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 S.B. No. 2289, S.D. 1, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to update and increase the flexibility of the condominium property regimes law by allowing the Board of Directors (Board) of an association of apartment owners (AOAO) to install or authorize the installation of television signal distribution and telecommunications equipment on project common areas.

Verizon Hawaii testified in support of this measure and suggested an amendment.

Your Committee finds that S.B. No. 2289, S.D. 1, H.D. 1, authorizes the Board of a condominium association to:

Your Committee recognizes concerns raised by Verizon Hawaii that current language contained in the bill may be construed to grant super authority to a condominium Board to install, abandon, or change television signal distribution and telecommunications equipment without regard to existing contractual terms or obligations that may apply to the equipment. For example, telecommunications equipment such as a private branch exchange (PBX) or existing cabling in a building may have been installed under an agreement or contract which specified a minimum term of service. Under such circumstances, a condominium Board desiring to abandon or change such equipment should remain subject to existing contractual agreements.

Therefore, your Committee has amended this measure by amending Section 2 to read:

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. 2289, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2289, S.D. 1, H.D. 2.