STAND. COM. REP. NO. 612

Honolulu, Hawaii

RE: S.B. No. 921

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 921 entitled:

"A BILL FOR AN ACT RELATING TO LIMITATIONS OF ACTIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify that no statute of repose shall affect a condominium association's right of action against a condominium developer sooner than two years after the period of developer control terminates.

Your Committee received testimony in support of this measure from the Hawaii Council of Associations of Apartment Owners, Palehua Hale AOAO, Community Associations Institute, and six individuals.

Your Committee finds that under existing law, the statute of limitations affecting a condominium association's right of action against a developer is tolled until the period of developer control terminates. However, existing law does not expressly state that tolling applies to the statute of repose that also limits a condominium association's right of action against a developer. A developer should not be allowed to avoid responsibility for design or construction defects by maintaining control of an association until the statute of repose expires, for the same reasons that it would be unfair and inequitable to allow the statute of limitations to expire during a period of developer control. Accordingly, this measure clarifies that the tolling provision in section 514B-141, Hawaii Revised Statutes, applies to the statute of repose.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 921 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

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

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JARRETT KEOHOKALOLE, Chair