STAND. COM. REP. NO. 1486-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2433

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2433, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize the use of monies in the Condominium Education Trust Fund to be used for education resources for condominium unit owners in condominium governance;

(2) Require the Real Estate Commission to ensure that the interests of condominium unit owners are represented in programs, advisory groups, task forces, activities, and other undertakings funded by the Trust Fund; and

(3) Require the Real Estate Commission to adopt rules to protect the rights of condominium unit owners for purposes of condominium governance.

Your Committee received testimony in support of this measure from the Real Estate Commission; Hawaii Council of Community Associations; Honolulu Tower; AARP Hawaiʻi; and numerous individuals. Your Committee received testimony in opposition to this measure from Associa and one individual. Your Committee received comments on this measure from the Community Associations Institute Legislative Action Committee and one individual.

Your Committee finds that condominium unit owners directly bear the financial consequences of governance decisions, including assessments, maintenance fees, and reserve funding. However, unit owners are not consistently included in educational efforts or policy discussions that affect condominium governance, despite their direct financial stake. Your Committee further finds that the Condominium Education Trust Fund was established to support education and research for the benefit of condominium unit owners. This measure therefore ensures that unit owners, as beneficiaries of the Condominium Education Trust Fund, remain actively involved in improving and developing educational resources that support effective condominium governance.

Your Committee has amended this measure by:

(1) Allowing the Condominium Education Trust Fund fees that are assessed on condominium associations and dedicated to supporting mediation and voluntary arbitration to be used for education resources if those fees are unexpended after two years;

(2) Deleting the requirement for the Real Estate Commission to adopt rules protecting the rights of condominium unit owners for purposes of condominium governance;

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

(4) 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. 2433, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2433, S.D. 1, 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,

____________________________

SCOT Z. MATAYOSHI, Chair