SB 1212: Real Estate Commission; Membership; Requirements; Professional Engineers; Architects

A BILL FOR AN ACT

RELATING TO THE REAL ESTATE COMMISSION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the real estate commission is responsible for, among other things, overseeing condominium projects, condominium associations, managing agents, and condominium hotel operators.  The real estate commission is also responsible for administering the condominium education trust fund for educational purposes, including education and research in the field of condominium management.  Presently, there are approximately 1,668 condominium association registrations and twenty-nine condominium hotel operator registrations in the State.  The legislature also finds that more than half of all condominium buildings in the State were built before 1980, with a significant number of them requiring replacements, upgrades, and retrofits to comply with building codes and maintain insurability.  Because these projects are costly and complicated, condominium associations have deferred necessary maintenance and structural repairs over the past several years and are becoming less insurable.

     The legislature believes that, by adding experts in high rise building design and maintenance to the real estate commission, such as licensed engineers and architects, the real estate commission may be better able to address the issues that condominiums are facing with respect to deferred maintenance, structural repairs, and insurability.

     Accordingly, the purpose of this Act is to ensure that the real estate commission is better able to address the current issues among condominium properties in the State by:

     (1)  Increasing the membership size of the real estate commission from nine members to eleven members; and

     (2)  Requiring at least two members of the real estate commission to be licensed professional engineers or architects.

     SECTION 2.  Section 467-3, Hawaii Revised Statutes, is amended to read as follows:

     "§467-3  Commission, appointments, qualifications, tenure.  There shall be appointed a commission to be known as the real estate commission, to consist of [nine] eleven members, at least four of whom shall be licensed real estate brokers who have been engaged in business as licensed real estate brokers or salespersons for three years immediately preceding their appointments[, each of whom].  At least two members shall be licensed professional engineers or architects who have been engaged in business as licensed professional engineers or architects in the State for three years immediately preceding their appointments.  All members shall be a citizen of the United States and shall have resided in the State for at least three years preceding appointment, and one of whom shall be designated by the appointing power as chairperson.  Four members shall be residents of the city and county of Honolulu, one shall be a resident of the county of Hawaii, one shall be a resident of the county of Maui, and one shall be a resident of the county of Kauai and two members shall be public members.

     Appointments shall be made for a term of four years, commencing from the date of expiration of the last preceding term and shall be made to expire on June 30.  Appointments shall be made so that at least one appointment shall be required each year.

     Any vacancy shall be filled by appointment for the unexpired term."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Real Estate Commission; Membership; Requirements; Professional Engineers; Architects

Description:

Requires at least two members of the Real Estate Commission to be licensed professional engineers or architects engaged in business in the State for three years immediately preceding the appointment.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to the real estate commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the real estate commission is responsible for, among other things, overseeing condominium projects, condominium associations, managing agents, and condominium hotel operators.  The real estate commission is also responsible for administering the condominium education trust fund for educational purposes, including education and research in the field of condominium management.  Presently, there are approximately 1,668 condominium association registrations and twenty-nine condominium hotel operator registrations in the State.  The expertise of the real estate commission is therefore critical to ensuring accountability and compliance with existing condominium law.

     Accordingly, to promote the safety of the hundreds of thousands of residents who live in the condominiums across the State, the purpose of this Act is to require that at least two members of the real estate commission be licensed professional engineers or professional architects who have been engaged in business within the State for three years preceding their appointment to the real estate commission.

     SECTION 2.  Section 467-3, Hawaii Revised Statutes, is amended to read as follows:

     "§467-3  Commission, appointments, qualifications, tenure.  There shall be appointed a commission to be known as the real estate commission, to consist of nine members, at least four of whom shall be licensed real estate brokers who have been engaged in business as licensed real estate brokers or salespersons for three years immediately preceding their appointments[, each of whom].  At least two members shall be licensed professional engineers or architects who have been engaged in business as a licensed professional engineer or architect in the State for three years immediately preceding their appointments.  All members shall be a citizen of the United States and shall have resided in the State for at least three years preceding appointment, and one of whom shall be designated by the appointing power as chairperson.  Four members shall be residents of the city and county of Honolulu, one shall be a resident of the county of Hawaii, one shall be a resident of the county of Maui, and one shall be a resident of the county of Kauai and two members shall be public members.

     Appointments shall be made for a term of four years, commencing from the date of expiration of the last preceding term and shall be made to expire on June 30.  Appointments shall be made so that at least one appointment shall be required each year.

     Any vacancy shall be filled by appointment for the unexpired term."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Real Estate Commission; Membership; Requirements; Professional Engineers; Architects

Description:

Requires at least two members of the Real Estate Commission to be licensed professional engineers or architects engaged in business in the State for three years immediately preceding the appointment.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 801

Honolulu, Hawaii

RE:    S.B. No. 1212

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1212 entitled:

"A BILL FOR AN ACT RELATING TO THE REAL ESTATE COMMISSION,"

begs leave to report as follows:

     The purpose and intent of this measure is to promote the safety of residents who live in condominiums across the State by expanding the membership of the Real Estate Commission to require at least two members to be licensed professional engineers or architects who have been engaged in business within the State for three years preceding their appointment to the Real Estate Commission.

     Your Committee received testimony in support of this measure from one individual.

     Your Committee received comments on this measure from one individual.

     Your Committee finds that the Real Estate Commission is responsible for a wide spectrum of condominium-related issues in the State, including oversight of condominium projects, condominium associations, managing agents, and condominium hotel operators.  Your Committee notes the current and pressing issues facing many residents of condominiums, including deferred maintenance projects that have led to exorbitant assessments and uninsurable buildings, resulting in financial risk and uncertainty for a considerable population of the State.  Your Committee believes that the Real Estate Commission should be more engaged and proactive in its responsibilities to address these current market issues and offer solutions to effectively navigate this crisis.  Adding to the Real Estate Commission two members with expertise in maintaining the structural integrity of high rise buildings is therefore necessary to guide more informed decision-making for the Commission as it relates to its duties in resolving the ongoing issues facing many condominium associations in the State.

     Your Committee has amended this measure by:

     (1)  Increasing the membership of the Real Estate Commission from nine members to eleven members;

     (2)  Inserting legislative findings and amending section 1 to reflect its amended purpose;

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     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. 1212, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1212, S.D. 1, and be placed on the calendar for Third Reading.

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