CONFERENCE COMMITTEE REP. NO. 178

Honolulu, Hawaii

, 2005

RE: S.B. No. 1137

S.D. 1

H.D. 1

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1137, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to enable a condominium association to invest association funds in certificates of deposit (CDs) through a Hawaii-based securities broker and to purchase investment products from outside of the State.

Act 164, Session Laws of Hawaii 2004 (Act 164), recodified certain sections of the condominium property regimes law, including section 514A-97, Hawaii Revised Statutes, relating to the handling and disbursement of condominium association funds. However, in recodifying the law, Act 164 prohibited condominium associations from purchasing certificates of deposit through a securities broker and authorized the purchase only of investment products offered by in-state institutions, restrictions not present in the current law.

This measure allows condominium associations greater options in investing owners' funds by repealing the prohibition against the purchase of CDs through a securities broker and the requirement that investments be made only in financial products from institutions located in the State. It is the intent of your Committee on Conference that condominium associations not be limited in the investment of owners funds to the purchase of products offered only in the State or by in-state institutions.

Your Committee on Conference has amended this measure by inserting the contents of the Senate Draft 1, which substantially reflects the existing statutory language contained in section 514A-97, Hawaii Revised Statutes, and which contains an effective date of July 1, 2005.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1137, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1137, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

KENNETH HIRAKI, Co-Chair

____________________________

RON MENOR, Chair

____________________________

DWIGHT TAKAMINE, Co-Chair