STAND. COM. REP. NO.172-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 1715

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1715 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUM PROPERTY REGIMES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Extend from 120 days to 365 days, the time period for obtaining the vote or written consent of apartment owners to amend the bylaws of a condominium property regime; and

(2) Clarify that the 365-day deadline applies to bylaw amendments proposed either by the board of directors or by a volunteer apartment owners' committee.

Hawaii Independent Condominium & Cooperative Owners, Hawaiiana Management Company, Ltd., and six apartment owners supported the measure. The Hawaii Council of Associations of Apartment Owners commented. Testimony supporting the intent of this bill was received from the Real Estate Commission. The Community Associations Institute opposed the portion of the bill specifically applying the 365-day deadline to board bylaw amendments.

 

Your Committee finds that the current 120-day time period is insufficient to obtain the vote or written consent of association apartment owners to amend bylaws proposed by the board of directors or a volunteer apartment owners' committee. It is especially difficult when an association is composed of many absentee owners who reside out-of-state. Your Committee also notes that several persons and organizations testified that 180 days would be sufficient.

Your Committee has amended this bill by:

(1) Providing a 180-day rather than 365-day time period for obtaining the required number of votes or signatures for the adoption of bylaw amendments; and

(2) Making technical, nonsubstantive amendments for clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1715, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1715, H.D. 1, and be placed on the calendar for Third Reading.

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

 

____________________________

KENNETH T. HIRAKI, Chair