STAND. COM. REP. NO. 3048

Honolulu, Hawaii

RE: S.B. No. 2728

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2728, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPRAISAL MANAGEMENT COMPANIES,"

begs leave to report as follows:

The purpose and intent of this measure is to reestablish the regulation of appraisal management companies.

More specifically, this measure:

(1) Reestablishes the appraisal management company registration program; and

(2) Appropriates moneys to the Department of Commerce and Consumer Affairs for the implementation of the appraisal management company registration program.

Your Committee received written comments in support of this measure from Hawaii Bankers Association, Hawaii Financial Services Association, Hawaii REALTORS, Mortgage Bankers Association of Hawaii, and Real Estate Valuation Advocacy Association.

Your Committee received written comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that Chapter 466L, Hawaii Revised Statutes, establishing the appraisal management company registration program, was effectively repealed on June 30, 2023, pursuant to section 26H-4, Hawaii Revised Statutes. However, your Committee believes that the reestablishment of the registration program will help the State to avoid a mortgage availability shortage.

Your Committee has amended this measure by:

(1) Specifically repealing chapter 466L, Hawaii Revised Statutes;

(2) Changing the effective date for:

(A) Section 6 of this measure to an unspecified date in 2050;

(B) Section 7 of this measure to July 1, 2050; and

(C) The remaining provisions of this measure to September 30, 2050,

to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2728, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2728, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair