Reps. Romy M. Cachola and Jerry L. Chang were granted waivers by the state Real Estate Commission earlier this month.

Cachola (D, Kalihi Kai-Palama) qualified solely because he is a legislator, while Chang (D, South Hilo) received his exemption on the basis of having more than 20 years in the business. He also was eligible as a legislator.

The waivers allow the lawmakers to skip the 10 hours of continuing education courses normally required before agents can get their two-year licenses renewed. The state-issued licenses must be renewed by year's end for agents to remain active in the business.

This is the first year that qualified agents have been able to apply for the waivers - thanks to an obscure amendment that was tacked onto a bill in the 1995 legislative session.

The bill was unanimously adopted that year by both houses of the Legislature.

Cachola said he didn't consider his benefiting from a measure he voted for a conflict of interest. He said he didn't even know when he cast his vote that legislators were covered by the waivers.

"It was never the intent of yours truly to take advantage of the exemption," said Cachola, who has 18 years as a licensed real estate agent.

Chang, who says he has been licensed since 1975, acknowledged that his benefiting from the waiver bill could seem like a conflict. But he said he only did what was allowed by law.

"Since it's there, I'll take advantage of it," said Chang, noting that his busy schedule didn't permit him to fit in the classes.

The focus of the 1995 bill was to make continuing education requirements, which were set to expire later that year, permanent for real estate agents. With no advance public notice, the measure was amended at its final public hearing to include what is probably the most generous waiver policy in the nation.

The waiver provision was added to make the bill acceptable to the Senate, the amendment's authors have said.

Full-time agents with at least 20 years experience or attorneys, accountants and trustees of charitable trusts who are involved in real estate full-time are eligible. Hawaii public-service "participants" - a euphemism for legislators and other public workers - also qualify if they have been involved with real estate or real estate law for eight preceding years.

The commission has granted more than 700 waivers since September, sparking numerous complaints from agents who are forced to take the classes.

Former Sen. Donna Ikeda, who lost her re-election bid last month, and former Rep. Mary-Jane McMurdo, who didn't seek re-election, were among the waiver recipients.

McMurdo sought her exemption based on 20-plus years in the industry, while Ikeda was granted a waiver based on her former legislative position.

Critics of the waivers say the state should be toughening the education requirements, not relaxing them. They note that lawsuits against Hawaii agents have risen dramatically the past few years, underscoring the need for sales people to keep on top of changes in real estate law. The continuing education curriculum includes a mandatory class on law and ethics.

From a liability perspective, Hawaii is one of the riskiest markets in the country for agents, and "it doesn't make sense" to loosen education requirements in that kind of environment, said Patricia Yee, an account executive for American Home Shield.

American sells liability insurance from Employers Reinsurance Corp., one of the country's largest such underwriters, to Hawaii real estate brokerages.

ERC doubled its rates in Hawaii last year because of the big increase in lawsuits, Yee said.

The controversy over the waiver policy has prompted Rep. Ron Menor, head of the House Consumer Protection Committee, to say he wants to consider repealing it in the upcoming session.