STAND. COM. REP. NO. 1011

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1340

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committees on Judiciary and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 1340, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO REAL PROPERTY TRANSACTIONS,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to require that mandatory seller disclosures in real estate transactions include identification of residential real properties lying within a two-foot sea level rise exposure area, subject to the availability of county maps designating the areas by tax map key.

 

     Your Committees received testimony in support of this measure from the Office of Planning, Environmental Caucus of the Democratic Party of Hawaii, Hawaii Reef and Ocean Coalition, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, Sierra Club of Hawaii, and three individuals.  Your Committees received testimony in opposition to this measure from the Hawaii Association of REALTORS.  Your Committees received comments on this measure from the Department of Land and Natural Resources and Building Industry Association of Hawaii.

 

     Your Committees find that Act 32, Session Laws of Hawaii 2017, established the Hawaii Climate Change Mitigation and Adaptation Commission and directed the Commission to, as a first step, focus on and develop sea level rise vulnerability and adaptation reports.  Your Committees further find that the Commission's report has identified areas that are susceptible to sea level rise impacts based on a 3.2-foot increase in sea level projected to occur by mid-century or earlier.  Your Committees additionally find that chapter 508D, Hawaii Revised Statutes, requires a written disclosure statement prepared by the seller, or at the seller's discretion, that purports to fully and accurately disclose all material facts relating to residential real property being offered for sale.  Your Committees also find that the value of property lying within the boundaries of a sea level rise exposure area is likely to be affected over time, which is a material fact that should be included in mandatory seller disclosure statements in real property transactions.

 

     Your Committees have amended this measure by requiring disclosure when property lies within the sea level rise exposure area as officially designated by the Hawaii Climate Change Mitigation and Adaptation Commission even if the property is outside of the two-foot sea level rise exposure area.

 

     As affirmed by the records of votes of the members of your Committees on Judiciary and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1340, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1340, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committees on Judiciary and Commerce, Consumer Protection, and Health,

 

________________________________

ROSALYN H. BAKER, Chair

 

________________________________

KARL RHOADS, Chair