STAND. COM. REP. NO. 861

Honolulu, Hawaii

RE:    S.B. No. 920

       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. 920 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this measure is to limit the use of condominium association member lists by requiring managing agents to obtain prior written consent from the board of directors of the condominium association, except to send meeting notices, association newsletters, and notices of proposed declaration and bylaw amendments.

     Testimony in support of this measure was submitted by the Hawaii Independent Condominium and Cooperative Owners, and two individuals.  The Real Estate Commission of the Department of Commerce and Consumer Affairs and the Hawaii Chapter of the Community Associations Institute submitted comments.

     Your Committee finds that condominium association member lists are the property of the association and members' information must be kept private.  The intent of this measure is to stop managing agents from using condominium member lists without the prior written consent of the board of directors of the condominium association.

     Your Committee has amended this measure to move the language limiting the use of condominium association member lists by managing agents from section 514B-154, Hawaii Revised Statutes (HRS), to section 514B-153, HRS, as section 514B-153 prescribes the requirements for association member lists, including handling procedures, and is the more appropriate section for this new requirement.

     Your Committee has also amended this measure to:

     (1)  Require a managing agent to receive prior written consent of the board of directors of the condominium association for any use of a member list, including political or commercial uses;

     (2)  Clarify that the member list is the property of the association and that managing agents or resident managers may not use the information on the member list to create a separate list as a way to avoid the requirements of section 514B-153, HRS; and

     (3)  Changing the effective date to promote further discussion.

     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. 920, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 920, 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