Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.C.R. No. 204 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Auditor to conduct a "sunrise" analysis of the regulation of condominium association managers.

The Real Estate Commission (REC) and Hawaii Independent Condominium and Cooperative Owners testified in support of this measure.

Senate Bill No. 1454, Regular Session of 2003, proposes to require the certification of condominium association managers by the REC. Your Committee finds that the Hawaii Regulatory Licensing Reform Act (Act), codified in chapter 26H, Hawaii Revised Statutes, requires that, before a bill is enacted that subjects a previously unregulated profession or vocation to regulatory control, the bill must first be referred by concurrent resolution to the Auditor for a "sunrise" analysis.

The Auditor is required to determine the probable effects of the proposed regulation, assess whether the bill's enactment is consistent with the Act's policies, and consider alternative forms of regulation. This measure effects the request to the Auditor for such an analysis.

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 concurs with the intent and purpose of H.C.R. No. 204, and recommends its adoption.