CONFERENCE COMMITTEE REP. NO. 153

Honolulu, Hawaii

, 2023

RE: S.B. No. 855

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 855, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM RESERVE REQUIREMENTS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Authorize a condominium association to provide a summary of the required information in its budget;

(2) Authorize a condominium association's reserve study to forecast a loan or special assessment to fund life safety equipment or installations for any building located in a county with a population greater than five hundred thousand;

(3) Authorize a condominium association to use a third party to conduct a reserves study on behalf of the condominium; and

(4) Clarify the information to be included in the description of how the estimated replacement reserves assessments are computed.

Your Committee on Conference finds that certain condominiums are required to make fire safety upgrades. These upgrades can cost a condominium association millions of dollars, resulting in the condominium association drastically increasing its maintenance fees. This measure requires a condominium association to update its annual operating budget and reserve study to ensure that it provides complete and accurate information on required expenditures to allow association members to plan accordingly.

Your Committee on Conference has amended this measure by:

(1) Changing the effective date to upon its approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 855, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 855, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ MARK M. NAKASHIMA Co-Chair	____________________________ JARRETT KEOHOKALOLE Chair
____________________________ LISA KITAGAWA Co-Chair