STAND

STAND. COM. REP. NO. 1490

Honolulu, Hawaii

, 2005

RE: S.C.R. No. 103

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 S.C.R. No. 103 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING REVIEW BY THE AUDITOR CONCERNING THE LICENSING AND REGULATION OF PROFESSIONS AND VOCATIONS BY THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS,"

begs leave to report as follows:

The purpose of this measure is to request the Auditor to conduct a comparative analysis of Hawaii's and other states' professional and vocational regulatory programs.

The Department of Commerce and Consumer Affairs (DCCA) and Hawaii Association of Realtors testified in support of this measure.

The Hawaii Regulatory Licensing Reform Act, codified in chapter 26H, Hawaii Revised Statutes, establishes the State's policy with respect to the regulation of professions and vocations. Among other things, this policy provides that:

(1) The regulation and licensing of professions and vocations shall be undertaken only where reasonably necessary to protect the health, safety, or welfare of consumers;

(2) The purpose of regulation shall be the protection of the public welfare and not that of the regulated profession or vocation;

(3) Professional and vocational regulations that artificially increase the costs of goods and services to the consumer shall be avoided except in those cases where the Legislature determines that this cost is exceeded by the potential danger to the consumer;

(4) Professional and vocational regulations shall be eliminated when the Legislature determines that they have no further benefits to consumers; and

(5) Regulation shall not unreasonably restrict entry into professions and vocations by all qualified persons.

Your Committee finds that some of DCCA's professional and vocational regulatory programs have been criticized for being unwarranted, counterproductive, or protectionist in nature. This measure requests the Auditor to compare the State's professional and vocational regulatory programs to other states' programs and to recommend whether Hawaii's programs are necessary to protect the health, safety, and welfare of consumers. Your Committee further finds that the Auditor's analysis will assist DCCA and the Legislature in assessing the validity of the above criticisms and the need for regulation.

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 S.C.R. No. 103 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Housing,

		____________________________ RON MENOR, Chair