Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1336 entitled:

begs leave to report as follows:

The purpose of this measure is to amend the lease to fee conversion provisions for condominiums and cooperative housing corporations.

Testimony in support of this measure was submitted by the Queen Lili'uokalani Trust, St. Francis Healthcare System of Hawaii, Small Landowners Association of Hawaii, Small Landowners of Oahu, and two individuals. The Hawaii Council of Associations of Apartment Owners and the Hawaii Independent Condominium and Cooperative Owners submitted testimony in opposition to this measure.

This measure provides that a co-owner or co-lessor who is not a party to the offer to sell the leased fee interest will be given the right of first refusal. The co-owner or co-lessor must exercise the right within a specified time period, or the association of owners or cooperative housing corporations will then be given the right of first refusal for lease to fee conversions.

Your Committee finds that further discussions are necessary regarding these issues. Accordingly, your Committee has amended this measure by inserting an effective date of July 1, 2050 to ensure further discussion on this measure.

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. 1336, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1336, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.