Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 3067 entitled:

begs leave to report as follows:

The purpose of this measure is to establish that, in the case of a voluntary conveyance, the grantee of a unit in a planned community association is jointly and severally liable with the grantor for all unpaid assessments against the grantor up to the time of the grant or conveyance.

Your Committee received testimony in support of this measure from the Community Associations Institute-Hawaii Chapter, Mililani Town Association, and one individual.

This measure establishes joint and several liability between the grantee and grantor of a unit in a voluntary conveyance of the unit and gives the grantee the right to recover from the grantor the amounts paid by the grantee. This measure protects planned community associations from the loss of assessments, and buyers from having a lien for unpaid assessments encumbering the property after closing.

Your Committee has amended this measure by making technical, nonsubstantive amendments for clarity and style.

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. 3067, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3067, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.