STAND. COM. REP. NO. 3136

Honolulu, Hawaii

RE: S.B. No. 2421

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2421, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to repeal the sunset provision of Act 195, Session Laws of Hawaii 2018 (Act 195), permanently codifying the amendments relating to the limitations on powers of condominium associations, condominium association fiscal matters, and cure of default of foreclosures.

Your Committee received testimony in support of this measure from the Hawaii Chapter of the Community Associations Institute Legislative Action Committee, Palehua Townhouse Association, Associa, Kokua Council, Hui ‘Oia‘i‘o, and nine individuals.

Your Committee finds that Act 195 created important and effective rules relating to association foreclosures on condominiums to be in effect until June 30, 2020. These rules help to protect condominium owners from having to pay fees and other non-common element charges prior to an opportunity to dispute a false violation or wrongly imposed late fee penalty. This measure makes Act 195 permanent by repealing its sunset date.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2421, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair