HAR Chapter 99 – 2016 Amendments
“Broker-in-charge” redefined to allow a broker-in-charge to be appointed to more than one branch office. The change will provide brokerages with more flexibility in the management of real estate licensees and reflects the commission’s interpretation of broker-in-charge in its Laws and Rules Review Committee meeting November 14, 2001.
New Rule
“Broker-in-charge” means an individual broker licensee designated by the principal broker as the broker directly in charge of and responsible to the principal broker for the real estate operations conducted at the principal place of business or a branch office. The principal broker may designate one or more brokers-in-charge of the principal place of business or branch office, provided that there shall be at least one broker-in-charge of each branch office. A broker-in-charge may be designated to more than one branch office.
Old Rule
“Broker in charge” means an individual broker licensee designated by the principal broker as the broker directly in charge of and responsible to the principal broker for the real estate operations conducted at the principal place of business or a branch office. The principal broker may designate one or more brokers in charge of the principal place of business or branch office, provided that there shall be at least one broker in charge of each branch office.
§16-99-3(k) The proposed change clarifies and allows inactive, forfeited, and deceased licensees to receive compensation directly from a former brokerage firm for commissions earned while affiliated with that former brokerage firm.
New Rule
The brokerage firm shall not compensate a licensee of another brokerage firm in connection with a real estate transaction without paying directly or causing the payment to be made directly to the other brokerage firm. This requirement shall not apply in cases where the licensee or the licensee’s estate is receiving compensation from a former brokerage firm for commission earned while the licensee was affiliated with that former brokerage firm, regardless of whether the licensee is on inactive status or on forfeited status or deceased.
Old Rule
The brokerage firm shall not compensate a licensee of another brokerage firm in connection with a real estate transaction without paying directly or causing the payment to be made directly to the other brokerage firm. This requirement shall not apply in cases where the licensee is receiving compensation from a former brokerage firm for commission earned while affiliated with that former brokerage firm.
§16-99-3(o) The proposed change clarifies the circumstances under which a temporary principal broker and/or a broker-in-charge may be appointed. This amendment is intended to maintain consumer protection by ensuring proper management and oversight of a brokerage during the protracted absence of a principal broker and/or broker-in-charge.
New Rule
Prior. to the time the principal broker or the broker-in-charge is absent from the principal place of business for more than thirty calendar days, and no other broker-in-charge is registered for the principal place of business, the principal broker shall submit to the commission a signed, written notification of the absence designating a temporary principal broker or temporary broker-in-charge, who shall acknowledge the temporary designation by signing the notification. In case of prolonged illness or death where the principal broker or broker-in-charge is unable to act, another broker shall be designated as the temporary principal broker or broker-in-charge within thirty days of the illness or death with appropriate notification and statement of a licensed medical doctor certifying to the commission the inability of the broker to practice.
A temporary principal broker or broker-in-charge arrangement shall not exceed a period of six months unless, prior to expiration of the initial six-month period, the principal broker requests and obtains, upon showing of good cause for such extension, approval of the commission to extend the temporary arrangement for up to an additional six months.
Old Rule
Prior to the time the principal broker or the broker in charge is absent from the principal place of business for more than thirty calendar days, and no other broker in charge is registered with the principal place of business, the principal broker shall submit to the commission a signed, written notification of the absence designating a temporary principal broker or temporary broker in charge, who shall acknowledge the temporary designation by signing the notification. In case of prolonged illness or death where the principal broker or broker in charge is unable to act, another broker shall be designated as the temporary principal broker or broker in charge within thirty days of the illness or death with appropriate notification to the commission. A temporary principal broker or broker in charge arrangement shall not exceed a period of six months, with the right to extend prior to expiration for another six months for good cause and with the approval of the commission.
§16-99-3.1 “Contract between buyer and seller” redefined to replace “deposit, receipt, offer and acceptance” with “purchase contract” because the former term is obsolete and no longer used by the industry.
New Rule
“Contract between the buyer and seller” includes a purchase contract, an option, an offer to purchase, a sales contract, an offer to lease, or a lease.
Old Rule
Contract between the buyer and seller includes a “deposit receipt, offer and acceptance”, an option, an offer to purchase, a sales contract, an offer to lease, or a lease.
§16-99-4(d) The amendments to paragraphs (d) and (e) clarify the handling of trust funds and properties other than funds and require such funds or property be deposited or placed in an appropriate secure place by the next business day; and for property located in this state, the neutral escrow depository shall also be located in this state.
