STAND. COM. REP. NO. 1279-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2527
                                     S.D. 2




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 2527, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this measure is to make clear that when a
board of directors of an association (board), as opposed to a
board member, intends to use association funds to distribute
proxies, the board must at least 30 days prior to distribution,
post in prominent locations within the condominium project,
notice of its intent to distribute the proxies.  The measure also
allows a copy, facsimile telecommunication, or other reliable and
complete reproduction of a proxy to be used in lieu of the
original proxy.

     Testimony in support of this measure was received from the
Real Estate Commission, Hawaii Council of Associations of
Apartment Owners, Hawaii Independent Condominium and Cooperative
Owners, and Community Associations Institute.

     Your Committee finds that this law corrects an ambiguity in
the condominium law that has confused condominium owners,
managers, and boards for more than a decade.  The bill also
increases the flexibility of the law without diluting protections
to apartment owners.


 
 
 
 
                                 STAND. COM. REP. NO. 1279-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2527, S.D. 2, and recommends that it pass
Second Reading and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair