STAND. COM. REP. NO.  827

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1627

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1627 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this bill is to make necessary technical and conforming amendments related to Hawaii's recodified condominium law, Chapter 514B, Hawaii Revised Statutes (HRS), including:

(1) Reinserting in the real estate licensing law, a reference to Chapter 514A, HRS, the original condominium law that is still in effect, to allow disciplinary action to be taken against a real estate licensee for violation of that chapter;

(2) Clarifying what is to be included in the condominium developer’s public report and how the report must be delivered to a purchaser;

(3) Correcting a drafting error that inadvertently left out the fidelity bond requirement for condominium association registration; and

(4) Clarifying the transitional option for the registration and sale of a condominium for projects initially established under Chapter 514A, HRS, but that are transitioning to Chapter 514B, HRS.

The Community Associations Institute – Hawaii Chapter supported this bill.  The Real Estate Commission supported this measure with recommended amendments.

Your Committee finds that several parts of Chapter 514A, HRS, were inadvertently repealed within the three legislative Acts recodifying the condominium law.  This measure has been amended to reinsert those parts in Chapter 514A, HRS, retroactive to July 1, 2006.  This bill has also been amended as discussed and agreed to by the interested parties by allowing the developer of a project registered under Chapter 514A, HRS, an election to register the project under Chapter 514B, HRS.

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1627, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1627, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair