STAND. COM. REP. NO.  1803

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1704

      S.D. 1

      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 S.B. No. 1704, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this bill is to amend Chapter 514A, Hawaii Revised Statutes (HRS), by reenacting parts I, V, and VII, of chapter 514A that were previously repealed by Act 164, Session Laws of Hawaii 2004.

     Your Committee received testimony in support of this measure from the Hawaii Council of Associations of Apartment Owners, Hawaii Independent Condominium & Cooperative Owners, Community Associations Institute, Hawaii Chapter, and the Hawaii Association of Realtors.  The Department of Taxation and the Real Estate Commission's Condominium Review Committee submitted comments.

     Your Committee finds that Act 213, Session Laws Hawaii 2000, and Act 131, Session Laws Hawaii 2003, required the Real Estate Commission to review Chapter 514A, make findings and recommendations for the recodification of that chapter, and submit legislation consistent with its review to the Legislature.  The recodified condominium law was submitted and subsequently enacted as Act 164, Session Laws of Hawaii 2004, Act 93, Session Laws of Hawaii 2005, and Act 273, Session Laws of Hawaii 2006, as Chapter 514B, HRS.  However, parts I, V and VII of Chapter 514A were inadvertently repealed during the process.  This has made it more difficult for members of associations of apartment owners, boards, and others in the condominium business created prior to July 1, 2006, to understand and discern exactly what laws and rights are applicable to them.

     Your Committee has amended this measure by deleting its contents and inserting in its place the substance of H.B. No. 1627, H.D. 1.  The practical effect of this amendment is to:

(1)  Delete the amendments being made to sections 514A-14.5(c) and 514A-108(a), Hawaii Revised Statutes; and

(2)  Make a number of technical nonsubstantive changes in terms of style, formatting, and font.

     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 S.B. No. 1704, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1704, S.D. 1, 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