STAND. COM. REP. NO. 3755

Honolulu, Hawaii

RE: H.B. No. 1897

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1897, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM ALTERNATIVE DISPUTE RESOLUTION,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the conditions and procedures of alternative dispute resolution methods for condominium-related disputes, including the use of facilitative mediation, evaluative mediation, or binding arbitration.

Your Committee received testimony in support of this measure from Associa Hawaii and Community Associations Institute.

Your Committee received testimony in opposition to this measure from Honolulu Tower and nineteen individuals.

Your Committee received comments on this measure from the Law Offices of Mark K. McKellar, LLLC and six individuals.

Your Committee finds that existing law allows for the potential for abusive or inconsistent imposition of fines under chapter 514B, Hawaii Revised Statutes. This measure addresses this issue by enhancing due process procedures in condominium-related disputes, requiring fines assessed by condominium associations to be reasonable, and ensuring easier access to an alternative dispute resolution process.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1897, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair