STAND. COM. REP. NO.  342-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2812

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Housing, to which was referred H.B. No. 2812 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this bill is to ensure proper representation of home and business owners in mixed-use condominiums by:

(1)  Establishing a minimum number of members for condominium association boards of directors for mixed-use condominiums with a certain number of units and owners; and

(2)  Limiting the number of board members representing nonresidential-use units.

     Several concerned individuals supported this bill.  Several concerned individuals opposed this measure.

     Your Committee has amended this bill by:

(1)  Applying the board-composition requirements of this bill to projects with more than 75 residential-use and nonresidential-use individual units, and more than 25 individual owners;

(2)  Exempting time-share units from the board-composition requirements;

(3)  Prohibiting cumulative voting when voting to remove or replace members of condominium association boards of directors;

(4)  Deleting provisions limiting multiple non-residential-use units owned by a single entity to only one board member; and

(5)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2812, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2812, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

RIDA CABANILLA, Chair