S.B. 2871 Summary

• Removes fixed fund balance thresholds ($420,893 for contractors recovery fund, $1,713,510 for real estate education fund, $481,799 for real estate recovery fund, $1,819,971 for condominium education trust fund) that previously triggered automatic fee suspension or refund requirements.

• Authorizes the contractors license board and real estate commission to adjust fees biennially to maintain reasonable relation between fees generated and cost of services rendered by the recovery and education funds.

• Requires fund managers to consider five factors when determining fee adjustments: anticipated revenue frequency, reserve amounts for unanticipated reductions, anticipated expenses during biennial cycles, natural disasters or catastrophic weather impacts, and statutory payout adjustments.

• Allows fund balances to be capped at amounts determined biennially by the respective licensing boards and commissions, eliminating fixed statutory caps.

• Applies retroactively to July 1, 2020, and supersedes contrary provisions from Act 29, Session Laws of Hawaii 2019.