D. 1, a companion measure. The substantive amendments would:
(1) Retain the exemption of condominium hotel operators registering with the Commission if they are subject to exemption from licensing as real estate broker or salesperson;
(2) Retain the exemption from the real estate broker or salesperson license requirement for employees of a condominium hotel operator who only perform or facilitate the delivery of customary hotel services;
(3) Exempt from registration and fidelity bond requirements active real estate brokers who conduct condominium hotel activity; and
(4) Apply the requirement of providing a written contract to the apartment owners to real estate brokers who conduct condominium hotel activity.
Your Committee also made technical, nonsubstantive amendments for clarity.
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. 585, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 585, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
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____________________________ RON MENOR, Chair |
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