CONFERENCE COMMITTEE REP. NO. 68-14

Honolulu, Hawaii

                 , 2014

RE:    S.B. No. 2483

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

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. 2483, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM ASSOCIATIONS,"

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:

     (1)  Clarify that a condominium board may assess unpaid common expenses against any purchaser who purchases a delinquent unit in a foreclosure; and

     (2)  Specify that a condominium board may only fill board vacancies temporarily until the next annual or duly noticed election.

     Your Committee on Conference finds that when section 514B-146, Hawaii Revised Statutes, was amended in 2013 to specify that an association's six-month special assessment would be paid upon closing of a foreclosure sale, the term "other purchaser" was inadvertently left out of the amended statute.  This measure corrects that error.  Your Committee on Conference further finds that this measure will help reduce disputes regarding vacancies on condominium boards by clarifying the procedure for filling these vacancies.

     Your Committee on Conference has amended this measure by:

     (1)  Making an additional amendment to section 514B-146, Hawaii Revised Statutes, to specify that a condominium association's lien for unpaid assessments is subordinate to real property taxes, rather than all taxes, and updating the purpose section of part I of this measure accordingly; and

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

     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. 2483, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2483, S.D. 1, 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
____________________________ KARL RHOADS, Co-Chair	____________________________ WILL ESPERO, Co-Chair
____________________________ JO JORDAN, Co-Chair