STAND. COM. REP. NO.  668-14

 

Honolulu, Hawaii

                , 2014

 

RE:   H.B. No. 2043

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2043 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to support the openness and transparency originally contemplated in Act 227, Session Laws of Hawaii 2011, by:

 

     (1)  Specifying that arbitration awards issued by a licensed or certified real estate appraiser to determine the fair market value, fair market rental, or fair and reasonable rent of real property shall be open to the public;

 

     (2)  Requiring real estate appraisers acting as arbitrators to record arbitration awards, records of the awards, and any supplementary, dissenting, or explanatory opinions with the Bureau of Conveyances; and

 

     (3)  Clarifying that failure to comply with reporting requirements shall be a violation of the license or certification requirements applicable to real estate appraisers.

 

     Citizens for Fair Valuation; Bacon Universal Company, Inc.; and an individual testified in support of this measure.  

 

     Your Committee has amended this measure by:

 

     (1)  Inserting substantive content into the relevant existing statutory section, rather than creating a new section, and:

 

          (A)  Specifying that all information required to be recorded in the Bureau of Conveyances shall be public records;

 

          (B)  Specifying that recording requirements apply to real estate appraisers named or appointed as arbitrators in a submission agreement to appraise or arbitrate entered after July 1, 2014;

 

          (C)  Prohibiting agreements between parties or appraisers that attempt to circumvent recording requirements; and

 

          (D)  Deleting references to deeming a violation of recording requirements to be a violation of license or certification requirements;  

 

     (2)  Changing its effective date to July 1, 2112, to encourage further discussion; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2043, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2043, H.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

ANGUS L.K. McKELVEY, Chair