STAND. COM. REP. NO. 138

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 39

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 39 entitled:

 

"A BILL FOR AN ACT RELATING TO PLANNED COMMUNITY ASSOCIATIONS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to ensure that all members of a planned community association are able to receive notice of meetings of the association or its board of directors.

 

     Your Committee received testimony in support of this measure from two private individuals.  Your Committee received testimony in opposition to this measure from the Land Use Research Foundation of Hawaii, Hawaii First, Hawaii Chapter – Community Associations Institute, Haiku Plantations Association, Mililani Town Association, the Villages of Kapolei Association, Ewa by Gentry Community Association, HKP AOAO, Certified Management, Palehua Community Association, Ke Noho Kai Community Association, Wailuna AOAO, Pearl Regency Home Owners Association, and twenty-three private individuals.  Your Committee received comments on this measure from Wailea Community Association.

 

     Your Committee finds that this measure increases transparency and encourages homeowner participation in the governance of planned community associations.  Your Committee notes the concerns of some homeowners and associations that this measure will increase the cost of providing notice due to postage costs.  However, your Committee also notes that the allowable options for giving notice to homeowners include email notification and website posting:  two methods that are virtually free of charge and convenient for homeowners.  Your Committee further finds that the inclusion of electronic notification options in this measure make compliance with its requirements an insignificant burden for planned community associations.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that notice of meetings may be provided through posting on a portion of the association's website that is accessible to all of its members; and

 

     (2)  Making a technical, nonsubstantive change 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. 39, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 39, S.D. 1, and be referred to the Committee on Judiciary and Labor.

 

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

 

		____________________________ ROSALYN H. BAKER, Chair