CONFERENCE COMMITTEE REPORT NO. 139

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2222
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2222, H.D. 1, S.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 direct the Real Estate
Commission (Commission) to review Hawaii's existing condominium
laws and propose a recodification.  The Commission is also
required to hold a public hearing to receive input and comments
from affected parties.  Appropriation for this measure is
provided by the Condominium Management Education Trust Fund,
rather than the General Fund.  

     Your Committee on Conference finds that the condominium law
was initially enacted in 1961 and is approximately thirty-nine
years old.  The initial condominium law was just an enabling
statute enacted soon after the Federal Housing Authority approved

 
 
                            CONFERENCE COMMITTEE REPORT NO. 139
                            Page 2



mortgages for condominiums.  From 1963 to the present, the
condominium law has been subject to numerous amendments and has
grown initially from 7 sections to the current 135 plus sections.
Since its initial enactment, many piece-meal amendments have been
made to the condominium law over the years, without regard to the
condominium law as a whole.  As a result, the condominium law
today is unorganized, not clearly understood and unresponsive to
the changing times.  

     Past studies conducted over the years by the Legislative
Reference Bureau and the Commission in connection with specific
issues relating to project registration and condominium
management and governance all lend support to a major
recodification effort.

     It is your Committee's understanding that the Commission
continues to hear from developers and their attorneys that the
law is confusing, overly complicated, and extremely expensive to
comply with, given Hawaii's current economic and real estate
market.  

     Accordingly, your Committee on Conference is in agreement
that a study should be performed to recodify the condominium law
so that it is easy to understand and user friendly.

     After careful consideration, your Committee on Conference
has incorporated the proviso submitted by the division
administrator of the Professional & Vocational Licensing Division
by amending the appropriation provision to establish a full-time
temporary specialist position, instead of a full-time temporary
position.  The amendment provides that the appropriation may also
be used for other current expenses.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 2222, H.D. 1, S.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 2222, H.D. 1, S.D. 1, C.D. 1.

 
 
 
 
 
 
 
 
 
                            CONFERENCE COMMITTEE REPORT NO. 139
                            Page 3




                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE        ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              RON MENOR, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       BRIAN Y. YAMANE, Co-Chair




______________________________
ROD TAM, Co-Chair