STAND. COM. REP. NO. 868

Honolulu, Hawaii

RE:    S.B. No. 1654

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 1654 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM MANAGEMENT DISPUTE RESOLUTION,"

begs leave to report as follows:

     The purpose of this measure is to establish a process for condominium dispute resolution for condominiums governed by chapter 514A, Hawaii Revised Statutes (HRS).

     Specifically, this measure seeks to reenact section 28 of Act 164, Session Laws of Hawaii 2004 (Act 164), which created the Condominium Dispute Resolution Pilot Project within the Office of Administrative Hearings of the Department of Commerce and Consumer Affairs (Office of Administrative Hearings).

     Your Committee received testimony in support of this measure from the Office of Administrative Hearings, the Hawaii Independent Condominium and Co-op Owners, and the Hawaii Chapter of the Community Associations Institute.

     Your Committee finds that section 28 of Act 164, Session Laws of Hawaii 2004, created the Condominium Dispute Resolution Pilot Project within the Office of Administrative Hearings for condominiums created under chapter 514A, HRS.  This pilot project was repealed on June 30, 2006.

     Your Committee further finds that while a new condominium dispute resolution process has been established in chapter 514B, HRS, the process found in chapter 514B, HRS, does not apply to those condominiums still governed by chapter 514A, HRS.  This measure seeks to recreate a similar dispute resolution process for those condominiums still governed by chapter 514A, HRS.

     Your Committee has amended this measure, based partially upon the testimony of the Office of Administrative Hearings, by:

     (1)  Adding a sunset date of June 30, 2009;

     (2)  Allowing cases that were before the Office of Administrative Hearings under the Condominium Dispute Resolution Pilot Project, as created by Act 164, on June 30, 2006, to be reinstated and resolved under the provisions of this measure; and

     (3)  Making technical, nonsubstantive changes for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1654, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1654, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair