STAND

STAND. COM. REP. NO.439

Honolulu, Hawaii

, 2003

RE: S.B. No. 1087

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1087 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to authorize a one year extension for the Real Estate Commission's review and proposed recodification of the condominium laws.

The Real Estate Commission (Commission), Hawaii Association of Realtors, Association Information Services, Inc., and Community Associations Institute-Hawaii Chapter testified in support of the measure. The Hawaii Independent Condominium and Cooperative Owners, Yacht Harbor Towers Owners, and four individuals testified in opposition to the measure. The Hawaii Council of Associations of Apartment Owners and an individual expressed concerns about the measure.

Act 213, Session Laws of Hawaii 2000, directed the Commission to review Hawaii's condominium property regimes law and develop draft legislation consistent with its recommendations for submission to the 2003 Legislature. This measure authorizes a one year extension of the review process and authorizes an appropriation of $95,000 from the Condominium Management Education Fund (CMEF) to the Department of Commerce and Consumer Affairs for related expenses.

Your Committee received testimony from condominium owners and associations expressing concerns about the use of additional CMEF moneys to fund the Commission's review since the CMEF is funded by annual assessments on condominium associations. Concerns were also raised that owners and condominium associations lack meaningful input on the recodification process because they lack representation on the recodification advisory committee which consists solely of attorneys. Therefore, your Committee has amended this measure to:

(1) Expand the membership of the recodification advisory committee to include representatives of the Hawaii Council of Associations of Apartment Owners, Hawaii Independent Condominium and Cooperative Owners, Community Associations Institute-Hawaii Chapter, Hawaii Association of Realtors, and Condominium Council of Maui; and

(2) Require the recodification advisory committee to meet:

(a) To review the final version of the recodification draft to be presented at public hearings throughout the State; and

(b) After the public hearings, to consider data received at the hearings and to make recommendations to the Commission before the final recodification draft is submitted to the Legislature.

Finally, it is your Committee's intention that the extension granted under this measure be final and that no further extensions for the recodification review be authorized.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1087, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1087, S.D. 1, and be referred to the Committee on Ways and Means.

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

		____________________________ RON MENOR, Chair