STAND. COM. REP. NO.  771-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2401

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 2401, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

beg leave to report as follows:

The purpose of this measure is to encourage more transparency in the actions of condominium association boards of directors by increasing the enforcement powers of the Real Estate Commission and allowing the Real Estate Commission to recover attorneys' fees.

Numerous individuals testified in support of this measure.  The Real Estate Commission and Community Associations Institute testified in opposition to this measure.

     Your Committees have amended this measure by:

     (1)  Ensuring board meetings, other than executive sessions, are open to all association members regardless of whether a majority of a quorum of the board votes otherwise;

     (2)  Changing the effective date to July, 1, 2112, to encourage further discussion; and

     (3)  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 Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2401, H.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 2401, H.D. 2.

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

____________________________ KARL RHOADS, Chair

____________________________ ANGUS L.K. McKELVEY, Chair