STAND. COM. REP. NO. 754

Honolulu, Hawaii

RE: S.B. No. 770

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 770 entitled:

"A BILL FOR AN ACT RELATING TO REAL ESTATE LICENSES,"

begs leave to report as follows:

The purpose and intent of this measure is to require a high school education or its equivalent as a condition for obtaining a license as a real estate broker or real estate salesperson.

Your Committee received testimony in support of this measure from the Real Estate Commission, Hawai‘i Association of REALTORS, and one individual.

Your Committee finds that one of the purposes of the Hawaii Regulatory Licensing Reform Act is to protect public welfare, rather than the regulated profession or vocation. This policy was reiterated upon establishment of the Real Estate Commission whose purpose includes the protection of the general public in its real estate transactions. According to testimony from the Real Estate Commission, requiring a high school diploma or its equivalent as a condition for obtaining a license ensures an educated licensee population in order to protect consumers in their real estate transactions, which is one of the most important financial decisions in many people's lives. This measure supports efforts to help raise the bar of professionalism in the real estate industry by establishing a minimum educational requirement.

Your Committee has amended this measure by clarifying that this measure shall apply only to new applicants who are applying for licensure as a real estate broker or salesperson for the first time on or after the July 1, 2020, effective date and for first license renewal applications commencing in 2020.

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. 770, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 770, 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