New Rule
(d) Every brokerage firm shall deposit or place trust funds received into a neutral escrow depository or in a trust fund account with some bank or recognized depository, which is federally insured, by the next business day following their receipts. The neutral escrow depository shall be located in the same state where the property is located.
Old Rule
(d) Every brokerage firm shall deposit or place trust funds received into a neutral escrow depository or in a trust fund account with some bank or recognized depository, which is federally insured, by the next business day following their receipts.
New Rule
(e) Each principal broker or broker-in-charge who receives personal property, other than funds, in trust for other people, shall safeguard the property by placing the property by the next business day in a secure place located in the State.
Old Rule
(e) Every principal broker or broker in charge who receives personal property, other than funds, in trust for other people, by the next business day shall safeguard the property by placing the property in a secure place located in the State.
§16-99-5.1 (a)(4) The phrase “commission approved” was replaced with “pursuant to Section 16-99-3(o)” for consistency with Section 16-99Old Rule-3(o), which is being amended.
New Rule
(a) An individual’s license shall be placed on an involuntary inactive status upon the occurrence of one or more of the following:
(4) The principal broker is unable to act in the case of prolonged illness or death and no temporary principal broker has been designated pursuant to section 16-99-3(o);
Old Rule
(a) An individual’s license shall be placed on an involuntary inactive status upon the occurrence of one or more of the following:
(4) The principal broker is unable to act in the case of prolonged illness or death and no commission approved temporary principal broker has been designated;
§16-99-5.1 (d) The proposed new subsection clarifies the circumstances under which a brokerage’s real estate license shall be involuntarily placed on inactive status.
New Rule
(d) A brokerage firm’s license, whether a corporation, limited liability company or partnership, shall be placed on an involuntary inactive status upon the occurrence of one or more of the following:(1) The principal broker’s license is placed on an inactive, forfeited, suspended, revoked, or terminated status;
(2) The brokerage firm is no longer registered with the business registration division
(3) The principal broker is unable to act in the case of prolonged illness or death and no temporary principal broker has been designated pursuant to section 16-99-3(o);
(4) The brokerage firm has no approved place of business;
(5) The principal broker is absent from the place of business for more than thirty days, or moves out-of-state, and no commission approved temporary principal broker or broker-in-charge has been designated pursuant to section 16-99-3(o).
Old Rule
N/A
§16-99-19.1 (a)(2)(B) The amendment clarifies that a trade name used by a sole proprietor must be currently registered with the Business Registration Division.
New Rule
(a) An individual may designate a license name different from the individual’s legal name, provided that:
(2) The license name of a sole proprietor broker:
(B) May include a trade name currently registered by the broker with the business registration division and with the commission, provided that the trade name complies with section 467-9, HRS.
Old Rule
(a) An individual may designate a license name different from the individual’s legal name, provided that:
(2) The license name of a sole proprietor broker:
(B) May include a trade name registered by the broker with the business registration division and with the commission, provided that the trade name complies with section 467-9, HRS.
§16-99-19.1 (b)(2)
Clarification: The amendment clarifies that a trade name used by a corporation, limited liability company, or partnership must be currently registered with the Business Registration Division.
New Rule
(b) The license name of a corporation, limited liability company, or partnership:
(2) May include a trade name currently registered by the entity with the business registration division and with the commission, provided that the trade name complies with section 467-9, HRS.
Old Rule
(b) The license name of a corporation, limited liability company, or partnership:
(2) May include a trade name registered by the entity with the business registration division and with the commission, provided that the trade name complies with section 467-9, HRS.
§16-99-19.2 (a)(2) The proposed amendment will clarify the experience requirements for broker applicants within the state will be limited to at least three years within the five-year period immediately prior to the application for experience certificate.
(a) Candidates for the broker examination shall submit to the commission a completed experience certificate application together with:(2) A certified statement by the principal broker or a broker in charge of each of applicant’s brokerage firms during the three years immediately preceding the application for experience certificate, that attests to the length of time that the applicant has been actively associated or employed full-time with the brokerage firm.
Applicants shall have experience in this State as a full-time Hawaii-licensed real estate salesperson, associated as an employee or independent contractor with an active Hawaii-licensed brokerage firm, for at least three years within the five-year period immediately prior to the application for experience certificate.
Old Rule
(a) Candidates for the broker examination shall submit to the commission a completed experience certificate application together with:(2) A certified statement by the principal broker or a broker in charge of each of applicant’s brokerage firms during the three years immediately preceding the application for experience certificate, that attests to the length of time that the applicant has been actively associated or employed full-time with the brokerage firm.
