STAND. COM. REP. NO.  196

 

Honolulu, Hawaii

                , 2017

 

RE:   H.B. No. 649

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 649 entitled:

 

"A BILL FOR AN ACT RELATING TO ASSOCIATION LEGAL FEES,"

 

begs leave to report as follows:

 

The purpose of this measure is to enable a planned community and condominium unit owner to withhold payment of legal fees included in an association-imposed assessment, pending resolution of arbitration or court proceedings in which the unit owner has disputed the validity of the assessment amount.

 

     The Hawaii Council of Associations of Apartment Owners dba Hawaii Council of Community Associations, Legal Aid Society of Hawaii, and several concerned individuals testified in support of this measure.  The Hawaii Chapter Community Associations Institute Legislative Action Committee, Associa, and an individual testified in opposition to this measure.  One individual provided comments.

 

Your Committee has amended this measure by:

 

     (1)  Including mediation among the proceedings where legal fees may be withheld pending resolution of an assessment dispute;

 

     (2)  Changing its effective date to July 1, 2112, to facilitate further discussion; and

 

     (3)  Making technical, nonsubstantive amendments for 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 H.B. No. 649, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 649, H.D. 1, and be referred to your Committee on Judiciary.

 

 

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

 

 

 

 

____________________________

ANGUS L.K. McKELVEY, Chair