STAND. COM. REP. NO.  552

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 1308

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1308, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to address concerns over general regulatory oversight of homeowners associations by requiring the Auditor to conduct a study, including a cost analysis, on the necessity and feasibility of establishing an agency within the Department of Commerce and Consumer Affairs (DCCA) to provide this oversight.

Several concerned individuals testified in support of this measure.  Associa and one concerned individual provided comments.

     Your Committee notes that funds were not provided for the Auditor to conduct the proposed study.  While your Committee finds that this study is necessary, it has concerns that Condominium Education Trust Fund money may be used to conduct the study.  As the money paid into the Fund was collected from condominium unit owners, your Committee finds that use of these funds to conduct this study may be inappropriate and that a general fund appropriation for conducting the study should be made instead.

     Your Committee has amended this measure by:

     (1)  Inserting a general fund appropriation in an unspecified amount for the Auditor to conduct the study; and

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

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1308, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1308, H.D. 2.

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

____________________________

ANGUS L.K. McKELVEY, Chair