STAND. COM. REP. NO. 2536

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2295

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2295 entitled:

 

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to allow members of an association of apartment owners to have electronic access to an association membership list and contact information for vendees under an agreement of sale.

 

     Prior to the hearing on this measure, your Committee made available for public review a proposed S.D. 1 of this measure.  The proposed S.D. 1 deleted the contents of the measure and inserted provisions that require assessments for health care services or services relating to personal care that are offered or provided to unit owners at a condominium licensed as an assisted living facility to be assessed only against the units occupied by persons who utilize these services, and not be included as part of the common expenses of a condominium.

 

     Your Committee received testimony in support of the proposed S.D. 1 from three individuals.  Your Committee received comments on the proposed S.D. 1 from the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs.

 

     Your Committee finds that as the State's population ages, many senior citizens will explore their options for aging in place.  Existing condominiums may consider providing assisted living services, including health care services or personal care services, to their unit owners or residents so that these individuals may age in place.  A condominium licensed as an assisted living facility may offer services or invite vendors to provide services for its aging residents.  However, condominium owners have expressed concern because the costs for health care services or services related to personal care are included in a condominium's maintenance fees.  These fees are then allocated to all owners, not just the owners who have contracted for these services.

 

     Your Committee concludes that it is not appropriate to require all unit owners in a condominium to pay a share of expenses related to the operation of an assisted living facility in a condominium project, and that these expenses should be assessed against a unit owner only when a unit owner or resident of a unit owner elects to utilize such services.

 

     Your Committee has amended this measure by adopting the proposed S.D. 1 and further amending the measure by:

 

     (1)  Clarifying that any and all assessments for health care services or services relating to personal care that are offered or provided to unit owners or residents of unit owners at a condominium licensed as an assisted living facility are to be assessed against the units occupied by persons who utilize these services;

 

     (2)  Amending the purpose section of this measure for clarity; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2295, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2295, S.D. 1, and be placed on the calendar for Third Reading.

 


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

 

 

 

____________________________

ROSALYN H. BAKER, Chair