Bill Text: HI SB2483 | 2018 | Regular Session | Introduced

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Bill Title: Relating To Condominium Governing Instruments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-02-23 - The committee on CPH deferred the measure. [SB2483 Detail]

Download: Hawaii-2018-SB2483-Introduced.html

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THE SENATE	S.B. NO.	2483
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to condominium governing instruments.

 

 

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

 

     SECTION 1.  The legislature finds that condominiums are governed by declarations and bylaws that may be amended only by affirmative vote of a set percentage of unit owners.  For some condominiums, obtaining a response from a sufficient number of owners can be difficult and frustrates the voting process, so that amendments become almost impossible to adopt.

     The purpose of this Act is to maintain the current process that allows for the voting period to occur over a year's time and provide an alternative method of amendment, where sixty-seven per cent of owners who are present at a pre-announced meeting, or a majority of all unit owners, whichever is greater, can approve the proposed amendment.  This alternative method of amendment provides additional protection by requiring advance notice that the alternative method is being utilized, a designated meeting for discussion and voting, and a specific item on the proxy form that is mailed to all unit owners.

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

     "§514B-    Declaration and bylaws; alternative method of amendment.  (a)  Notwithstanding any other provision of this chapter, the declaration and bylaws of a condominium may be amended by the following alternative method:

     (1)  The proposed amendment may be originated by:

          (A)  A volunteer unit owners' group containing a petition signed and dated by not less than twenty-five per cent of the unit owners, as shown in the association's record of ownership; or

          (B)  The board of directors;

     (2)  The petition, if any, and the proposed amendment shall contain a supplemental statement that the alternative method of amendment authorized by this section will be used;

     (3)  The proposed amendment shall be accompanied by a detailed rationale for the amendment;

     (4)  Advance notice shall be mailed by the board to the unit owners at the association's expense, stating that the alternative method of amendment is being utilized and announcing the date, time, and location of an association meeting, which shall be not less than thirty days from the date of the mailing, for consideration and voting on the proposed amendment;

     (5)  The advance notice in paragraph (4) shall be accompanied by a detailed rationale for the proposed amendment and a proxy form containing an option for a specific vote on the proposed amendment; and

     (6)  The proposed amendment shall be valid if:

          (A)  At the announced association meeting, at least sixty-seven per cent of the unit owners present and voting, whether in person or by proxy, approve the proposed amendment; or

          (B)  An affirmative vote of a majority of all unit owners approves the proposed amendment;

          whichever is greater.

     (b)  If any of the notice requirements specified by subsection (a) are not met or the proposed amendment is amended, then the vote required for adoption of the proposed amendment shall increase to an affirmative vote of at least sixty-seven per cent of all unit owners.

     (c)  If the proposed amendment is duly adopted, the board shall cause the amendment to be recorded.

     (d)  The quorum requirements for an association meeting shall not be amended pursuant to this section."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Condominiums; Governing Instruments; Alternative Method of Amendment; Declaration; Bylaws

 

Description:

Authorizes an alternative method of amendment for a condominium association's declaration and bylaws; provided that certain requirements are met.

 

 

 

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