Bill Text: HI HB2401 | 2014 | Regular Session | Amended
Bill Title: Condominiums; Unit Owners; Documents, Records, and Information; Required Disclosures; Owner's Right to Receive Documents, Records, and Information
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-07-03 - Act 188, 7/1/2014 (Gov. Msg. No. 1291). [HB2401 Detail]
Download: Hawaii-2014-HB2401-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2401 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONDOMINIUMS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a large percentage of persons in Hawaii live in condominiums and are members of their condominium unit owners' association. The legislature also finds that many condominium projects are akin to small communities, and each unit owner has interests and goals for the improvement of the condominium project. The legislature believes that the boards of directors of these associations have a duty to make their management decisions as transparent as possible so that members are fully aware of the basis for those decisions and their implications.
The purpose of this Act is to encourage more transparency in the actions of condominium association boards of directors by:
(1) Increasing the enforcement powers of the real estate commission; and
(2) Ensuring board meetings, other than executive sessions, are open to all association members regardless of whether a majority of a quorum of the board votes otherwise.
SECTION 2. Chapter 514B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§514B- Enforcement. (a) Whenever the commission finds, based upon satisfactory evidence, that any person is violating or has violated any provision of this chapter or rule of the commission adopted pursuant thereto, the commission may conduct an investigation of the matter and bring an action in the name of the commission in any court of competent jurisdiction against the person to enjoin the person from continuing the violation or doing any acts in furtherance thereof. The commission shall also be entitled to recover attorneys' fees.
(b) Before the commission brings an action, pursuant to subsection (a), in any court of competent jurisdiction against any member of the board or managing agent, it may consider whether extenuating circumstances affected the person's ability to comply with the law. If the commission finds that extenuating circumstances exist, the commission may cease any further action.
(c) The commission shall adopt rules pursuant to chapter 91 to carry out the purposes of this section."
SECTION 3. Section 514A-48, Hawaii Revised Statutes, is amended to read as follows:
"§514A-48 Power to enjoin. Whenever the commission believes from satisfactory evidence that any person has violated section 514A-2, 514A-31 to 514A-49, 514A-61 to 514A-63, 514A-65, 514A-67, 514A-68, 514A-70, 514A-83.5, 514A-84, 514A-85, 514A-95, 514A-95.1, 514A-97, 514A-98, 514A-134, or 514B-72, or the rules of the commission adopted pursuant thereto, it may conduct an investigation on the matter and bring an action in the name of the people of the State in any court of competent jurisdiction against the person to enjoin the person from continuing the violation or engaging therein or doing any act or acts in furtherance thereof.
The commission may also recover attorneys' fees."
SECTION 4. Section 514B-125, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All meetings of the board, other
than executive sessions, shall be open to all members of the association, and
association members who are not on the board may participate in any
deliberation or discussion, other than executive sessions[, unless a
majority of a quorum of the board votes otherwise]."
SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2112.
Report Title:
Condominiums; Transparency
Description:
Clarifies the Real Estate Commission's enforcement authority by authorizing the award of attorneys' fees and, in certain cases, authorizing the commission discretionary power to decline to bring enforcement actions. Removes board's ability to close meetings and deny participation to association members. Effective July 1, 2112. (HB2401 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
