STAND. COM. REP. NO. 2539

Honolulu, Hawaii

RE: S.C.R. No. 27

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.C.R. No. 27 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A SUNRISE REVIEW OF THE LICENSURE AND REGULATION OF HOME INSPECTORS,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Auditor to conduct a sunrise review of the licensure and regulation of home inspectors.

Your Committee received testimony in support of this measure from the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs, Hawai‘i Association of REALTORS, and six individuals. Your Committee received testimony in opposition to this measure from Diamond Head Home Inspections and ten individuals. Your Committee received comments on this measure from one individual.

Your Committee finds that buying a home could be the largest single investment a person or family will ever make. To minimize unexpected costs and delays in purchasing the home, it is important for the purchaser to learn as much as possible about the newly constructed or existing home before closing on the purchase. A home inspection may identify any needed repairs or builder defects prior to closing, as well as any maintenance issues that are necessary to keep the home in good condition after purchase. For existing homeowners, a home inspection can identify potential problems and suggest preventive measures that might help the homeowner avoid costly future repairs. For sellers, a home inspection can give the seller an opportunity to make repairs that will put the house in better selling condition. Thus, home inspectors play an integral role in many real estate transactions.

Your Committee further finds that unlike other professionals who are involved in real estate transactions such as real estate appraisers, real estate brokers and salespersons, mortgage loan originators, and mortgage servicers, home inspectors are not regulated by the State and do not require state licensure to perform services in Hawaii. By requesting the Auditor to conduct a sunrise review of the licensure and regulation of home inspectors, this measure complies with the Hawaii Regulatory Licensing Reform Act.

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 Housing that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 27, as amended herein, and recommends that it be referred to your Committee on Commerce, Consumer Protection, and Health, in the form attached hereto as S.C.R. No. 27, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Housing,

________________________________

WILL ESPERO, Chair