STAND. COM. REP. NO. 961

Honolulu, Hawaii

RE: S.B. No. 146

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 146, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the conditions and procedures of alternative dispute resolution methods for condominium-related disputes.

Your Committee received testimony in support of this measure from the Community Associations Institute, Hawaii First Realty, and six individuals.

Your Committee received testimony in opposition to this measure from Nakamoto Realty, LLC; and eighteen individuals.

Your Committee received comments on this measure from the Hawaiʻi Real Estate Commission.

Your Committee finds that the alternative dispute resolution methods for condominium-related disputes provided for in existing law regularly cause the involved parties to engage in a lengthy litigation process and incur attorneys' fees and costs. Your Committee further finds that early neutral evaluation is an effective process that allows parties to resolve a dispute without the stress of litigation. This measure protects consumers by ameliorating alternative dispute resolution processes for condominium-related disputes.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 146, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair