Government Affairs Update
March 28, 2008
With the deadline fast approaching, the Legislature hosted a large number of hearings this week. We will do our best to report on some issues that HAR weighed in on this week as well as those you might find interesting. Please see below for more information.
HIGHLIGHT THESE BILLS
SB546, SD2 (Restrictions and Conditions on Ag and Rural Lands) was revived from the 2007 Session and scheduled for a hearing. HAR immediately drafted testimony in opposition to the bill that establishes a minimum lot size of five acres in an agricultural district, amends minimum lot size in a rural district from one-half acre to one acre, adds criterias for the determination of rural district, and adds definitions to agricultural activities, agribusiness, and subsistence farming. The biggest concern is that communities, now existing on agricultural and rural lands, would be made "non-conforming" by this bill. The committee deferred decision making until Monday morning.
SCR231 (Bureau of Conveyance Advisory Committee) creates an advisory committee, to include a representative from the Hawai‘i Association of REALTORS, in developing a comprehensive plan for the Bureau of Conveyances. HAR testified in support of the resolution and looks foward to working with other interested parties.
HB2040 SD1 (Amends Long-Term Lease of Commercial & Industrial) was amended by adding language from HB1075. The provisions in HB1075 amends existing long-term leases of commercial and industrial properties, and to provide a tax benefit for lessors who sell the leasehold interest and all improvements to lessees. Essentially, it would change the terms of the original lease agreement between parties to the detriment of the lessor and to the benefit of the lessee. This bill also violates the contract clause of the constitution, that forbids any state from passing a law that retroactively impairs the obligation of contracts. The committee deferred decision making until Tuesday.
SB2407, SD1, HD1 (Real Estate Appraisers) prohibits financial institutions and mortgage brokers from improperly influencing the report, result, or review of a real estate appraisal. HAR testified that any future amendments should be limited to financial institutions and mortgage brokers, and not real estate licensees.
HB2224, HD1, SD1 (Group Health for Sole Proprietors) requires that group health plans offer service to self-employed individuals. First, an individual must be licensed by the Department of Commerce and Consumer Affairs. Health provider are permitted to limit date of enrollment and impose a one-year re-enrollment. These conditions create a framework for health providers to establish a plan.
For the most current and detailed information on bills, go to http://www.capitol.hawaii.gov for bill status and descriptions.