Applicants shall have experience in this State as a full-time Hawaii-licensed real estate salesperson, associated as an employee or independent contractor with an active Hawaii-licensed brokerage firm, for the three-year period immediately priorto the application for experience certificate.
§16-99-19.2 (d) The proposed amendment will clarify the experience requirements for out-of-state broker applicants consistent with paragraph (a).
§16-99-36 The proposed amendments reflect the changes in real estate salesperson and real estate broker pre-license curricula, increasing the minimum number of class hours from forty-five to sixty class hours for the real estate salesperson curriculum and forty-six to eighty class hours for the real estate broker curriculum. The change in the broker curriculum was approved by the commission in its July 14, 2004 Education Review Committee meeting and the change in salesperson curriculum was approved by the commission in its July 13, 2005 Education Review Committee meeting.
Old Rule
The education requirement for the salesperson license examination shall be satisfied by successful completion of a curriculum in real estate at an accredited institution, consisting of a minimum of sixty class hours and conforming to the approved curriculum for salesperson adopted by the commission or such equivalent education or experience as shall be determined by the commission. The education requirement for the broker license examination shall be satisfied by successful completion of .a curriculum in real estate at an accredited institution, consisting of a minimum of eighty class hours and conforming to the approved curriculum for brokers adopted by the commission or equivalent education or experience as shall be determined by the commission. A “class hour” as used in this section means sixty minutes of classroom instruction.
New Rule
The education requirement for the salesperson license examination shall be satisfied by successful completion of a curriculum in real estate at an accredited institution, consisting of a minimum of forty-five class hours and conforming to the approved curriculum for salesperson adopted by the commission or such equivalent education or experience as shall be determined by the commission. The education requirement for the broker license examination shall be satisfied by successful completion of a curriculum in real estate at an accredited institution, consisting of a minimum of forty-six class hours and conforming to the approved curriculum for brokers adopted by the commission or equivalent education or experience as shall be determined by the commission. A “class hour” as used in this section means sixty minutes of classroom instruction.
§16-99-37(a)(2) The proposed amendment will clarify that applicants must be graduates of an accredited law school in the United States.
New Rule
(a) The commission’ may grant an equivalency to the respective education requirements for applicants for the salesperson license examinations for:(2) Graduates of an accredited law school in the United States; or
Old Rule
(a) The commission may grant an equivalency to the respective education requirements for applicants for the salesperson and broker license examinations for:(2) Graduates of an accredited law school;
§16-99-37(a)(3) The proposed amendment will clarify that applicants must be graduates of an accredited college or university in the United States.
New Rule
(a) The commission’ may grant an equivalency to the respective education requirements for applicants for the salesperson license examinations for:(3) Bachelor of arts or bachelor of science degree graduates of accredited colleges and universities in the United States who have majored in real estate or business.
Old Rule
(a) The commission may grant an equivalency to the respective education requirements for applicants for the salesperson and broker license examinations for:(3) Bachelor of arts or bachelor of science degree graduates of accredited colleges and universities who have majored in real estate or business;
16-99-37(a)(4) and (5) Are deleted as approved by the commission at its July 13, 2005 Education Review Committee meeting.
New Rule
(a) The commission’ may grant an equivalency to the respective education requirements for applicants for the salesperson license examinations for:(4) deleted
(5) deleted
Old Rule
(a) The commission may grant an equivalency to the respective education requirements for applicants for the salesperson and broker license examinations for:
(4) Those who have successfully completed at least six semester credits in real estate, business, business law, real estate development, or finance courses at an accredited college or university; and
(5) Those who have received a professional designation and recognized certificates of completion as accepted by the commission including a GRI designation; certificate in advanced real estate from the University of Hawaii, small business management program.
§16-99-37(b)(1) and (2) The proposed new section is added addressing educational equivalencies for broker candidates consistent with paragraph (a).
New Rule
(b) The commission may grant an equivalency to the respective education requirements for applicants for the broker license examinations for:(1) Those who hold a current license that was active within one year immediately prior to the date of application as a broker in another state with similar or superior education requirements as determined by the commission; and
(2) Graduates of an accredited law school in the United States.
Old Rule
NA
§16-99-52.1 (b) The proposed amendment reflects changes in the real estate salesperson and real estate broker pre-license curricula, increasing the minimum required class hours.
