STAND. COM. REP. NO. 346

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1219

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1219 entitled:

 

"A BILL FOR AN ACT RELATING TO REAL ESTATE BROKERS AND SALESPERSONS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to clarify that a licensed real estate broker or real estate salesperson acting within the scope of the broker or salesperson's license does not violate the prohibition on the unauthorized practice of law.

 

     Your Committee heard testimony in support of this measure from the Real Estate Commission and Hawaii Association of Realtors.  Your Committee heard testimony in opposition to this measure from the Department of the Attorney General and Hawaii State Bar Association.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that under current law, real estate brokers and salespersons are required to hold licenses and are regulated by the Real Estate Commission, which oversees the education, licensure, and discipline of licensees.  This measure clarifies the existing law and allows real estate licensees who act in accordance with the terms of their license to avoid inadvertent criminal violations, especially in instances where licensed professional activities overlap with activities common to the practice of law.  Your Committee believes that existing statutes and administrative rules pertaining to real estate licensees, in addition to existing criminal prohibitions against the unauthorized practice of law, are sufficient to protect consumers.

 

     Your Committee has amended this measure by deferring its effective date to provide an opportunity for further discussion. 

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1219, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1219, S.D. 1, and be referred to the Committee on Judiciary and Government Operations.

 

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

 

 

 

____________________________

ROSALYN H. BAKER, Chair