STAND. COM. REP. NO.  809-14


Honolulu, Hawaii

                , 2014


RE:   H.B. No. 1830

      H.D. 2





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii




     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1830, H.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to make real estate arbitration awards that determine fair market value, fair market rent, and fair and reasonable rent, a matter of public record regardless of any agreement among the parties or the arbitrator.


     Citizens for Fair Valuation; Pacific Jobbers Warehouse, Inc.; JN Group, Inc.; Kapolei Medical Park; Paradise Park, Inc.; Waiakamilo Shopping Center; Waialae Plaza; and three individuals testified in support of this measure.  The Land Use Research Foundation of Hawaii testified in opposition to the measure.


Your Committee notes that the current confidentiality process in real estate arbitration awards allows appraisers, attorneys, and lessors to retain important data while shielding the information from lessees.  Accordingly, the process places lessees at a disadvantage by preventing them from researching and determining whether a lessor is truly offering "fair market rent."  Your Committee finds that requiring various fair market arbitration awards to be publicly recorded with the Bureau of Conveyances will promote openness and transparency in real estate contracts by allowing all parties to negotiate with the same information.


     Your Committee has amended this measure by changing the effective date to July 1, 2112, to encourage further discussion on the measure.


     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. 1830, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1830, H.D. 2.


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