New Rule
(b) An independent study course for satisfaction of the salesperson education requirement shall reasonably require the student to expend a minimum of sixty hours in completing the course. An independent study course for satisfaction of the broker education requirement shall reasonably require the student to expend a minimum of eighty hours in completing the course.
Old Rule
(b) An independent study course for satisfaction of the salesperson education requirement shall reasonably require the student to expend a minimum of forty-five hours in completing the course. An independent study course for satisfaction of the broker education requirement shall reasonably require the student to expend a minimum of forty-six hours in completing the course.
§16-99-53(c)(8)(C) The proposed new subsection deletes the surety bond requirement for schools offering independent study pre-license real estate salesperson and real estate broker courses delivered electronically or as approved by the commission.
New Rule
(c) The following shall accompany an application:
(8) A surety bond to the commission conditioned for the protection of the contractual rights of real estate students in an amount equal to the sum of:
(C) No bond shall be required to cover real estate students only enrolled in an independent study course delivered electronically or as approved by the commission;
Old Rule
(c) The following shall accompany an application:
(8) A surety bond to the commission conditioned for the protection of the contractual rights of real estate students in an amount equal to the sum of:
(C) N/A
§16-99-58(d)(1) (d) The proposed amendment will require that an instructor candidate shall take and pass the instructor exam with a minimum passing score of eighty-five percent and adds the requirement that the instructor hold an unencumbered Hawaii real estate broker’s license.
New Rule
(d) Each instructor shall initially take and pass an examination with a minimum passing score of eighty-five per cent or as prescribed by the commission and shall:(1) Hold a current and unencumbered Hawaii real estate broker’s license, have at least three years full-time experience in real estate in Hawaii, and fulfill the present experience requirement for a Hawaii broker’s license;
(d) Each instructor shall initially take and pass an examination as prescribed by the commission and shall:
Old Rule
(1) Hold a current Hawaii real estate broker’s license, have at least three years full-time experience in real estate in Hawaii, and fulfill the present experience requirement for a Hawaii broker’s license;
§16-99-61 This section is amended to clarify that the date of issuance for a certificate of completion shall be the class completion date.
New Rule
A certificate of completion shall be issued by the school in a form and size approved by the commission, and shall be awarded only to a student who attends eighty per cent of the scheduled classes and who completes with a passing grade the final examination of a course of study conforming to the approved curriculum or who completes an independent study course under section 16-99-52.1. The certificate shall be valid for a period of two years from the date of issuance. The date of issuance shall be the class completion date.
Old Rule
A certificate of completion shall be issued by the school in a form and size approved by the commission, and shall be awarded only to a student who attends eighty per cent of the scheduled classes and who completes with a passing grade the final examination of a course of study conforming to the approved curriculum or who completes an independent study course under section 16-99-52.1. The certificate shall be valid for a period of two years from the date of issuance.
§16-99-62(a) (a) The proposed amendment will clarify that school completion records must be submitted to the commission within ten days of the class completion date and ten days of the issuance of a school completion certificate, as appropriate
New Rule
(a) Each school shall maintain records on the following:
(3) The names of the students to whom it issued a certificate of completion, the course for which the certificate of completion was issued, and the date when the certificate of completion was issued, which shall be submitted to the commission within ten days of the class completion date;
Old Rule
(a) Each school shall maintain records on the following:
(3) The names of the students to whom it issued a certificate of completion, the course for which the certificate of completion was issued, and the date when the certificate of completion was issued;
§16-99-62(b)(1) and (2)
The proposed amendment will require a school to submit a listing of students who have completed the course and other information requested by the commission.
New Rule
(b) Within ten days of issuance of a Hawaii school completion certificate, the school shall submit to the commission:
(1) A listing of students who have completed the course with their course completion certificate number, curriculum instructor names and date when the certificate of completion was issued; and
(2) Other information requested by the commission.
Old Rule
(b) These records shall be maintained for a three-year period, shall be kept current, and shall be available for inspection by the commission.
§16-99-66(a) The proposed amendment will revise the definition of “advertising” to recognize changes in technology.
New Rule
(a) For purposes of this subchapter, “advertising” means an announcement by an accredited real estate school for the purpose of promoting the school or soliciting students and shall include, but not be limited to, all printed, audio, and visual communications, such as newspaper advertisements, direct public mailings, books and periodicals, television and radio commercials, current and future technology, and others.
Old Rule
(a) For purposes of this subchapter, “advertising” means an announcement by an accredited real estate school for the purpose of promoting the school or soliciting students and shall include, but not be limited to, all printed and visual communications, such as newspaper advertisements, direct public mailings, books and periodicals, television and radio commercials, and others.
