On May 1, 2007, the legislature passed 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. For example, a few years ago, a sunrise review was done for the certification of condominium managers. 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.
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.