STAND. COM. REP. NO. 2766

Honolulu, Hawaii

RE: S.B. No. 2060

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2060, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to encourage parties involved in condominium related disputes to use alternative dispute resolution instead of resolving those disputes in court.

Specifically, this measure:

(1) Authorizes the use of moneys from the condominium education trust fund for voluntary binding arbitration of condominium related disputes after the parties have attempted evaluative mediation; and

(2) Amends the mediation requirements for condominium related disputes to require parties to certain condominium related disputes to participate in mediation, upon the request of one party.

Your Committee received written comments in support of this measure from one individual.

Your Committee received written comments in opposition to this measure from one individual.

The Hawaii Real Estate Commission submitted written comments on this measure.

Your Committee finds that requiring parties to participate in mediation, and the recent concept of evaluative mediation, will help to resolve condominium related disputes faster and at lower costs to all parties.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

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. 2060, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2060, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair