STAND. COM. REP. NO. 1179-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2425

S.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2425, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

beg leave to report as follows:

The purpose of this measure is to make permanent statutory amendments pertaining to alternative dispute resolutions for disputes between condominium associations and unit owners enacted by Act 196, Session Laws of Hawaii 2018 (Act 196).

Your Committees received testimony in support of this measure from Hawaii Real Estate Commission, Community Associations Institute, Palehua Townhouse Association, Associa, Hawaii Council of Associations of Apartment Owners, and seven individuals.

Your Committees find that Act 196, which created important and effective rules regarding alternative dispute resolution for condominium-related disputes, is scheduled to be repealed on June 30, 2023. Your Committees further find that since the passage of Act 196, condominium associations have had additional remedies available to address dispute resolution between and among condominium owners, board members, and their managing agents and have been able to access the Condominium Education Trust Fund to subsidize those remedies. This measure makes these remedies permanent by repealing the sunset date of Act 196.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2425, S.D. 1, and recommend that it pass Second Reading and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ CHRIS LEE, Chair

____________________________ ROY M. TAKUMI, Chair