STAND. COM. REP. NO. 2625

                                   Honolulu, Hawaii
                                                     , 2000

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




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

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2527, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this bill is to clarify the law that requires
a condominium association board of directors that solicits
proxies with association funds to provide thirty days notice to
association members.

     The bill also allows the use of a copy, facsimile
telecommunication, or other reliable reproduction of a proxy in
lieu of the original.

     Your Committee finds that there appears to be considerable
confusion with respect to notice requirements of condominium
association board of directors that solicit proxies with
association funds.  The Legislature has repeatedly addressed the
issue of proxies over the years in an attempt to ensure that a
level playing field exists between individual owners and the
board of directors and managing agents.

     This bill removes any doubt as to the Legislature's intent
that association funds by an association board of directors may

 
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                                   STAND. COM. REP. NO. 2625
                                   Page 2


be used, with proper notification, only to "distribute" and not
"solicit" proxies from any apartment owner.

     Your Committee amended the bill by making technical changes
that have no substantive effect.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2527, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2527, S.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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