STAND. COM. REP. NO. 153-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2222
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2222 entitled: 

     "A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds for a
comprehensive review of the Condominium Property Regimes law, to
be conducted by the Real Estate Commission (Commission) for the
purpose of developing legislation to reorganize, clarify, and
deregulate the condominium property regimes law.

     The Department of Commerce and Consumer Affairs testified in
strong support of the measure.  Your Committee also received
testimony in support of the bill from the Hawaii Association of
Realtors, Community Associations Institute, and a private
individual.

     Your Committee finds that the condominium law, first enacted
in 1961, was intended to establish a form of real property
ownership allowing self-governance by apartment owners with
minimal government intervention.  However, over its 39-year life,
the law has been subject to numerous, piece-meal amendments, and
has expanded from seven to over 135 sections.  As a result, the
law is not "user friendly."  It is currently disorganized and
unclear, as evidenced by the numerous ongoing requests for
assistance, and the concerns expressed to the Commission by
apartment owners, boards of directors, managing agents,
developers, real estate licensees, government officials, and
attorneys.

 
                                 STAND. COM. REP. NO. 153-00
                                 Page 2

 

     Your Committee finds that recodification of the condominium
law would not only benefit condominium owners and facilitate
condominium self-governance, but would also result in increased
governmental and industry efficiency in an important sector of
our real estate marketplace.

     Your Committee has amended this measure consistent with the
Commission's recommendations that are based on departmental
experience in recodifying the insurance and financial institution
laws.  The amendments authorize the Commission to establish a
temporary full-time condominium specialist position to provide
the commitment and responsiveness needed to conduct the review
contemplated by this measure.

     Your Committee has also made technical, nonsubstantive
amendments for purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2222, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2222, H.D. 1, and be referred to the Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair