Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1522

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1522 entitled: 


begs leave to report as follows:

     The purpose of this bill is to exempt appraisers, employed
by any county for purposes of valuing real property for ad
valorem taxation, from the requirements of chapter 466K, Hawaii
Revised Statutes.

     This bill clarifies an ambiguity in Act 180, Session Laws of
Hawaii 1998, which amended the real estate appraiser licensing
law to require all real estate appraisals to be performed by
State licensed or certified appraisers.  Due to the broad
definition of "real estate appraisal" in the administrative rules
of the department of commerce and consumer affairs, the question
arose as to whether county property tax assessments could be
construed as real estate appraisals, which would require that
county employees be licensed or certified.  Such a requirement
would have a negative impact on the counties because the county
tax assessors may not qualify under the licensure requirements
for real estate appraisers.

     The Department of Commerce and Consumer Affairs (DCCA) and
the City and County of Honolulu (County) submitted testimony in
support of this bill.  DCCA testified that the intent of Act 180
was to ensure the competency of appraisers doing appraisals used
in connection with federally related transactions, such as

                                 STAND. COM. REP. NO. 330
                                 Page 2

residential lease to fee conversions, commercial lease
negotiations, and related arbitrations. Property tax assessments
do not fall within those categories, so DCCA stated it would be
proper to exempt county tax assessors.  Not exempting the county
employees would unnecessarily compel the creation of new
regulation and licensure for county tax assessors. The County
testified that, without this exemption, counties would have to
ask the State to provide funding to the counties for the new
program mandated by the State.  

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1522 and recommends that it pass Second
Reading and be referred to the Committee on Finance.

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

                                   RON MENOR, Chair