Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2009, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to clarify that the requirement of owner approval to change the use of or to lease a condominium's common elements does not apply to the installation of telecommunications equipment.

Testimony in support of this measure was received from

T-Mobile USA, Inc., Community Association Institute, Hawaii Chapter, and Nextel Partners, Inc.

In general, the condominium property regimes law requires that the owners of 75 percent of a condominium's common interests must approve a condominium's board's decision to:

(1) Change the use of a condominium's common elements; or

(2) Lease common elements not actually used by any owner for

an originally intended specific purpose, if the lease has

a term of over five years.

Your Committee finds that Act 137, Session Laws of Hawaii 2002 (Act 137), provided an exception to this requirement and authorized a condominium association's board to approve the installation of television signal distribution and telecommunications equipment upon a condominium's common elements without seeking approval of apartment owners.

Your Committee further finds that despite the enactment of Act 137, some condominium association boards are being advised that owner approval is still required if a telecommunications installation agreement has or potentially could have a term greater than five years.

This proposed measure clarifies that licenses, leases, and other agreements, authorized by Act 137 are not subject to the owner approval requirement.

Your Committee has made technical, nonsubstantive amendments for style and clarity.

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. 2009, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2009, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.