STAND. COM. REP. NO. 1130
Honolulu, Hawaii
, 2005
RE: S.B. No. 1132
S.D. 2
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1132, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"
begs leave to report as follows:
The purpose of this bill is to organize, deregulate, and provide for the consistency and ease of use of the condominium property regimes law. This bill completes the recodification of the condominum law begun in 2004 by Act 164, Session Laws of Hawaii 2004, which enacted three parts entitled, General Provisions, Applicability, and Management of Condominiums. Four new parts dealing with the development and sale of condominiums have been added, which are entitled:
(1) Sales to Owner-Occupants;
(2) Creation, Alteration, and Termination of Condominiums;
(3) Registration and Administration of Condominiums; and
(4) Protection of Condominium Purchasers.
The Real Estate Commission, Hawaii Association of Realtors, Hawaii Bankers Association, Community Associations Institute Hawaii, and the former Condominium Law Recodification Project Attorney for the Real Estate Commission testified in support of this bill.
Your Committee finds that the recodified condominium law is the product of four years of hard work by the Real Estate Commission and its volunteer Blue Ribbon Recodification Advisory Committee in consultation with stakeholders. Your Committee thanks all those who participated, and applauds their efforts.
Your Committee has amended this bill by replacing its substance with the substance of H.B. No. 781, H.D. 1, the companion measure previously heard and passed out by your Committee. As amended, this draft differs substantively from the prior Senate Draft 2 in that the bill:
(1) Amends section -149 of Act 164 to give associations the flexibility to invest funds in deposits, investment certificates, savings accounts, and certificates of deposit (CDs) of out-of-state financial institutions, and allows them to utilize the services of a securities broker when purchasing CDs;
(2) Does not repeal chapter 514A, Hawaii Revised Statutes, which will continue to govern developers and purchasers of a condominium project registered prior to the effective date of the recodified condominium law; and
(3) Contains different effective dates from the Senate Draft.
There are also numerous technical, nonsubstantive differences between this bill and the Senate Draft 2.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1132, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1132, S.D. 2, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ KENNETH HIRAKI, Chair |