STAND. COM. REP. NO. 642-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2524

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Judiciary & Hawaiian Affairs and Consumer Protection & Commerce, to which was referred H.B. No. 2524 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Require the Real Estate Commission (Commission) to receive and investigate complaints by condominium unit owners against associations that are subject to condominium laws; and

(2) Require the Ombudsman to issue findings within a certain amount of time after a complaint is filed against the Commission regarding the Commission's duties.

Your Committees received testimony in support of this measure from Kokua Council; Chamber of Sustainable Commerce; District 25 Council of the Democratic Party of Hawaii; and numerous individuals. Your Committees received testimony in opposition to this measure from the Hawaiʻi Real Estate Commission; Honolulu Tower AOAO; AOAO Lakeview Sands; Law Offices of Mark K. McKellar, LLLC; and numerous individuals. Your Committees received comments on this measure from the Office of the Ombudsman; Hawaii Legislative Action Committee Community Associations Institute; Hawaii First Realty LLC; and one individual.

Your Committees find that this measure will ensure that complaints by condominium unit owners against associations are properly investigated by the Real Estate Commission and timely resolved.

Your Committees have amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Judiciary & Hawaiian Affairs and Consumer Protection & Commerce that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2524, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2524, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________ MARK M. NAKASHIMA, Chair

____________________________ DAVID A. TARNAS, Chair