CONFERENCE COMMITTEE REPORT NO. 43

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 36
                                  S.D. 2
                                  H.D. 1
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 36, S.D. 2, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO CONDOMINIUMS," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to increase the clarity,
fairness, and economic efficiency of laws governing condominium
associations by:

     (1)  Permitting associations to collect delinquent common
          assessments directly from the tenant upon notice to the
          apartment owner;

     (2)  Allowing the association to cease providing services
          and privileges to an apartment that is delinquent in
          payment of common assessments; and


 
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     (3)  Specifying where and in what type of institutions and
          investments an association may place its funds.

     Your Committee on Conference has amended this measure by:

     (1)  Allowing associations to enforce liens created for
          delinquent maintenance fees, including non-judicial or
          power of sale foreclosure procedures; 

     (2)  Allowing associations to invest in obligations and
          mutual funds comprised solely of investments in the
          obligations of the United States Government, the State
          of Hawaii, or their respective agencies with maturity
          dates over ten years after the purchase date if a
          majority vote of the apartment owners at an annual or
          special meeting of the association or written consent
          of a majority of the apartment owners approves such
          investment;

     (3)  Requiring an association board to approve investments
          longer than one year and clearly disclose to owners all
          investments longer than one year at each year's
          association annual meeting; and 

     (4)  Making technical, nonsubstantive changes for purposes
          of clarity and style.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 36, S.D. 2, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 36, S.D. 2, H.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
RON MENOR, Chair                   ROD TAM, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ROMY M. CACHOLA, Member            MATTHEW M. MATSUNAGA, Co-Chair

 
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______________________________     ______________________________
MARILYN B. LEE, Member             AVERY B. CHUMBLEY, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
PAUL WHALEN, Member                COLLEEN HANABUSA, Member
                                   
                                   
                                   
                                   ______________________________
                                   LES IHARA, JR., Member
                                   
                                   
                                   
                                   ______________________________
                                   WHITNEY ANDERSON, Member

 
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