STAND. COM. REP. NO.  451

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 1406

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1406 entitled:

"A BILL FOR AN ACT RELATING TO SOLAR ENERGY,"

begs leave to report as follows:

The purpose of this measure is to require homeowners, community, and condominium associations and cooperatives, among others, to submit a copy of their duly adopted rules providing for the placement of solar energy devices by the deadline for filing their next condominium association biennial registration; provided, however, that failure to do so shall result in loss of their tax exempt status.

The Department of Business, Economic Development, and Tourism; Hawaii Solar Energy Association; and Interisland Solar Supply supported this measure.  The Community Associations Institute Legislative Action Committee and an individual testified in opposition of this measure.  The Blue Planet Foundation provided comments on this measure.

     Your Committee notes that the loss of tax exempt status may be too severe a penalty for many associations and cooperatives.  Should the Committee on Commerce and Consumer Protection consider this measure, your Committee respectfully requests that the above be considered.

     Your Committee has amended this measure by:

     (1)  Clarifying that every association, cooperative, or other entity that is prohibited statutorily from preventing the installation of solar energy devices on townhouses and other dwellings is subject to the rule adoption requirements pertaining to such installations;

     (2)  Including devices using solar energy for drying or clothes-drying in the definition of "solar energy device"; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1406, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1406, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

CHRIS LEE, Chair