§16-99-67(b) The proposed amendment deletes the option of having the school include information on financing plans and placement services in their school brochure or catalogue as the information is no longer necessary.
New Rule
(b) Each brochure or catalogue shall be updated periodically so that the information contained in it is current.
Old Rule
(b) Each brochure or catalogue may include the following:
(1) School’s financing plans; and
(2) School’s placement services.
“Continuing education hours” Redefined for consistency with 467-11.5, HRS.
New Rule
“Continuing education hours” means the mandatory hours as required in section 467-11.5, HRS.
Old Rule
“Continuing education hours” means the ten mandatory hours as required in section 467-11.5, HRS.
“Course and course offering”” Redefined to add the phrase “and a maximum as the commission may determine” allowing the Commission to set the maximum clock hours.
New Rule
“Course and course offering” means a continuing education module of instruction certified by the commission, consisting of a minimum of three clock hours and a maximum as the commission may determine.
Old Rule
“Course and course offering” means a continuing education module of instruction certified by the commission, consisting of a minimum of three clock hours.
§16-99-89(c) Is amended for consistency with 467-11.5, HRS, which was amended by SLH 2010, Act 9.
New Rule
(c) A licensee who is issued a Hawaii real estate salesperson license during an even-numbered year shall be deemed to have completed equivalent to the continuing education hours as required by section 467-11.5, HRS, and section 16-99-90.
Old Rule
(c) A licensee who is issued a Hawaii real estate salesperson license during an even-numbered year shall be deemed to have completed equivalent to the ten hours of continuing education required by section 467-11.5, HRS, and section 16-99-90.
§16-99-90 Is amended for consistency for consistency with 467-11.5, HRS.
New Rule
In renewing an individual license on an active status, the licensee shall provide the commission evidence of completing the continuing education hours as required in section 467-11.5 HRS, including a mandatory core course if specified by the commission, which have been completed on or before the commission-prescribed deadline of an even-numbered year and within the current license biennium. Such evidence shall include but not be limited to submission by the provider, using a commission-prescribed electronic method, of the licensee’s name, license number, license status, course and instructor names, and other information the commission may require.
Old Rule
In renewing an individual license on an active status, the licensee shall provide the commission evidence of completing ten hours of continuing education, including a mandatory core course if specified by the commission, which have been completed on or before the commissionprescribed deadline of an even-numbered year and within the current license biennium. Such evidence shall include but not be limited to submission by the provider, using a commission-prescribed electronic method, of the licensee’s name, license number, license status, course and instructor names, and other information the commission may require.
§16-99-93 Is amended by inclusion of a reference to section 467-11.5, HRS for consistency with that section.
New Rule
Except as permitted by sections 16-99-91 and 16-99-92, continuing education clock hours obtained in excess of the continuing education hours required by section 467-11.5, HRS, cannot be carried forward to satisfy the continuing education requirements for any subsequent license renewal.
Old Rule
Except as permitted by sections 16-99-91 and 16-99-92, continuing education clock hours obtained in excess of ten hours cannot be carried forward to satisfy the continuing education requirements for any subsequent license renewal.
§16-99-95 Is amended to limit the time within which a licensee may not take a continuing education course for which the licensee has received a certificate to two consecutive biennia.
New Rule
Except as provided by the commission or by this subchapter, a licensee shall not take a continuing education course for which the licensee has already received a certificate within two consecutive biennia.
Old Rule
Except as provided by the commission or by this subchapter, a licensee shall not take a continuing education course that is substantially similar to a course for which the licensee has already received a certificate. A continuing education provider shall not issue to a licensee a certificate for substantially the same course completed by the licensee. “Substantially similar” as used in this section means that at minimum, seventy-five per cent of the course content of a course is repeated in another course offering.
§16-99-96 Allows instructors to receive a one-time continuing education credit for core/elective courses taught within two consecutive biennia.
New Rule
In satisfying the continuing education hours of a license period, an instructor who is a real estate licensee, may use once in any two consecutive biennium, the clock hours for each course taught except the core course which may be recognized for clock hours each biennium. The one time use applies even when the instructor has taught the course more than once.
Old Rule
In satisfying the continuing education hours of a license period, an instructor who is a real estate licensee, may use once in any biennium, the clock hours for each course taught. The one time use applies even when the instructor has taught the course more than once.
