STAND. COM. REP. NO. 2975

Honolulu, Hawaii

RE: S.B. No. 2670

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Judiciary and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2670, 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 a vulnerable coastal property purchaser statement to be executed by the purchaser or transferee with the sale or transfer of vulnerable coastal real estate.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources; Hawaii Climate Change Mitigation and Adaptation Commission; Office of Climate Change, Sustainability and Resiliency of the City and County of Honolulu; Office of Economic Development of the County of Maui; Sierra Club Hawai‘i; Pono Hawai‘i Initiative; League of Women Voters; and six individuals. Your Committees received testimony in opposition to this measure from the Hawai‘i Association of REALTORS®.

Your Committees find that coastal property is often vulnerable to hazards, such as coastal erosion and flooding from tsunamis, storms, and high waves. These hazards can be exacerbated by sea level rise and human-caused interruptions to natural sand supply. Owners of coastal property are at risk of losing land when shorelines undergo landward retreat, which negatively impacts building setbacks, property values, and insurance availability. Furthermore, coastal property owners face stringent permit requirements imposed by the counties and State for shoreline protection. This measure enables coastal property purchasers and transferees to better understand the special hazards, permitting requirements, and limitations that may affect the coastal property by requiring a vulnerable coastal property purchaser statement with the sale or transfer of any vulnerable coastal real property.

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. 2670, S.D. 1, and recommend that it pass Third Reading.

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