There is a hearing on Friday, April 20, 2007 at 9:00 a.m. in room 229 on a resolution of interest to community associations before the House Consumer Protection Committee before Chair, Rep. Robert N. Herkes. The hearing notice discusses the following resolution of interest to community associations:

SCR 160, SD1 Under Hawaii law, before the state can implement a new scheme regulating a profession, it must first have the Auditor conduct a sunrise review. A sunrise review is a study evaluating the need for the regulation of the profession or industry. This resolution would require the auditor to conduct a study to determine whether it is appropriate for the State to establish a new Commission to:

  1. Oversee the implementation and regulation of chapter 514B, Hawaii Revised Statutes, relating to condominiums; and
  2. Develop, implement, and enforce policies relating to condominiums in the State; now, therefore,

A few years ago, a sunrise review was done for the certification of condominium managers. I have some concerns about the resolution. First, the proposed Commission would have broader powers than the Hawaii Real Estate Commission. The Hawaii Real Estate Commission only has powers with respect to certain sections of Hawaii Revised Statutes Section 514B. In contrast, the proposed Condominium Commission would oversee the implementation and regulation of all of Chapter 514B. This may lead to even greater micromanagement of condominium associations in Hawaii.

Second, there does not appear to be a limit of the powers of the proposed Condominium Commission to enforce policies relating to condominiums. This, too, could increase the extent of micromanagement of condominium associations in Hawaii.

Third, there is some concern that a Condominium Commission might be a magnet for individuals with an agenda rather than people with concerns about a how a regulatory system affects thousands of condominiums of different sizes and needs throughout the State. Explaining this to legislators who must answer to voters is a lot easier than explaining it to appointed commissioners.

Persons wishing to offer comments are requested to submit 35 copies of their testimony at least 24 hours prior to the hearing to: Room 315 in the State Capitol; OR The HOUSE testimony drop off box in the turnaround area of the Capitol Basement parking lot. Persons wishing to fax comments less than 5 pages in length are requested to transmit their testimony to 586-6501 (Oahu) or 1-800-535-3859 (Neighbor Islands). On the transmittal, please indicate:

  The Committee the comments are directed to;

  The date and time of the hearing; and

  The number of copies the Committee is requesting.