SCR53 SD1.DOC

THE SENATE	S.C.R. NO.	53
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

REQUESTING THE AUDITOR TO CONDUCT A SUNRISE REVIEW OF THE REGULATION OF REAL ESTATE APPRAISAL MANAGEMENT COMPANIES.

WHEREAS, real estate appraisal management companies are business entities administering a network of independent real estate appraisers to fulfill real estate appraiser assignments on behalf of mortgage lending clients; and

WHEREAS, real estate appraisers are regulated by the Professional and Vocational Licensing Division's Real Estate Appraisers Program of the Department of Commerce and Consumer Affairs, pursuant to chapter 466K, Hawaii Revised Statutes; and

WHEREAS, real estate appraisers are further regulated by the federal Financial Institutions, Reform, Recovery, and Enforcement Act of 1989; and

WHEREAS, unlike real estate appraisers, real estate appraisal management companies are not currently required to register with any state or federal agency and are not subject to any state or federal regulation; and

WHEREAS, section 26H-6, Hawaii Revised Statutes, requires that "[n]ew regulatory measures being considered for enactment that, if enacted, would subject unregulated professions and vocations to licensing or other regulatory controls shall be referred to the auditor for analysis"; and

WHEREAS, S.B. No. 1606, introduced during the 2009 Regular Session, proposes the registration and regulation of Hawaii real estate appraisal management companies; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2009, the House of Representatives concurring, that the Auditor is requested to perform a sunrise review of real estate appraisal management companies and assess whether the enactment of the regulatory measure contained in S.B. No. 1606 is consistent with the policies set forth in section 26H-2, Hawaii Revised Statutes; and

BE IT FURTHER RESOLVED that the Auditor is requested to report any findings and recommendations, including an assessment of alternate regulatory enforcement frameworks other than the one contained in S.B. No. 1606, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2010; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and the Director of Commerce and Consumer Affairs.