STAND. COM. REP. NO. 1289-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2726

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2726, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to require the Legislative Reference Bureau to conduct a study on condominium subjects, which will help the Condominium Property Regime Task Force fulfill its obligation under Act 189, Session Laws of Hawaii 2023.

Your Committee received testimony in support of this measure from the Palehua Townhouse Association; Hawaii First Realty LLC; Angel's Site Management Solutions; Community Associations Institute, Legislative Action Committee, Hawaii Chapter; Honolulu Tower AOAO; Chamber of Sustainable Commerce; AARP Hawaiʻi; and numerous individuals. Your Committee received comments on this measure from the Legislative Reference Bureau; State Procurement Office; and Kokua Council.

Your Committee finds that Act 189, Session Laws of Hawaii 2023, established the Condominium Property Regime Task Force, which was tasked with:

(1) Examining and evaluating issues regarding condominium property regimes governed by the Condominium Property Act;

(2) Conducting an assessment of the alternative dispute resolution systems established by the Legislature;

(3) Investigating whether additional duties and fiduciary responsibilities should be placed on members of the boards of directors of condominium property regimes; and

(4) Developing any legislation necessary.

Your Committee further finds that the Condominium Property Regime Task Force requires further research so that it may better complete its objectives. Information provided by the Legislative Reference Bureau, as proposed by this measure, will enable the Task Force to develop potential legislation on an informed and objective basis.

Your Committee has amended this measure by:

(1) Extending the deadline for the final report and the cease date for the Condominium Property Regime Task Force to June 30, 2026;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2726, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2726, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

MARK M. NAKASHIMA, Chair