STAND. COM. REP. NO. 977

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1021
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1021, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to clarify that projects created
as condominium property regimes (CPRs) are subject to county
zoning and other county building and development ordinances and
rules.  This bill expressly gives counties authority over the
physical development of condominium projects, and clarifies that
the bill applies to condominium projects and amendments.

     The Real Estate Commission generally supported the bill
subject to incorporation of amendments proposed separately by the
Office of Planning (OP) of the Department of Business, Economic
Development, and Tourism. 

     Testimony from OP supported the intent of the bill and
proposed amendments that reflect the consensus of the following
agencies and groups: the County of Kauai Planning Department, the
County of Hawaii Planning Department, the Department of Planning
and Permitting of the City and County of Honolulu, the Real
Estate Commission, Hawaii's Thousand Friends, the Land Use
Research Foundation, the Land Use Commission, Gentry Homes, Ltd.,
and a private attorney experienced with CPRs.  


 
 
 
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                                 Page 2

 
     Many of these entities presented testimony supporting the
proposed amendments, including Hawaii's Thousand Friends, the
Land Use Research Foundation, Gentry Homes, Ltd., and the City
and County of Honolulu.

     Testimony generally supporting the bill also was received
from a Maui County Council member and an interested individual,
both of whom expressed concern for protecting agricultural lands.  

     Testimony opposing the bill was received from the Hawaii
Association of Realtors and the Condominium Property Regime
Committee of the Hawaii State Bar Association (HSBA CPR
Committee).  

     The HSBA CPR Committee, after having learned of OP's
proposed amendments, indicated that the amendments were a step in
the right direction.
  
     Your Committee finds it important to end uncertainty
regarding county jurisdiction over CPRs.  While your Committee
recognizes that not all concerns are fully addressed by the
amendments proposed by OP, your Committee concurs with its
recommendations and has amended the bill by:
 
     (1)  Within the new part to chapter 514A, Hawaii Revised
          Statutes (HRS), removing the express statement of
          county jurisdiction over condominium development and
          adding a reference to section 514A-45, HRS, that allows
          counties to adopt supplemental rules and regulations to
          ensure conformance with county ordinances;

     (2)  Within the new part to chapter 514A, HRS, deleting
          language expressly restricting the total number of
          condominium units to the number of dwelling units
          permitted under county zoning laws, and restating more
          generally that CPRs shall conform to existing
          underlying county zoning and permitting requirements;

     (3)  Replacing the prior amendment to section 514A-11(13),
          HRS, to provide instead that, prior to recordation, a
          declaration under penalty of law must be filed stating
          that the CPR project is in compliance with zoning and
          building ordinances and codes;

     (4)  Removing amendments to sections 514A-12 and 514A-36,
          HRS, which had required that project site plans be
          filed with the county prior to recordation;


 
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                                 Page 3

 
     (5)  Removing amendments to section 514A-40(a)(9), HRS, and
          adding language to require a declaration under penalty
          of law, rather than a signed statement or other
          administrative evidence, that the project is in
          compliance;

     (6)  Removing amendments to section 514A-40(b), HRS, which
          had added city and county officers to county officers,
          whose signed statement that the project is in
          compliance, is necessary prior to issuance of an
          effective date for a final public report; and

     (7)  Making technical, nonsubstantive amendments for
          purposes of clarity, consistency, and style.

     Your Committee is aware that two issues are still not
addressed by these amendments, upon which your Committee urges
further discussion as the bill progresses through the legislative
process:

     (1)  The use of condominium property regimes to avoid one-
          time subdivision restrictions on the subdivision of
          agricultural lands; and

     (2)  The potential for the establishment of an ownership
          interest in a condominium unit or a use that may be
          generally allowed under county code but may not
          otherwise be granted by the county for a specific
          parcel. 

     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. 1021, H.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as H.B. No. 1021, H.D. 2.

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



                                   ______________________________
                                   RON MENOR, Chair