Bill Text: HI HB1464 | 2011 | Regular Session | Amended

Hawaii House Bill 1464 (Prior Session Legislation)

Bill Title: Planned Community Associations; Board Liability

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2011-02-11 - (H) Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC/JUD with none voting no (0) and Cabanilla, Hashem excused (2). [HB1464 Detail]

Download: Hawaii-2011-HB1464-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1464
TWENTY-SIXTH LEGISLATURE, 2011		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PLANNED COMMUNITY ASSOCIATIONS.

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

SECTION 1. The legislature finds that the rights of homeowners in residential associations need to be protected without unduly impairing the ability of the associations' board to perform its duties. Discussions, decisions, and actions of homeowner association boards are intertwined with or significantly enabled or encouraged by government, therefore any deliberations or decisions made should be as open and transparent as possible for the benefit of the association members.

Transparency and an open exchange of ideas between homeowner association boards and their members is best promoted by the evenhanded treatment and fair enforcement of the rules, the prohibiting of harassment or intimidation of association members, and the elimination of any potential conflicts of interest that board members may have.

The purpose of this Act is to protect the rights of members belonging to homeowner associations by promoting transparency and the open exchange of ideas.

SECTION 2. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§421J- Board of directors; harassment, intimidation, and financial benefit; liability. (a) The board shall not harass or intimidate any of its members, nor shall the board employ any of its available resources to harass or intimidate any of its association members.

(b) A board member shall not benefit financially from any board decision or action. A board member who breaches the duty of loyalty by benefiting financially from a board decision or action shall be liable to all members for all damages resulting from the breach."

SECTION 3. Section 421J-5, Hawaii Revised Statutes, is amended to read as follows:

"§421J-5 Meetings of the board of directors; committee or subcommittee. (a) All meetings of the board of directors, other than executive sessions, shall be open to all members to provide input on the matters being discussed. Members who are not on the board of directors may participate in any deliberation or discussion, other than during executive sessions, unless a majority of a quorum of the board of directors votes otherwise.

(b) The board of directors shall meet at least once each year.

(c) The board of directors, with the approval of a majority of a quorum of its members, may adjourn any meeting and reconvene in executive session to discuss and vote upon matters concerning personnel, litigation in which the association is or may become involved, or as may be necessary to protect the attorney-client privilege of the association. The general nature of any business to be considered in executive session shall be first announced in the regular session.

(d) No board member shall vote by proxy at board meetings.

(e) A director who has a conflict of interest on any issue before the board shall disclose the nature of the conflict of interest prior to a vote on that issue at the board meeting, and the minutes of the meeting shall record the fact that a disclosure was made.

(f) The board may appoint committees or subcommittees to review and consider any specific matters, and may alter or eliminate the committees or subcommittees; provided that the board in the minutes of the meeting at which the action was taken to appoint the committee or subcommittee shall:

(1) Report that the committee or subcommittee was appointed;

(2) Identify the members of the committee or subcommittee; and

(3) Describe the matter that the committee or subcommittee is to review and consider.

(g) Minutes of the meetings of the board of directors shall include the recorded vote of each board member present on all motions except motions voted upon in executive session.

(h) The board shall provide reasonable notice to all members of scheduled meetings and pending board decisions and actions."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

Report Title:

Planned Community Associations; Board Liability

Description:

Prohibits the Board of Directors of home associations from harassing or intimidating its members and from benefiting from any board decision or action. Requires reasonable notice of board actions. (HB1464 HD1)

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