STAND. COM. REP. NO. 2629

Honolulu, Hawaii

RE: S.B. No. 2433

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 Commerce and Consumer Protection, to which was referred S.B. No. 2433 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 Real Estate Commission to adopt rules to recognize and define condominium unit owners as stakeholders; and

(2) Require the Real Estate Commission to involve condominium unit owners in consultations and activities funded by the Condominium Education Trust Fund.

Your Committee received testimony in support of this measure from the Hawaiʻi Real Estate Commission, Honolulu Tower, and nine individuals.

Your Committee received testimony in opposition to this measure from the Legislative Action Committee of the Community Associations Institute; Associa; Law Offices of Philip S. Nerney, LLLC; and two individuals.

Your Committee finds that the Condominium Education Trust Fund was established to support education and research for the benefit of condominium owners. This measure would advance this purpose by ensuring unit owners are able to participate in consultations and activities funded by the Condominium Education Trust Fund.

Your Committee notes the concerns raised in testimony concerning the ambiguity of the term "stakeholder". Amendments to this measure are therefore necessary to address this concern.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have identified condominium unit owners as "stakeholders" throughout the measure;

(2) Clarifying that the Real Estate Commission shall adopt rules to ensure the rights of condominium unit owners are recognized and safeguarded;

(3) Inserting language that requires the Real Estate Commission to ensure the interests of condominium unit owners are represented in certain activities and educational programs funded by Condominium Education Trust Fund;

(4) Amending section 1 to remove certain findings and reflect its amended purpose;

(5) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(6) 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. 2433, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2433, 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