STAND. COM. REP. NO. 2497

Honolulu, Hawaii

RE:    S.B. No. 2328

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2328 entitled:

"A BILL FOR AN ACT RELATING TO REAL ESTATE LICENSEE ADVERTISING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Provide definitions of "advertising" and "solicitation materials" as they apply to the regulation of real estate brokers and salespersons; and

     (2)  Specify information that must be included on advertising and solicitation materials.

     Your Committee received testimony in support of this measure from the Hawai‘i Association of REALTORS.  Your Committee received testimony in opposition to this measure from the Real Estate Commission.

     Your Committee finds that traditional advertising and marketing materials include physical media, such as business cards, brochures, and flyers, and electronic media, such as electronic mail messages and websites.  However, there is a difference between marketing materials that are intended to solicit business and other branded items that are not intended to do so.

     Your Committee further finds that a clear definition regarding advertising materials and how these materials may be used do not currently exist in statute or in proposed Hawaii Administrative Rules.  This measure defines "advertising" and "solicitation materials" and clarifies what information must be included on advertising and solicitation materials, including the legal or trade name of a brokerage firm and the license number of the brokerage.  These requirements benefit consumers, who will have access to important identifying information for brokerage firms, and licensees, who may otherwise be at risk for citation of licensing violations despite best efforts to comply with the law.

     Finally, your Committee appreciates the concerns raised in testimony by the Real Estate Commission.  However, your Committee believes this measure represents an immediate, practical approach to real estate advertising and solicitation requirements.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2328, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2328, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

ROSALYN H. BAKER, Chair