SB 146 Hawaii Senate · 2025 Regular Session

RELATING TO CONDOMINIUMS.

Summary

Amends the conditions and procedures of alternative dispute resolution methods for condominium-related disputes, including the use of evaluative mediation or binding arbitration. Effective 7/1/2050. (HD2)

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Mar 2025

House Passage

Apr 2025

Governor

Introduced Jan 10, 2025 Last action Apr 21, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

SB146_HD2 → SB146_SD1 · 7 edits

MODERATE

This bill significantly restructures Hawaii's condominium dispute resolution system by replacing the old evaluative mediation framework with a new mandatory mediation process for most disputes, adding binding arbitration as an option, and creating a new early neutral evaluation step. The changes aim to make dispute resolution faster and less costly for condominium owners and associations.

Scope change

The bill expands the scope of mandatory dispute resolution to cover more types of condominium disputes and adds new procedures for fines and assessments.

REQUIREMENT

Changed mandatory dispute resolution from 'evaluative mediation' to a new mandatory mediation process that must be completed before any court action can be filed, except for urgent matters like property damage or personal injury.

Added binding arbitration as a new option for condominium disputes, available only after mandatory mediation is completed and with all parties agreeing in writing.

Created new rules for condominium fines, requiring clear notice of violations and appeal procedures, and prohibiting attorneys' fees until fines are deemed collectable.

FISCAL

Modified the condominium education trust fund to support the new alternative dispute resolution methods including mediation, arbitration, and early neutral evaluation.

DEFINITION

Added new definition of 'condominium-related dispute' to clarify which disputes are covered by the new dispute resolution requirements.

ENFORCEMENT

Modified lien foreclosure rules to prohibit nonjudicial foreclosure for fines, penalties, late fees, or legal fees, requiring court proceedings for those types of charges.

TIMELINE

Extended the effective date of the bill from July 1, 2025 to July 1, 2050, likely due to legislative delays.

SB146_HD1 → SB146_HD2 · 9 edits

MAJOR

This bill expands Hawaii's condominium dispute resolution system by adding mandatory evaluative mediation for most disputes, establishing binding arbitration as a follow-up option, and creating a new attorney fee provision for collection actions. It also restructures how fines are imposed and collected, clarifies payment priority rules, and sets a future effective date of July 1, 2050. The changes aim to reduce litigation costs and promote alternative dispute resolution methods for condominium-related conflicts.

Scope change

The bill expands the scope of mandatory alternative dispute resolution to cover most condominium disputes, with specific exceptions for urgent matters like safety threats and personal injury claims. It also extends dispute resolution requirements to condominium corporations beyond just condominium associations.

REQUIREMENT

Added mandatory evaluative mediation for condominium disputes involving declaration, bylaws, or house rules interpretation, except for urgent matters like property damage threats, personal injury, or insurance coverage issues.

Established binding arbitration as a secondary option after evaluative mediation fails, requiring all parties to agree in writing to be bound by the outcome.

Added new attorney fee provision requiring prevailing parties to be awarded reasonable attorney fees and costs in condominium collection actions, foreclosure proceedings, and declaration enforcement cases.

Repealed existing sections related to attorney fees and alternative dispute resolution procedures that were replaced by the new comprehensive framework.

FISCAL

Created funding mechanisms through the condominium education trust fund to support mediation fees ($150 per party) and arbitration fees ($150 per party), with caps of $3,500 for mediation and $6,000 for arbitration.

ENFORCEMENT

Modified fine collection procedures by adding requirements for notice of appeal procedures and establishing when fines become collectible after appeals expire or are upheld.

DEFINITION

Added new definitions for 'condominium-related dispute' and 'evaluative mediation' to clarify what disputes require alternative dispute resolution.

TIMELINE

Set the effective date of the entire bill to July 1, 2050, significantly delaying implementation of these changes.

ELIGIBILITY

Modified payment priority rules to require common expense assessments to be paid first before other charges like fines, late fees, or attorney fees can be collected.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 10, 2025

Amended

Senate disagrees with House amendments.

upper

Apr 10, 2025

Introduced

Received from House (Hse. Com. No. 630).

upper

Apr 8, 2025

Lower · Passed

Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Alcos, Garcia, Iwamoto, Muraoka, Pierick, Shimizu voting no (6) and Representative(s) Cochran excused (1). Transmitted to Senate.

lower

Apr 2, 2025

Lower · Passed

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Tarnas, Poepoe, Hashem, Kahaloa, Perruso, Takayama, Todd; Ayes with reservations: Representative(s) Belatti; 2 Noes: Representative(s) Garcia, Shimizu; and 1 Excused: Representative(s) Cochran.

lower

Mar 21, 2025

Committee

Reported from CPC (Stand. Com. Rep. No. 1504) as amended in HD 1, recommending passage on Second Reading and referral to JHA.

lower

Mar 18, 2025

Lower · Passed

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Kong, Lowen, Marten; Ayes with reservations: Representative(s) Iwamoto; Noes: none; and 2 Excused: Representative(s) Tam, Pierick.

lower

Mar 6, 2025

Committee

Referred to CPC, JHA, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 101) in amended form (SD 1).

lower

Mar 4, 2025

Upper · Passed

Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 21, 2025

Upper · Passed

The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 4 Aye(s): Senator(s) Rhoads, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Gabbard.

upper

Feb 18, 2025

Upper · Passed

The committee(s) on JDC will hold a public decision making on 02-21-25 10:20AM; Conference Room 016 & Videoconference.

upper

Feb 14, 2025

Committee

Reported from CPN (Stand. Com. Rep. No. 663) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.

upper

Feb 12, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-05-25 10:00AM; Conference Room 229 & Videoconference.

upper

Jan 27, 2025

Committee

Re-Referred to CPN, JDC.

upper

Jan 17, 2025

Committee

Referred to CPN.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 10, 2025

Introduced

Pending Introduction.

upper

5 primary · 2 co-sponsors