§16-99-99(a)(7) The proposed amendment will clarify that a bond is not required for a course delivered electronically or as approved by the commission
New Rule
(a) A continuing education provider shall be responsible for the administration of the course offering. An application for registration as a continuing education provider shall be made to the commission on a form prescribed by the commission. The application shall be submitted with a nonrefundable application fee in an amount as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91, HRS, and include at least the following:
(7) A surety bond conditioned for the protection of the contractual rights of real estate students in an amount not less than $2,000 issued by a surety authorized to do business in the State; provided that no bond shall be required if the course is delivered electronically or as approved by the commission;
Old Rule
(a) A continuing education provider shall be responsible for the administration of the course offering. An application for registration as a continuing education provider shall be made to the commission on a form prescribed by the commission. The application shall be submitted with a nonrefundable application fee in an amount as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91, HRS, and include at least the following:
(7) A surety bond conditioned for the protection of the contractual rights of real estate students in an amount not less than $2,000 issued by a surety authorized to do business in the State; provided that no bond shall be required if the provider submits a statement certifying that no moneys shall be collected from real estate students in advance of the class date; and
§16-99-100(a)(4) The proposed amendment replaces “major course concepts” with “clearly defined course objectives.” Course objectives need to be clear and specific. The original “major course concepts” is too broad.
New Rule
(a) The commission may approve and certify a continuing education course when the course satisfies all of the following:
(4) Includes in the course clearly defined course objectives;
Old Rule
(a) The commission may approve and certify a continuing education course when the course satisfies all of the following:
(4) Includes in the course major course concepts;
§16-99-100(a)(6) The proposed amendment replaces the phrase “at least” with “a minimum of.”
New Rule
(a) The commission may approve and certify a continuing education course when the course satisfies all of the following:
(6) Consists of a minimum of three clock hours;
Old Rule
(a) The commission may approve and certify a continuing education course when the course satisfies all of the following:
(6) Consists of at least three clock hours;
§16-99-100(a)(10) The proposed amendment broadens the means by which a course may be delivered.
New Rule
(a) The commission may approve and certify a continuing education course when the course satisfies all of the following:
(10) Is delivered live, or by other means of communication as approved by the commission;
Old Rule
(a) The commission may approve and certify a continuing education course when the course satisfies all of the following:
(10) Is delivered live, by means of interactive television, or by other means of interactive communication as approved by the commission;
§16-99-101(3) Terminology in the section is amended to reflect current technology. The terms “salesmanship and sales psychology” are deleted as these topics are appropriate to the real estate profession.
New Rule
(3) Teaches general office skills, such as word processing, basic internet skills, computer software or other technology, personal motivation, and time management;
Old Rule
(3) Teaches office and business skills, such as typing, speed reading, memory improvement, report writing, personal motivation, salesmanship, sales psychology, and time management;
§16-99-101(4) The section is amended to clarify course material which may be construed as sales or self-promotion related to a specific product or service.
New Rule
(4) Includes sales or promotions of a product or service or other meetings held in conjunction with general real estate brokerage activity
Old Rule
(4) Includes sales promotions or other meetings held in conjunction with general real estate brokerage activity;
Courses Not Acceptable for Continuing Education Certification
§16-99-103(a) The proposed amendment decreases the number of calendar days prior to the course offering date from fourteen to three, in recognition of advances in current technology.
New Rule
(a) A provider shall not solicit students for registration for any offering of a certified continuing education course without first notifying the commission on a form prescribed by the commission at least three calendar days prior to the course offering date In notifying the commission, the provider shall do all of the following:
Old Rule
(a) A provider shall not solicit students for registration for any offering of a certified continuing education course without first notifying the commission on a form prescribed by the commission at least fourteen days prior to the course offering date. In notifying the commission, the provider shall do all of the following:
Criteria for Certification of a Continuing Education Instructor
§16-99-104(d)(3) The proposed amendment allows the Commission to set minimum standard requirements for certification of continuing education instructors by the provider.
New Rule
(d) Any individual meeting the criteria for approval as a continuing education instructor, may not be certified by the provider if the individual has been:
(3) Determined to have scored below the minimum requirements as established by the commission, which may include a standardized student evaluation rating.
Old Rule
(d) Any individual meeting the criteria for approval as a continuing education instructor, may not be certified by the provider if the individual has been:
(3) N/A
§16-99-104(e) The proposed amendment ensures that continuing education instructors receive necessary training prior to teaching in each biennium. The current method described in the deleted language proved to be ineffective.
New Rule
(e) The commission may require that each instructor complete an instructor’s workshop as approved by the commission prior to teaching in each biennium.
Old Rule
(e) The commission may require that each instructor complete an instructor’s workshop approved by the commission or complete viewing a commission approved audio videotape of such workshop within the biennium.
§16-99-109(8) The proposed amendment revises section references, replacing “16-99-112 and 16-99-113” with “16-99-111 and 16-99-112”.
New Rule
The commission may revoke or suspend a continuing education provider’s registration for any of the following causes:
(8) The provider fails to satisfy the record keeping requirements of sections 16-99-111 and 16-99-112;
Old Rule
The commission may revoke or suspend a continuing education provider’s registration for any of the following causes:
(8) The provider fails to satisfy the record keeping requirements of sections 16-99-112 and 16-99-113;
§16-99-112(a) The proposed amendment adds “student evaluations” as a requirement.
New Rule
(a) A real estate continuing education provider shall maintain for a period of at least four years records of course offerings (including names of instructors, dates of and locations of course offerings), student attendance, student registration, course completions, student evaluations, and personal information and resumes of its instructors and administrators. Each student record shall include, at a minimum, the following:
Old Rule
(a) A real estate continuing education provider shall maintain for a period of at least four years records of course offerings (including names of instructors, dates of and locations of course offerings), student attendance, student registration, course completions, and personal information and resumes of its instructors and administrators. Each student record shall include, at a minimum, the following:
§16-99-112(b) The proposed amendment aims to clarify the language of the section.
New Rule
(b) Within ten days of the end of any continuing education course or completion of course offered by alternative delivery methods, the continuing education provider shall issue to each student having completed the course a certificate of completion of course as prescribed by the commission. Except as provided in sections 16-99-91 and 16-99-92, the continuing education certificate of completion of course is valid only for the biennium license period in which the course was completed.
Old Rule
(b) Within ten days of the end of any continuing education course or completion of course offered by alternative delivery methods, the continuing education provider shall issue to each student having completed the course a certificate of completion of course on a form prescribed by the commission. Except as provided in sections 16-99-91 and 16-99-92, the continuing education certificate of completion of course is valid only for the biennium license period in which the course was completed.
§16-99-112(d) The proposed amendment reflects the current practice of making course completion certificates available online.
New Rule
(d) A real estate continuing education provider shall issue a student a duplicate certificate of completion of course upon receipt of a student’s written request for such a certificate.
Old Rule
(d) A real estate continuing education provider shall issue a student a duplicate certificate of completion of course upon receipt of a student’s written request for such a certificate. The provider may charge the student a reasonable charge for honoring the request. The provider shall give written notice to the commission when issuing a duplicate certificate of completion. The notice shall include the name of the student, the student’s license number and status, name of the course, course offering number and date, provider’s name, certificate numbers of the original and duplicate certificates, and date on which the duplicate certificate was issued.
§16-99-121(b)(1) – (6) The proposed amendment revises the administrator’s responsibilities to include administration and maintenance of student evaluations and rating standards of instructors, as provided by section 16-99-121.1.
New Rule
(b) The administrator shall be responsible for:
(1) Complying with the commission’s rules relating to continuing education providers as set forth in this subchapter;
(2) Providing reports and information as may be required by the commission;
(3) Informing the commission in writing ten business days prior to any changes in the information on the application for registration as a provider;
(4) Directing and supervising the continuing education provider’s faculty, staff, and program;
(5) Administering and maintaining the student evaluations; and
(6) Ensuring that instructors do not fall below minimum rating standards.
Old Rule
(b) The administrator shall be responsible for:
(1) Complying with the commission’s rules relating to continuing education providers as set forth in this subchapter;
(2) Providing reports and information as may be required by the commission;
(3) Informing the commission in writing ten business days prior to any changes in the information on the application for registration as a provider;
(4) Directing and supervising the continuing education provider’s faculty, staff, and program.
(5) N/A
(6) N/A
§16-99-121.1 A new section is added that establishes a provider implemented evaluation system that would enable the commission to monitor the quality of instructors. Student evaluations will provide objective input. The amendment address concerns raised by the Hawaii Association of Realtors and was approved by the commission at its February 9, 2011 Laws and Rules Review Committee meeting.
New Rule
(a) Course providers shall implement a standardized student evaluation process as determined by the commission.
(b) Course providers shall ensure that student evaluations of instructors do not fall below the minimum rating standards as determined by the commission.
Old Rule
N/A
§16-99-147(f) The proposed deletions and amendments clarify the registration requirements for a condominium hotel operator who is not a real estate broker consistent with language in 467-30(b)(1), HRS.
