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. 1349 entitled:

begs leave to report as follows:

The purpose of this measure is to amend record keeping requirements for associations of apartment owners.

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

Currently, the law requires associations of apartment owners (associations) to retain certain financial records for the current and past year. This measure amends the record keeping requirements for associations by requiring them to retain these records for the current year, as well as the prior four years.

Your Committee noted concerns that there are associated costs and burdens for retaining records including storage and cataloging. However, your Committee also noted that some associations already retain their financial records for three years for tax purposes. Your Committee finds that these competing views merit further consideration. 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. 1349, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1349, S.D. 1, and be placed on the calendar for Third Reading.