STAND. COM. REP. NO. 466

Honolulu, Hawaii

RE:    S.B. No. 1499

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1499 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to require condominium projects and associations of apartment owners to submit information on the number and appraised value of leasehold units within their projects as part of their biennial registration.

     Your Committee received testimony in support of this measure from the Hawaii Council of Associations of Apartment Owners and one private citizen.  Your Committee received testimony in opposition to this measure from Management Information Consultants, Hawaii First, Inc., and one private individual.

     Your Committee finds that there is currently no accurate data available on the number of leasehold condominiums remaining in the State since conversion of leasehold to fee simple ownership of condominiums began in the 1990's.  Your Committee further finds that this information is useful for long-range land use and housing planning.  Your Committee notes that the proponents of this measure have agreed to an amendment to this measure that removes the requirement to report the appraised value of leasehold condominium units.

     Your Committee has amended this measure accordingly by:

     (1)  Deleting the requirement to report the appraised value of leasehold condominium units;

     (2)  Inserting an effective date of July 1, 2050, to allow for further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1499, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1499, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

ROSALYN H. BAKER, Chair