Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2417 entitled:

begs leave to report as follows:

The purpose of this bill is to allow the Real Estate Commission (Commission) to enter into a license recognition agreement with another state, or with a jurisdiction recognized by the Association of Real Estate License Law Officials, that has an equivalent real estate licensing law as determined by the Commission.

Testimony in support of this measure was received from the Commission and the Hawaii Association of Realtors.

The Commission testified that if provided the authority under this bill, the Commission intends to negotiate agreements in the best interest of Hawaii's consumers and real estate licensees upon determining:

Your Committee finds that the real estate brokerage business is increasingly conducted through the internet, across state lines and globally. Hawaii's consumers are negotiating, purchasing, selling, renting, leasing, financing, and closing real estate transactions through the internet, faxes, and telephones. The real property and real estate licensees involved may be in Hawaii or in another state or country.

This bill would benefit Hawaii's licensees, as well as protect consumers doing real estate business out-of-state or with out-of-state parties, by providing additional consumer protection by way of cooperative enforcement initiatives, mutual exchanges of information, complaint assistance, and additional insurance and recovery fund requirements.

This bill would also benefit the real estate licensee through recognition of their Hawaii license in other states.

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. 2417 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.