STAND. COM. REP. NO. 3290

Honolulu, Hawaii

RE: H.B. No. 1814

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1814, H.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:

(1) Require and appropriate funds for the Legislative Reference Bureau to conduct a study on how certain other states approach certain subjects as they relate to condominiums; and

(2) Extend the final report deadline and dissolution date of the Condominium Property Regime Task Force established pursuant to Act 189, Session Laws of Hawaii 2023, to June 30, 2026.

Your Committee received testimony in support of this measure from the Community Associations Institute, AARP Hawaiʻi, Hawaii First Realty LLC, Palehua Townhouse, Honolulu Tower AOAO, and eight individuals.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee received comments on this measure from the Legislative Reference Bureau, Kokua Council, and one individual.

Your Committee finds that Act 189, Session Laws of Hawaii 2023, established a Condominium Property Regime Task Force to examine and evaluate certain issues regarding condominium property regimes and to conduct an assessment of the existing alternative dispute resolution systems that were established by the Legislature. On December 15, 2023, the Condominium Property Regime Task Force submitted its interim report to the Legislature, which requested the Legislature to task the Legislative Reference Bureau with studying and reporting on several specific subjects relating to condominium property regimes that would enable the Task Force to thereafter recommend legislation suitable to Hawaii's needs on an informed and objective basis. Therefore, this measure requires the Legislative Reference Bureau to complete the requested study and provides additional time for the Task Force to complete its work based on the Legislative Reference Bureau's future findings and recommendations.

Your Committee has amended this measure by:

(1) Inserting language to require the Legislative Reference Bureau to also include in its study and report an analysis of approaches employed by certain other states regarding limitations on the total and final legal fees in excess of the original debt amount sought that an association can access, demand, or seek reimbursement for from a unit owner; and

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

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 H.B. No. 1814, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1814, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

JARRETT KEOHOKALOLE, Chair