STAND. COM. REP. NO. 269

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 3
                                        S.D. 1




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

Sir:

     Your Committee on Government Operations and Housing, to
which was referred S.B. No. 3 entitled: 

     "A BILL FOR AN ACT RELATING TO THE REAL ESTATE COMMISSION,"

begs leave to report as follows:

     The purpose of this measure is to provide three additional
seats on the Real Estate Commission for representatives of
condominium associations.

     Testimony in favor of this measure was received from Hawaii
Council of Associations of Apartment Owners, Hawaii Independent
Condominium and Cooperative Owners, Hawaiiana Management Company,
Ltd., and one individual.  Testimony in favor of the intent of
this measure was received from the Community Associations
Institute.  Testimony opposed to this measure was received from
the Real Estate Commission and the Hawaii Association of
Realtors.

     Your Committee finds that the Real Estate Commission has
oversight over the implementation and enforcement of the
Condominium Property Regimes under chapter 514A, Hawaii Revised
Statutes (HRS), including the Condominium Education Fund.

     Your Committee finds that currently there are no condominium
owners or board members on the Real Estate Commission.  

     Your Committee finds that it would be prudent and helpful to
have representatives of condominium associations and their board

 
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members to discuss and participate in decision making under the
regulatory authority of the Real Estate Commission regarding
condominium issues.

     Additionally, your Committee finds that the Condominium
Management Education Fund is currently being used for personnel
that are not allocating all of their time to carrying out the
responsibilities of the Condominium Management Education Fund.

     Your Committee has amended the measure to require the Real
Estate Commission and the Department of Commerce and Consumer
Affairs to only use the Condominium Management Education Fund for
personnel that exclusively carry out the responsibilities of the
Condominium Management Education Fund.

     As affirmed by the record of votes of the members of your
Committee on Government Operations and Housing that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 3, as amended herein, and recommends that it
pass Second Reading in the form attached hereto as S.B. No. 3,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Government
                                   Operations and Housing,



                                   ______________________________
                                   ROD TAM, Chair

 
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