STAND. COM. REP. NO. 2558

Honolulu, Hawaii

RE:    S.B. No. 1809

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 1809 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this measure is to provide transparency and greater participation in and access to condominium unit owners' association meetings by clarifying that if the condominium board schedules a special association meeting pursuant to a petition, the meeting must be held within sixty days of the receipt of the petition for a special meeting.

     Testimony in support of this measure was submitted by the Hawaii Independent Condominium and Cooperative Owners and one private individual.

     Your Committee finds that chapter 514B, Hawaii Revised Statutes, provides an opportunity for condominium owners of an association to request a special association meeting by petition if at least twenty-five per cent of the unit owners, as shown in the association's record of ownership, sign a petition.  Furthermore, if notices for the special meeting are not sent out within fourteen days from the receipt of the petition, the petitioners are authorized to set the time, date, and place for the special meeting.  Testimony indicates that in at least one case, a condominium board has scheduled a special meeting the following year, more than several months after receipt of the original petition, which defeats the efforts and intent of the owners who petitioned for the special meeting.  Requiring the board of directors to schedule a special meeting to be held on a date within sixty days of the receipt of a petition and clarifying that if the board fails to schedule a special meeting, the special meeting set by the petitioners will be at the association's expense and will provide transparency and greater participation in and access to condominium unit owners' association meetings.

     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. 1809 and recommends that it pass Second Reading 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,

____________________________

RUSSELL S. KOKUBUN, Chair