STAND. COM. REP. NO. 762

Honolulu, Hawaii

RE: S.B. No. 725

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 725 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to specify that a condominium association's proxies and ballots may be destroyed ninety days, rather than thirty days, after an association meeting.

Your Committee received testimony in support of this measure from Associa, Hawaii Council of Associations of Apartment Owners, Palehua Townhouse Association, and four individuals.

Your Committee finds that many condominium associations' election documents are maintained by property management companies, which may digitize and archive those documents. This measure extends the period of time before physical election documents are destroyed to ensure ample time for an interested party to review election results without imposing an undue burden or hardship on the property management company or the association.

Your Committee has amended this measure by clarifying that in the event of a contested election, the documents shall be retained until resolution of the contested election.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 725, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 725, S.D. 1, and be placed on the calendar for Third Reading.

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

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ROSALYN H. BAKER, Chair