STAND. COM. REP. NO. 3240
RE: S.B. No. 2425
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Judiciary, to which was referred S.B. No. 2425, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"
begs leave to report as follows:
The purpose and intent of this measure is to repeal the sunset provision of Act 196, Session Laws of Hawaii 2018 (Act 196), to make permanent various pathways for condominium alternative dispute resolution.
Your Committee received testimony in support of this measure from the Hawaii Real Estate Commission, Community Associations Institute, Palehua Townhouse Association, Associa, and seven individuals. Your Committee received testimony in opposition to this measure from one individual.
Your Committee finds that Act 196 created important and effective rules relating to alternative dispute resolution to address condominium related disputes to be in effect until June 30, 2023. Expanding mediation opportunities for condominium owners will encourage the resolution of disagreements without the costs of filing a lawsuit against the association. This measure makes Act 196 permanent by repealing its sunset date.
Your Committee notes that this measure also repeals the sunset provision for section 514B-162.5, Hawaii Revised Statutes, relating to voluntary binding arbitration, but does not extend section 5 of Act 196, which provides a funding source that supports mediation and voluntary arbitration through June 30, 2023.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2425, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
KARL RHOADS, Chair