New Rule
(f) A registration application made pursuant to section 467-30(g)(2), HRS, shall be submitted to the commission. The applicant shall certify for each condominium project, unless otherwise approved by the commission, zoning information that the condominium hotel is in a hotel or transient lodging zone; together with submitting true copies of the condominium project declaration and bylaws certified by the bureau of conveyances or land court containing specific language permitting transient lodgings for periods of less than thirty days.
Old Rule
(f) An application for an exemption or exclusion from the provisions of section 467-30(b)(1), HRS, shall be made on a form provided by the commission. The applicant shall submit for each condominium project, unless otherwise approved by the commission, zoning information, verified by a county official that the condominium hotel is in a hotel or transient lodging zone; together with true copies of the condominium project declaration and bylaws certified by the bureau of conveyances or land court specifically permitting a condominium hotel.
§16-99-147.1 A new section is added to conform to language set forth in section 467-30, HRS.
New Rule
The condominium hotel operator shall operate only in areas specifically authorized by county zoning codes. The condominium project declaration and bylaws shall specifically permit transient lodging of less than thirty days.
Old Rule
N/A
§16-99-147.2 A new section is added that sets forth Commission policy, based upon section 467-30 (j), HRS, that only those without a real estate license may register as a condominium hotel operator, and further, that where a real estate licensee is part of an entity which operates a condominium hotel (e.g., general partner or employee of a partnership, officer or employee of a corporation, member of a member-managed limited liability company, or a principal who directly manages or is responsible for a condominium hotel operation), the entity may not register.
New Rule
(a) Only those persons who do not hold a real estate license, either salesperson or broker, may register as a condominium hotel operator.
(b) Where an entity includes the following persons holding a real estate salesperson or broker’s license, that entity may not register as a condominium hotel operator:
(1) General partner or employee of a partnership condominium hotel operator;
(2) An officer or employee of a corporation condominium hotel operator;
(3) A member of a member-managed limited liability company condominium hotel operator; or
(4) A principal having direct management and responsibility over condominium hotel operations, including performing or facilitating the delivery of customary hotel services.
Old Rule
N/A
§16-99-148(g) A new section is added to clarify that a condominium hotel operator who is an individual having no employees and utilizing his or her own apartments or units to provide transient lodgings shall not be required to obtain and maintain a fidelity bond, which conforms to insurance industry practice of providing fidelity bond coverage only in situations where there are employees.
New Rule
(g) The fidelity bond shall not be required of an individual owner providing apartments or units for transient lodging; provided that ownership of the apartment or unit is in the individual owner’s name and not in an entity’s name; and provided further that the owner has no employees. Where the individual owner has an employee, the individual owner shall obtain and maintain a fidelity bond.
Old Rule
N/A
§16-99-149(a) The proposed amendment clarifies that condominium hotel operators are precluded from holding a license pursuant with § 467-30(g)(2) shall comply with section 16-99-4, which addresses handling of funds or property of others entrusted to the condominium hotel operator.
New Rule
(a) Condominium hotel operators, including condominium hotel operators who are precluded from holding a license as a real estate broker or real estate salesperson pursuant to 467- 30(g)(2), HRS shall comply with section 16-99-4. For purposes of compliance, when the condominium hotel operator is not a real estate broker, references to broker or principal broker in section 16-99-4 shall also mean “condominium hotel operator.”
Old Rule
(a) Condominium hotel operators, including condominium hotel operators who are excluded or exempt from obtaining a real estate broker’s license pursuant to section 467-30(f), HRS, shall comply with section 16-99-4. For purposes of compliance, when the condominium hotel operator is not a real estate broker, references to broker or principal broker in section 16-99-4 shall also mean “condominium hotel operator.”
§16-99-150(a) The proposed amendment revises terminology for consistency with Chapter 514B, HRS, by replacing the term “apartment” with “unit.”
New Rule
(a) The condominium hotel operator shall ensure that the terms and conditions agreed upon between the apartment or unit owner and the condominium hotel operator for operating a condominium hotel are in writing, and that a copy is given to each apartment or unit owner. The terms and conditions shall include but are not limited to financial obligations, responsibilities, and duties of the condominium hotel operator.
Old Rule
(a) The condominium hotel operator shall ensure that the terms and conditions agreed upon between the apartment owner and the condominium hotel operator for operating a condominium hotel are in writing, and that a copy is given to each apartment owner. The terms and conditions shall include but are not limited to financial obligations, responsibilities, and duties of the condominium hotel operator.