Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1137, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to increase investment options for associations that are subject to the provisions of the recodified condominium law by amending Act 164, Session Laws of Hawaii 2004, to allow a condominium association to retain a Hawaii-based securities broker to invest association funds in certificates of deposit from out-of-state lenders.

The Hawaii Bankers Association and Community Associations Institute Hawaii Chapter testified in support of this bill. The Hawaii Independent Condominium and Cooperative Owners opposed this measure.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1137, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1137, S.D. 1, H.D. 1.