No portion of this Legislative Update may be reproduced without the expressed consent of the Hawaii Association of REALTORS®.

Please email govtaffairs@hawaiirealtors.com for consent consideration.

The complete 2005 Legislative Update will be presented this summer during our Outreach Program. The following Outreach Program events have been scheduled with detailed examples on how the bills affect the way you do business. Register today.

Wednesday, May 25th, 2005 - Kauai Marriott (Kauai)

Friday, May 27th, 2005 - Hapuna Beach (Big Island)

Tuesday, May 31st, 2005 - Wailea Marriott (Maui)

Wednesday, June 1st, 2005 - Sheraton Waikiki (Oahu)

The 2005 Legislature adjourned on time yesterday. This is the last issue of the Government Affairs Weekly Updates on the HAR website provided as a member service throughout session. Our heartfelt thanks go to the members of the Legislative Committee for their commitment in time and efforts this session! Please thank them for their hard work and diligence during this legislative session.

The following is a summary of real estate-related bills tracked by the Legislative Committee this year. Governor Lingle has until June 27th to veto bills and until July 12th to sign bills into law.

TAXATION & FINANCE

County General Excise Tax Surcharge (HB 1309, HD2, SD2, CD1)

Authorizes counties to levy a one-half percent county surcharge on State tax to fund public transportation systems in their respective counties.

Conveyance Tax Increase (HB 1308, HD1, SD2, CD1)

Adjusts conveyance tax. Requires 10 percent of real estate conveyance tax collected be deposited into the land conservation fund. Increases to 30% the amount of the conveyance tax paid into the rental housing trust fund. Allows grants to state agencies, counties, and nonprofit land conservation organizations to acquire interest in lands having a value as a resource to the State. Provides stable funding mechanism for the natural area reserves system. Appropriates funds for the purchase of agriculture easements. Increases conveyance tax rates for non-occupant homeowners.

BUSINESS & TRANSACTIONAL ISSUES

Leasehold Conversion (HB 1554, HD2, SD2 ,CD1)

Excludes from taxable income 50% capital gains realized, not to exceed $75,000 in the aggregate for all taxpayers, during taxable year 2006 from sale of leased fee interest in residential house lot or multi-family residential leasehold property to the lessee.

Business Action Center (HB 99, HD1, SD2)
Transfers the Business Action Center from the Department of Business, Economic Development and Tourism to the Department of Commerce and Consumer Affairs. Grants civil service status to its employees, except the supervisor.

Hawaii Hurricane Relief Fund (SB 806, HD1, SD1)

Appropriate $2,000,000 from the Hurricane Reserve Trust Fund for the 2005-2007 biennium to finance tsunami preparedness efforts and allowing the use of the funds to acquire federal matching funds. Decrease the reimbursement rate for the installation of wind resistive devices from fifty to thirty-five per cent under the Loss Mitigation Grant Program and delete the reference to "inspection".

Sex Offender Registry (SB 708, SD2, HD2, CD1)

Clarifies the state's sex offender registry law. It will require lifetime registration for the worst sex offenders and automatic online public access to their personal information. Less serious offenders would have the chance to end their registration and public access to their informatin on the internet after a certain period of time.

Office of Planning (SB 1877, HD1, CD1)

Clarifies that the Department of Business, Economic Development, and Tourism has sole jurisdiction over land use and state planning functions and that the Office of Planning shall report to DBEDT and no other executive department. Requires that the Director of the Office of Planning be appointed with the advice and consent of the Senate.

Minimum Wage (SB 294, SD3, HD1, CD1)
Raises the minimum wage to $6.75 effective January 1, 2006, and to $7.25 effective January 1, 2007.

RESIDENTIAL & MULTIFAMILY HOUSING

Affordable Housing (SB 179, SD3, HD2, CD1)
Creates more affordable rental housing. Establishes homeless programs. Provides incentives for private developers to build affordable housing projects. Makes administrative changes to various state housing programs.

Condominium Recodification (SB 1132, SD2, HD1, CD1)
Recodifies condominium laws relating to creation, alteration, and termination; registration and administration; and protection of purchasers. Delays effective date of new condominium law and repeal of chapter 514A, HRS, until 7/1/06. Allows AOAOs to invest funds out of state.

Condominium AOAO Funds (SB 1137, SD1, HD1, CD1)
Allows condominium associations to purchase certificates of deposit through a Hawaii based securities broker.

Small Claims Court (SB 615, CD1)

Clarifies that the district court having jurisdiction over a civil action involving summary possession has concurrent jurisdiction with the small claims court over security deposit disputes between a landlord and tenant.

LAND USE & ENVIRONMENT

Land Use Commission - Golf Courses in Agricultural Districts (HB 109, HD1, SD2, CD1)
Allows golf courses, golf driving ranges, and golf-related facilities within the rural district. Prohibits golf courses and golf driving ranges in the agricultural district; except those approved by the county before July 1, 2005, for development. Allows counties to recommend rural district amendments and form an advisory group to redefine districts; and to conduct a study to develop policy recommendations to expand and enhance rural districts.

Important Agricultural Lands (HB 1640, HD3, SD2, CD1)

Establishes important agricultural lands (IALs) identification and designation process; requires an incentives study; makes identification of IALs contingent on enactment of legislative incentives; appropriates funds.

Coqui Frog Eradication (HB 1301, HD1, SD2, CD1)
Appropriates $300,000 to the counties for eradication of the invasive coqui frog.

Environmental Workforce Program – Invasive Species (SB 1554, SD1, HD2, CD1)
Establishes the environmental workforce program to assist the counties in dealing with invasive species and allows the Research Corporation of the University of Hawaii to provide the environmental workforce with training and research opportunities in the biological and social sciences regarding invasive species.

Indemnification to Protect Landowners for Public Access (HB 1276, HD3, SD1, CD1)
Allows the Department of Land and Natural Resources to enter into indemnity and defense agreements to protect landowners and persons associated with landowners.

Criminal Tresspass in Public Parks and Campgrounds (HB 806, HD1, SD1, CD1)

Repeal the amendments made to the offense of criminal trespass in the second degree by Act 50, Session Laws of Hawaii 2004. Although Act 50 was intended to address the problem of squatters in public parks or campgrounds, this law was being broadly used in circumstances not related to squatting. Establishing a new petty misdemeanor offense of criminal trespass onto public parks and recreational grounds.

For the most current and detailed information on bills, go to http://www.capitol.hawaii.gov for bill status and descriptions.

If you have any questions or comments you would like to forward to the Legislative Committee, please call the Government Affairs Division at 733-7060 or 1-888-737-9070, or by e-mail at govtaffairs@hawaiirealtors.com.