Bill Text: HI SB2223 | 2010 | Regular Session | Introduced

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Bill Title: Condominium Associations; Board of Directors; Term Limits

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-05 - (S) The committee(s) on CPN recommend(s) that the measure be HELD. The votes in CPN were as follows: 6 Aye(s): Senator(s) Baker, Ige, Espero, Green, Sakamoto, Hemmings; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Ihara. [SB2223 Detail]

Download: Hawaii-2010-SB2223-Introduced.html

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THE SENATE	S.B. NO.	2223
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

 

 

Relating to condominium boards of directors.

 

 

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

 

     SECTION 1.  Section 514A-82, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The bylaws shall provide for at least the following:

     (1)  Board of directors:

         (A)  The election of a board of directors;

         (B)  The number of persons constituting the board; provided that condominiums with more than one hundred individual apartment units shall have an elected board of not less than nine members unless not less than sixty‑five per cent of all apartment owners vote by mail ballot, or at a special or annual meeting, to reduce the minimum number of directors;

         (C)  That for the initial term of office, directors shall serve for a term of [three] two years or the term as specified by the bylaws or until their successors have been elected or appointed; provided that no person shall serve as a director for more than two consecutive years without a period of at least one year between terms of service;

         (D)  The powers and duties of the board;

         (E)  The compensation, if any, of the directors; and

         (F)  Whether or not the board may engage the services of a manager or managing agent, or both, and specifying which of the powers and duties granted to the board by this chapter or otherwise may be delegated by the board to either or both of them;

     (2)  Method of calling meetings of the apartment owners; what percentage, if other than a majority of apartment owners, constitutes a quorum; what percentage, consistent with this chapter, is necessary to adopt decisions binding on all apartment owners and that votes allocated to any area that constitutes a common element under section 514A‑13(h) shall not be cast at any association meeting, regardless of whether it is so designated in the declaration;

     (3)  Election of a president from among the board of directors who shall preside over the meetings of the board of directors and of the association of apartment owners;

     (4)  Election of a secretary who shall keep the minute book wherein resolutions shall be recorded;

     (5)  Election of a treasurer who shall keep the financial records and books of account;

     (6)  Operation of the property, payment of the common expenses, and determination and collection of the common charges;

     (7)  Manner of collecting common expenses, expenses, costs, and fees recoverable by the association under section 514A‑94, and any penalties and late charges;

     (8)  Designation and removal of personnel necessary for the maintenance, repair, and replacement of the common elements;

     (9)  Method of adopting and amending administrative rules governing the details of the operation and use of the common elements;

    (10)  The restrictions on and requirements respecting the use and maintenance of the apartments and the use of the common elements, not set forth in the declaration, as are designed to prevent unreasonable interference with the use of their respective apartments and of the common elements by the several apartment owners;

    (11)  The first meeting of the association of apartment owners shall be held not later than one hundred eighty days after recordation of the first apartment conveyance; provided forty per cent or more of the project has been sold and recorded.  If forty per cent of the project is not sold and recorded at the end of one year, an annual meeting shall be called; provided ten per cent of the apartment owners so request;

    (12)  All members of the board of directors shall be owners, co‑owners, vendees under an agreement of sale, or an officer of any corporate owner of an apartment.  The partners in a general partnership and the general partners of a limited partnership shall be deemed to be the owners of an apartment for this purpose.  There shall not be more than one representative on the board of directors from any one apartment;

    (13)  A director shall not cast any proxy vote at any board meeting, nor shall a director vote at any board meeting on any issue in which the director has a conflict of interest;

    (14)  No resident manager of a condominium shall serve on its board of directors;

    (15)  The board of directors shall meet at least once a year;

    (16)  All association and board of directors meetings shall be conducted in accordance with the most current edition of Robert's Rules of Order;

    (17)  All meetings of the association of apartment owners shall be held at the address of the condominium project or elsewhere within the State as determined by the board of directors; and

    (18)  Penalties chargeable against persons for violation of the covenants, conditions, or restrictions set forth in the declaration, or of the bylaws and administrative rules adopted pursuant thereto, method of determination of violations, and manner of enforcing penalties, if any."

     SECTION 2.  Section 514B-107, Hawaii Revised Statutes, is amended to read as follows:

     "§514B-107  Board; limitations.  (a)  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.  There shall not be more than one representative on the board from any one unit.

     (b)  No resident manager or employee of a condominium shall serve on its board.

     (c)  An owner shall not act as an officer of an association and an employee of the managing agent retained by the association.  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.

     (d)  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.  The minutes shall reflect in detail the items and amounts of the reimbursements.

     (e)  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.

     (f)  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.  These expenses may include registration fees, books, videos, tapes, other educational materials, and economy travel expenses.  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).

     (g)  No person shall serve as a director for more than two consecutive years without a period of at least one year between terms of service."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2010.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Condominium Associations; Board of Directors; Term Limits

 

Description:

Imposes term limits of no more than two consecutive years for members of the board of directors of a condominium association. 

 

 

 

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