STAND. COM. REP. NO. 1043

Honolulu, Hawaii

, 2023

RE: H.B. No. 1509

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1509, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COMMON-INTEREST DEVELOPMENTS,"

begs leave to report as follows:

The purpose of this measure is to establish the Common-Interest Development Oversight Task Force to examine the feasibility of bringing the various common-interest developments under the oversight of the Department of Commerce and Consumer Affairs.

Your Committee received testimony in support of this measure from the Hawaii Council of Associations of Apartment Owners and Palehua Townhouse Association. Your Committee received testimony in opposition to this measure from the Legislative Action Committee of the Community Associations Institute, Hawaii Chapter; Honolulu Tower AOAO; and three individuals. Your Committee received comments on this measure from one individual.

Your Committee finds that common-interest developments exist in the State in a variety of forms, such as condominium property regimes, planned communities, and cooperative housing corporations. Your Committee further finds that while unit owners in condominium property regimes may get assistance from the Department of Commerce and Consumer Affairs for certain disputes, owners in the other forms of common-interest developments are not able to get assistance from the Department. This measure convenes a task force to examine consolidating the oversight of these common-interest developments under the Department of Commerce and Consumer Affairs.

Your Committee has amended this measure by:

(1) Requiring the Common-Interest Development Oversight Task Force to submit to the Legislature an interim report before the Regular Session of 2024 and a final report before the Regular Session of 2025;

(2) Changing the Task Force's cease date to June 30, 2025; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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. 1509, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1509, H.D. 2.

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

____________________________

MARK M. NAKASHIMA, Chair