STAND. COM. REP. NO. 815

Honolulu, Hawaii

RE:    S.B. No. 391

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 391 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify the condominium laws relating to unpaid or contested fines, fees, and assessments; grievance procedures; defaults; and nonjudicial foreclosures.

     Your Committee received written comments in support of this measure from Associa and two individuals.  Your Committee received written comments on this measure from Hui ‘Oia‘i‘o.

     Your Committee finds that this measure will bring much-needed clarity and fairness to the condominium laws for both owners and the associations.

     Your Committee has amended this measure by:

(1)  Conforming provisions relating to defaults;

(2)  Clarifying that unpaid association fines imposed while the payment plan is in effect do not constitute a default under the payment plan;

(3)  Streamlining and conforming the provisions relating to the written statement of an apartment or unit owner's rights, the owner's duty to pay common expense assessments, and the grievance procedure for an owner who contests all fees except common expenses; and

(4)  Replacing the term "legal fees" with "attorneys' fees and costs".

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 391, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 391, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair