Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 238
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 238 entitled: 


begs leave to report as follows:

     The purpose of this measure is to simplify the certification
of real estate continuing education instructors, provide options
for licensure of candidates with a questionable background,
simplify prelicensing broker requirements, provide for an option
to the prelicensing examination, and make changes to the real
estate recovery fund.

     The Real Estate Commission (REC) and the Hawaii Association
of Realtors presented testimony in support of the measure. 

     Your Committee finds that this measure simplifies,
streamlines, clarifies, updates, and deregulates the real estate
licensing law by:

     (1)  Allowing a continuing education provider to certify
          that its instructors meet credentialing standards;

     (2)  Authorizing the licensure of a limited liability
          company as a real estate brokerage;

     (3)  Authorizing the REC to issue a preliminary decision on
          an individual's license application;

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     (4)  Providing alternative ways for an applicant to satisfy
          the experiential requirements for a real estate
          broker's license;

     (5)  Authorizing the REC to prescribe the passage of
          different parts of the licensing examination for
          different purposes;

     (6)  Extending the period for the restoration of a forfeited

     (7)  Eliminating the requirements to display a salesperson's
          license and to register a site office;

     (8)  Requiring the registration rather than the licensing of
          a real estate branch office;

     (9)  Requiring that a person seeking payment from the real
          estate recovery fund based upon a judgment obtained
          against a real estate broker or salesperson who is a
          debtor in a bankruptcy proceeding, obtain an order from
          the bankruptcy court declaring the judgment against the
          broker or salesperson to be nondischargeable;
    (10)  Providing that condominium hotel operators may register
          with the REC as a limited liability company; and

    (11)  Authorizing the REC to accept as proof of fidelity bond
          coverage a statement from a condominium hotel
          operator's insurer that the bond is in effect.
    Your Committee has made technical, non-substantive amendments
to this measure. 

     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. 238, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 238, S.D. 1, and be placed on the calendar for Third Reading.

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

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair

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