SB505 SD1.DOC

SECTION 1. The legislature finds that mediation is an informal, inexpensive, and confidential process for resolving disputes quickly. Mediation may be particularly advantageous in a condominium setting because of the potential to preserve or to restore harmony within a condominium community.

The legislature further finds that fees paid into the condominium education trust fund come from condominium owners and developers. Dedicating a portion of the fund to support the mediation of condominium related disputes will benefit condominium owners and associations.

The purpose of this Act is to:

(1) Add support for mediation of condominium related disputes as one of the educational purposes that shall be supported by the condominium education trust fund;

(2) Beginning with the July 1, 2015, biennium registration, impose an additional annual condominium education trust fund fee dedicated to supporting mediation of condominium related disputes and specify the total fee into the condominium education trust fund. The additional fee shall be in addition to any fee prescribed by rules adopted by the director of commerce and consumer affairs pursuant to chapter 91, Hawaii Revised Statutes; and

(3) Require the real estate commission to make adjustments to the condominium education trust fund to ensure adequate funds are available for mediation of condominium related disputes and any mediation requests are fully accommodated prior to the commencement of the additional annual condominium education trust fund fee.

SECTION 2. Section 514B-71, Hawaii Revised Statutes, is amended to read as follows:

"[[]§514B-71[]] Condominium education trust fund. (a) The commission shall establish a condominium education trust fund that the commission [~~may~~] shall use for educational purposes. Educational purposes shall include financing or promoting:

(1) Education and research in the field of condominium management, condominium project registration, and real estate, for the benefit of the public and those required to be registered under this chapter;

(2) The improvement and more efficient administration of associations; [~~and~~]

(3) Expeditious and inexpensive procedures for resolving association disputes[.]; and

(4) Support for mediation of condominium related disputes.

(b) The commission [~~may~~] shall use any and all moneys in the condominium education trust fund for purposes consistent with subsection (a)."

SECTION 3. Section 514B-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each project or association with more than five units, including any project or association with more than five units subject to chapter 514A, shall pay to the department of commerce and consumer affairs [a]:

(1) A condominium education trust fund fee within one year after the recordation of the purchase of the first unit or within thirty days of the association's first meeting, and thereafter, on or before June 30 of every odd-numbered year, as prescribed by rules adopted pursuant to chapter 91[.]; and

(2) Beginning with the July 1, 2015, biennium registration, an additional annual condominium education trust fund fee in an amount equal to the sum of $1 times the number of condominium units included in the registered project or association to be dedicated to supporting mediation of condominium related disputes. The additional fee shall be in addition to any fee prescribed by rules adopted by the director of commerce and consumer affairs pursuant to chapter 91. The condominium education trust fund fee shall total $3 per unit until the commission adopts rules pursuant to chapter 91."

SECTION 4. Between the effective date of this Act and July 1, 2015, the real estate commission shall make adjustments to the condominium education trust fund to ensure adequate funds are available for mediation of condominium related disputes. The real estate commission shall ensure that requests for mediation received by the commission before July 1, 2015, are fully accommodated. The real estate commission and department of commerce and consumer affairs professional and vocational licensing division shall make adjustments as needed to their budgets to meet the requirements of this section.

SECTION 5. The department of commerce and consumer affairs professional and vocational licensing division's budget ceiling shall be amended to reflect the additional annual condominium education trust fund fee required by section 514B-72(a)(2), Hawaii Revised Statutes, and paid into the condominium education trust fund, established by section 514B-71, Hawaii Revised Statutes. On June 30 of every odd-numbered year, any unexpended additional amounts paid into the condominium education trust fund and initially dedicated to supporting mediation of condominium related disputes, as required by section 514B‑72(a)(2), Hawaii Revised Statutes, shall be used for educational purposes as provided in section 514B-71(a)(1),(2), and(3), Hawaii Revised Statutes.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2013.

Report Title:

Condominiums; Condominium Education Trust Fund; Mediation

Description:

Adds support for mediation of condominium related disputes as one of the educational purposes supported by the condominium education trust fund. Beginning with the July 1, 2015, biennium registration, imposes an additional annual condominium education trust fund fee dedicated to supporting mediation of condominium related disputes. Specifies the total fee payable into the condominium education trust fund. Requires the real estate commission to make adjustments to the condominium education trust fund to ensure adequate funds are available for mediation of condominium related disputes and any mediation requests are fully accommodated prior to the commencement of the additional annual condominium education trust fund fee. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	505
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 1
STATE OF HAWAII