Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred H.B. No. 2792, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require owners of private roads to maintain private roads pursuant to an agreement or if there is no agreement, to divide the responsibility of the road in equal shares. This measure also allows county ordinances dealing with the maintenance of private roads to supersede this measure.

Testimony in support of this measure was submitted by the Hawaii Association of Realtors and Seattle Mortgage. Comments were also submitted by the Hawaii Bankers Association.

Your Committee finds that the lack of clarity regarding the responsibility for maintaining private roads has created problems among property owners and obstacles to mortgage financing. Your Committee believes that this measure begins to rectify the problem to make more mortgage financing available for home purchases and alleviates disputes regarding roadway maintenance among property owners who share a common private road or easement.

Your Committee noted concerns about a fairness issue that should be addressed. Specifically, situations have occurred when one owner paves a gravel road without the unanimous consent of the other owners and then seeks contribution for the maintenance of the upgraded road. To address this issue, your Committee requested that the testifiers meet to draft alternative language. However, your Committee has not received the requested language.

Your Committee has amended this measure by changing the effective date to July 1, 2010 to facilitate more discussion between all parties and allow more time to draft language that addresses the fairness issue.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2792, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2792, H.D. 1, S.D. 2.