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HB571
HOUSE OF REPRESENTATIVES
H.B. NO.
571
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to condominiums
.
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 one in four Hawaii
residents are governed by condominium and community associations.
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Condominium associations in Hawaii have been
infamous in recent years for scandalous stories of embezzlement and
corruption.
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Often, rather than being a
representative body of unit owners, many individuals find their condominium board
inaccessible and unsympathetic.
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Further,
incumbent board members may retain their leadership roles through proxy voting
methods, ballot harvesting, and other coercive means, leaving few opportunities
for challenger candidates.
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The
implementation of term limits would stifle corruption and incentivize active
unit owner involvement in association governance.
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Accordingly, the purpose of this Act is to
impose term limits for condominium board members.
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SECTION
2
.
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Section
514B-107, Hawaii Revised Statutes, is amended to read as follows:
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�514B-107
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Board; limitations.
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(a)
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Members of the board
shall be unit owners or co-owners, vendees under an agreement of sale, a
trustee of a trust which owns a unit, or an officer, partner, member, or other person
authorized to act on behalf of any other legal entity which owns a unit.
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There shall not be more than one
representative on the board from any one unit.
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(b)
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No tenant, resident manager, or employee of a condominium shall serve on
its board.
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For the purposes of this subsection,
"tenant" means any person who occupies a dwelling unit for dwelling
purposes who is not also an owner of a dwelling unit in the same condominium.
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(c)
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A board member shall not serve more than two
consecutive terms.
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A member who has
previously served two consecutive terms may hold the position again once a
single term has passed since the member's departure.
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[
(c)
]
(d)
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An owner shall not act as an officer of an
association and an employee of the managing agent retained by the
association.
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Any owner who is a board
member of an association and an employee of the managing agent retained by the
association shall not participate in any discussion regarding a management
contract at a board meeting and shall be excluded from any executive session of
the board where the management contract or the property manager will be
discussed.
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[
(d)
]
(e)
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Directors shall not expend association funds
for their travel, directors' fees, and per diem, unless owners are informed and
a majority approve of these expenses; provided that, with the approval of the
board, directors may be reimbursed for actual expenditures incurred on behalf
of the association.
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The board meeting
minutes shall reflect in detail the items and amounts of the reimbursements.
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[
(e)
]
(f)
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Associations at their own expense shall
provide all board members with a current copy of the association's declaration,
bylaws, house rules, and, annually, a copy of this chapter with amendments.
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[
(f)
]
(g)
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The directors may expend association funds,
which shall not be deemed to be compensation to the directors, to educate and
train themselves in subject areas directly related to their duties and
responsibilities as directors; provided that the approved annual operating
budget shall include these expenses as separate line items.
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These expenses may include registration fees,
books, videos, tapes, other educational materials, and economy travel
expenses.
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Except for economy travel
expenses within the State, all other travel expenses incurred under this
subsection shall be subject to the requirements of subsection [
(d)
]
(e)
."
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SECTION 3.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 4.
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This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
Condominiums;
Term Limits; Accountability
Description:
Limits condominium
board members to serving no more than two consecutive terms.
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Allows such members to resume their positions
after one term has passed since their departure.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.