STAND. COM. REP. NO.547-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 1701

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1701 entitled:


begs leave to report as follows:

The purpose of this bill is to provide the Board of Directors (Board) of an association of apartment owners (AOAO) with authority to approve the installation of television signal distribution and telecommunications equipment on common elements of a condominium project.

Testimony in support of this measure was received from Voicestream Wireless and the Community Associations Institute- Hawaii Chapter.

Your Committee finds that most condominiums were built at a time when telecommunications technology such as cable television, personal computers, and the Internet, were considered cutting-edge. As a result, the bylaws and project documents of all but the most recent condominium property regimes have provisions that make it difficult for AOAOs to upgrade their telecommunications infrastructure.

Under current law, it is difficult for a Board to secure the requisite number of votes to install television signal distribution or telecommunications equipment because seventy-five percent of unit owners must vote to approve the installation.

Furthermore, your Committee finds that enabling the Board to bypass the usual seventy-five percent approval requirement, solely for telecommunications projects, may help to preserve and enhance the value of the apartment units. Allowing the Board to lease common areas of the building to telecommunications providers may also help the association generate revenue that may lead to lower maintenance fees.

However, your Committee has concerns with this bill as drafted and has therefore amended this measure by:

(1) Deleting the directive in the definition of "television signal distribution and telecommunications equipment" that the term be broadly construed to encompass all present and future forms of technology;

(2) Adding a new subsection that explicitly states that any action taken by the Board shall remain subject to all legal requirements and obligations;

(3) Changing the effective date to July 1, 2050, to facilitate further discussion; and

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

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. 1701, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1701, 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,