CONFERENCE COMMITTEE REP. NO. 38

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 505

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 505, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to support and encourage the use of mediation to settle condominium related disputes by:

     (1)  Adding support for mediation of condominium related disputes as an educational purpose eligible to be funded by the Condominium Education Trust Fund;

     (2)  Beginning with the July 1, 2015, biennium registration, establishing an additional annual Condominium Education Trust Fund fee dedicated to supporting mediation of condominium related disputes; and

     (3)  Requiring the Real Estate Commission to make adjustments to the Condominium Education Trust Fund prior to July 1, 2015, to ensure that adequate funds are available for mediation of condominium related disputes.

     Your Committee on Conference finds that mediation can be a consumer friendly way of resolving condominium related disputes.  This measure dedicates a portion of the fees paid into the Condominium Education Trust Fund to support mediation of condominium related disputes, which will directly benefit the entire condominium community.  This measure also ensures that condominium owners have access to the services of professionally trained mediators with extensive subject matter expertise, including retired judges and individuals with appropriate professional mediation training.

     Your Committee on Conference has amended this measure by inserting an effective date of July 1, 2013.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 505, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 505, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ ANGUS L.K. MCKELVEY, Co-Chair	____________________________ ROSALYN H. BAKER, Chair
____________________________ SCOTT Y. NISHIMOTO, Co-Chair	____________________________ WILL ESPERO, Co-Chair