Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2704 entitled:

begs leave to report as follows:

The purpose of this measure is to require the disclosure of a release or waiver of liability for a construction defect on the part of a seller of residential real property.

The Association of Apartment Owners of Lilipuna Condominiums, the Association of Apartment Owners of Waiau Gardens Kai-D, and five individuals testified in support of the measure.

Your Committee finds that this measure is designed to protect prospective purchasers of residential real property by providing them with relevant information necessary for these consumers to make informed decision regarding the purchase of residential real property. As such, this measure will equalize the bargaining power between sellers and prospective buyers.

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. 2704 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Hawaiian Affairs.