STAND. COM. REP. NO.  1145

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 975

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred S.B. No. 975, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPRAISALS,"

begs leave to report as follows:

     The purpose of this bill is to require a real estate appraiser to comply with the Uniform Standards of Professional Appraisal Practice when acting as an arbitrator in an arbitration proceeding to determine the fair market value, fair market rental value, or fair and reasonable rent of real estate. 

     Citizens for Fair Valuation, Central Park Community Association, Sony Electronics, and several concerned individuals supported this bill.  The Department of Land and Natural Resources, Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs, and Land Use Research Foundation of Hawaii opposed this bill. 

     As this bill moves forward in the legislative process, your Committee respectfully requests your Committees on Consumer Protection and Commerce and Judiciary to review the arbitration process, noting in particular its final and binding nature and the lack of an appeals process.

     Your Committee has amended this measure by changing its effective date to July 1, 2112, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 975, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 975, S.D. 1, H.D. 1, and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. McKELVEY, Chair