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. 2105, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to establish a procedure allowing the prompt resolution of condominium management disputes.

Testimony in support of this bill was received from numerous concerned individuals, many of them condominium owners. Testimony in opposition was provided by the Department of Commerce and Consumer Affairs, Real Estate Commission, Hawaii Association of Realtors, and an individual. The Judiciary expressed concerns regarding the mediation provisions of the bill. The Community Associations Institute and Hawaii Council of Associations of Apartment Owners commented.

Your Committee finds that the current procedure for the resolution of condominium management disputes appears to need improvement. However, many concerns were expressed about this bill, in its current form.

Your Committee believes that the issues raised by this bill merit further discussion and has therefore amended the bill to change its effective date to July 1, 2099. Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

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. 2105, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2105, S.D. 2, H.D. 1, and be referred to the Committee on Finance.