RESOLUTION

WHEREAS, S.B. No. 1454, Regular Session of 2003, proposes the establishment of a regulatory scheme requiring the certification of condominium association managers by the Real Estate Commission (REC); and

WHEREAS, proponents of the measure argue that condominium association managers are responsible for managing much of the housing in the State, yet are not subject to any mandatory educational requirements and seldom know the rules and laws under which condominium associations are governed, and further, that a lack of consumer complaints in this area may not be a true indicator of the lack of a problem; and

WHEREAS, opponents of regulation raise, among other arguments, that the measure creates undue licensing requirements for a small group of persons, will impose an unnecessary financial burden on the State in tough economic times that will adversely impact the REC's program of work, runs counter to the REC's efforts to deregulate the industry, and is not justified by consumer complaints; and

WHEREAS, the Hawaii Regulatory Licensing Reform Act requires that the Auditor conduct an analysis of the proposed regulation of unregulated professions and vocations that assesses the probable effects of regulation, considers alternative forms of regulation, and examines whether regulation is warranted for consumer protection purposes; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Third Legislature of the State of Hawaii, Regular Session of 2005, the House of Representatives concurring, that the Auditor is requested to conduct an analysis of S.B. No. 1454, Regular Session of 2003, pursuant to and in accordance with section 26H-6, Hawaii Revised Statutes; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the Auditor's findings and recommendations to the Legislature no later than twenty days before the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and the Real Estate Commission.

Report Title:

Condominium Association Managers Regulation; Sunrise Review