STAND. COM. REP. NO. 2699

Honolulu, Hawaii

RE: S.B. No. 2425

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 Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2425 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal the sunset date of Act 196, Session Laws of Hawaii, 2018, so the statutory amendments remain permanent.

Your Committee received testimony in support of this measure from the Real Estate Commission, Hawaii Council of Associations of Apartment Owners, Community Associations Institute, and eight individuals.

Your Committee finds that Act 196, Session Laws of Hawaii, 2018 (Act 196), made amendments to the Hawaii Revised Statutes that made mediation and voluntary binding arbitration of condominium disputes more effective and more widely used. Alternative dispute resolution is a valuable self-governance tool for maintaining productive and well-functioning condominium associations. This measure would make permanent the provisions of Act 196 to permit parties to continue to participate in alternative dispute resolution.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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. 2425, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2425, S.D. 1, and be referred to your Committee on Judiciary.

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

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ROSALYN H. BAKER, Chair