STAND. COM. REP. NO. 239-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2243

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2243 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to ensure the proper maintenance of residential condominium buildings and structures by:

(1) Requiring that buildings and structures be maintained in a safe and sanitary condition;

(2) Requiring devices and safeguards to be maintained in conformance with county building codes;

(3) Requiring condominium associations or their designated agents to be responsible for the maintenance of the buildings and structures; and

(4) Authorizing county building officials to require a building or structure to be reinspected.

Your Committee received testimony in support of this measure from the Hawaii Council of Associations of Apartment Owners and six individuals. Your Committee received testimony in opposition to this measure from ten individuals. Your Committee received comments on this measure from the Hawaii Insurers Council.

Your Committee finds that many condominiums were built in the 1970s and 1980s and now require major repairs to keep the buildings and structures operational. However, condominium associations may not keep up with necessary repairs and maintenance or invest in appropriate insurance coverages to ensure that buildings or structures are able to be repaired or maintained when needed. This measure requires condominium associations or their designated agents to ensure proper maintenance and safety of their buildings or structures.

Your Committee has amended this measure by changing the effective date to January 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2243, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2243, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

AARON LING JOHANSON, Chair