STAND. COM. REP. NO.  1114

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 390

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Intrastate Commerce, to which was referred S.B. No. 390, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO APPRAISAL MANAGEMENT COMPANIES,"

begs leave to report as follows:

The purpose of this measure is to regulate appraisal management companies. 

     Specifically, this measure:

     (1)  Establishes an Appraisal Management Company Registration Program within the Department of Commerce and Consumer Affairs to conform to minimum standards established under federal law and regulations;

     (2)  Establishes registration requirements, standards, and penalties for violations; and

     (3)  Appropriates funds for costs associated with the Appraisal Management Company Registration Program.

The Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs, Hawaii Financial Services Association, Real Estate Valuation Advocacy Association, Hawaii Association of Realtors, Mortgage Bankers Association of Hawaii, and a concerned individual supported this measure.  The Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs, Hawaii Bankers Association, and Hawaii Credit Union League offered comments.   

     Your Committee has amended this measure by:

     (1)  Changing the appropriation amount for the Appraisal Management Company Registration Program to an unspecified amount;

     (2)  Changing the effective date to July 1, 2090, to promote further discussion; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     Should your Committee on Finance deliberate on this measure further, your Committee respectfully requests that it consider appropriating $140,000 for fiscal year 2018-2019 for the Appraisal Management Company Registration Program to carry out its functions.

     As affirmed by the record of votes of the members of your Committee on Intrastate Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 390, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 390, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Intrastate Commerce,

____________________________

TAKASHI OHNO, Chair