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. 1348 entitled:

begs leave to report as follows:

The purpose of this measure is to require associations of apartment owners to maintain certain records on the property if the association or a resident manager maintains an office on the property.

The Hawaii Independent Condominium and Cooperative Owners and one individual submitted testimony in support of this measure. Mililani Town Association submitted testimony in opposition to this measure.

Currently, the law requires financial statements and board of directors' meeting minutes to be available for review by apartment owners at a convenient place designated by the board of directors. This measure clarifies that the financial statements and the board of directors' meeting minutes must be available at the association of apartment owner's office or the resident manager's office if either office is located on the property.

Your Committee noted concerns that many of the "offices" located on apartment properties are simply resident manager's apartments and may not have the space or be equipped to handle the amendments provided in this measure. Thus, your Committee finds that this issue raises concerns that merit further discussion. Accordingly, your Committee has amended this measure by inserting an effective date of July 1, 2050 to ensure ongoing discussions on this issue.

Your Committee has further amended this measure by making technical, nonsubstantive stylistic changes.

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. 1348, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1348, S.D. 1, and be placed on the calendar for Third Reading.