RELATING TO ASSOCIATION MANAGERS.

HB1312

HOUSE OF REPRESENTATIVES

H.B. NO.

1312

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO ASSOCIATION managers
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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The legislature finds that condominium
associations often hire resident managers, site managers, and general managers
to act as property managers to oversee a condominium project, its common
elements, and the individual units within the condominium project.
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Oftentimes these projects have property
values in the tens to hundreds of millions of dollars.
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The legislature further finds that condominium
associations are governed by volunteer boards of directors who often have
limited expertise in financing, property management, or building repair and
maintenance.
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Therefore, it is crucial
that the professional association managers hired to manage the day-to-day
operations of condominium associations possess the specialized knowledge and
expertise required to properly manage the associations they oversee.
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Furthermore, due to the establishment of more
stringent structural facility maintenance requirements, it is more important
than ever that condominium unit owners' associations are properly managed to
protect the life and safety of residents in their communities.

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The
legislature also finds that one way to ensure that association managers are
qualified is by establishing licensing requirements.
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The establishment of licensing requirements for
association managers will increase accountability, improve the safety of
residents, guests, and property, and help ensure repair and maintenance
obligations in condominium associations are addressed in a timely manner.

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Accordingly,
the purpose of this Act is to
establish licensing and
regulation requirements for association managers who oversee the daily
operations of a condominium unit owners' association
.

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SECTION
2.
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Chapter 514B, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:

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Part .
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ASSOCIATION MANAGERS

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�514B-
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Definitions.
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As used in this part:

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"Association
manager" means any person, regardless of that person's title, who is hired
or contracted by an association to oversee the daily operations of the
association, including managing the association's budget, collecting dues,
managing delinquencies, bookkeeping, maintaining common areas, performing site
inspections, complying with applicable laws, hiring association employees,
updating and maintaining insurance policies, enforcing governing documents,
performing dispute resolution, and managing vendors.

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"Department"
means the department of commerce and consumer affairs.

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�514B-
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License required.
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(a)
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Beginning July 1, 2027, it shall be unlawful for any person to be
employed or contracted by an association as an association manager without
having first obtained a license as provided in this part.

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(b)
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Any person who violates this section shall be
subject to a fine of not more than
$ for each separate
offense.
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Each day of each violation
shall constitute a separate offense.

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�514B-
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Exemptions.
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This part shall not apply to any employee or
contractor of an association manager who works under the supervision or
direction of a person who is licensed under this part.

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�514B-
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Real estate commission; additional powers.
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(a)
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In
addition to any other powers and duties authorized by law, the commission shall:

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(1)
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Establish licensure requirements for
association managers, including proof of completion of any third-party training
classes;

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(2)
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Grant, deny, or renew licenses to association
managers;

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(3)
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Adopt, amend, or repeal rules, pursuant to
chapter 91, not inconsistent with the law, as may be necessary to administer,
coordinate, and enforce the licensure of association managers pursuant to this
chapter;

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(4)
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Take disciplinary action against an
association manager for violation of this chapter or any rules adopted pursuant
to this part;

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(5)
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Develop and adopt rules relating to the
provision of services by association managers; and

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(6)
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Adopt a code of ethics to address permissible
and prohibited activities of licensees.

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�514B-
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License fees.
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The department shall collect a license fee in
an amount determined by the department to be reasonably necessary to reimburse
the department for the costs incurred in establishing and administering the
association manager licensure program pursuant to this part."

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SECTION 3.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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SECTION 4.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DCCA;
Association Managers; Real Estate Commission; Condominium Unit Owners'
Associations; Managers; Licensing

Description:

Creates
regulation requirements for association managers who oversee the daily operations
of a condominium unit owners' association.
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Beginning 7/1/2027, requires licensure of association managers by the
Real Estate Commission.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.