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. 1345 entitled:

begs leave to report as follows:

The purpose of this measure is to remove limitations on the types of issues that may be adjudicated in an administrative hearing involving condominium disputes.

The Department of Commerce and Consumer Affairs (DCCA), Hawaii Independent Condominium and Cooperative Owners, and Community Associations Institute-Hawaii Chapter testified in support of this measure.

Act 164, Session Laws of Hawaii 2004 (Act 164), established the Condominium Dispute Resolution Pilot Program, a two-year program that allows certain condominium governance disputes unresolved by mediation to be heard by DCCA's Office of Administrative Hearings. Based on concerns that the number of requests for an administrative hearing on condominium disputes would tax the resources of DCCA, Act 164 established a thirty hearing-per-fiscal year limit on hearing requests, and restricted the types of governance issues that could be adjudicated at hearing.

Your Committee finds that, to date, there have been no requests for hearings filed with the pilot program; therefore, limits imposed on the types of disputes that may be administratively adjudicated should be removed so as to afford condominium owners and associations greater access to the hearings process. Accordingly, this measure repeals the issue-related limitations and allows an administrative hearings officer in the pilot program to consider any matter that was in dispute in the mediation that preceded the hearing. Your Committee notes that the thirty hearings-per-fiscal year limit continues to be in effect and will preclude the program from becoming overwhelmed with hearing requests.

Your Committee has amended this measure by deleting unnecessary amendments to Act 164 that duplicate the provisions of section 514A-121.5, Hawaii Revised Statutes, and by deleting the conditional effective date provisions.

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. 1345, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1345, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.