Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1713 entitled:

begs leave to report as follows:

The purpose of this bill is to require an association of apartment owners, association board, or managing agent that has received an owner's request for information and intends to assess fees for providing that information, to notify the owner in writing of its intent prior to assessment. The bill also requires that owners be given a reasonable opportunity to contest fees and submit unresolved disputes to arbitration.

Hawaii Independent Condominium and Cooperative Owners, Hawaiiana Management Company, Ltd., and six concerned individuals submitted testimony in support of this bill. The Real Estate Commission supported the intent of this bill and recommended a moratorium on condominium legislation until 2003 because of ongoing recodification of the condominium law. The Hawaii Council of Associations of Apartment Owners and the Community Associations Institute commented on this bill.

Your Committee finds that apartment owners who have requested legal or other information have been assessed fees for this information without being aware that assessments would be forthcoming. Your Committee further finds that arbitration is an expensive procedure, and that mediation provides a more cost-effective method of dispute resolution.

Your Committee has amended this bill by:

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 H.B. No. 1713, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1713, H.D. 1, and be placed on the calendar for Third Reading.