STAND. COM. REP. NO. 2386

Honolulu, Hawaii

RE: S.B. No. 2726

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 S.B. No. 2726 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 the Legislative Reference Bureau to conduct a study on condominium property regimes and the approaches used in certain other jurisdictions with respect to ombudsman programs, licensing for management, alternative dispute resolution, governmental regulation, owner education, and owner access to condominium documents; and

(2) Make an appropriation for the study.

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

Your Committee received comments on this measure from the State Procurement Office, Legislative Reference Bureau, and two individuals.

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 and appropriates funds for the Legislative Reference Bureau to complete the requested study of condominium subjects in other states.

Your Committee has amended this measure by 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 S.B. No. 2726, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2726, 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,

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JARRETT KEOHOKALOLE, Chair