Bill Text: HI SR171 | 2020 | Regular Session | Introduced
Bill Title: Requesting That The Department Of Commerce And Consumer Affairs Convene A Task Force To Recommend Laws And Regulations Concerning Condominium Association Director And Officer Education And Training.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2020-03-10 - Referred to CPH. [SR171 Detail]
Download: Hawaii-2020-SR171-Introduced.html
|
THE SENATE |
S.R. NO. |
171 |
|
THIRTIETH LEGISLATURE, 2020 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
SENATE RESOLUTION
Requesting that the department of Commerce and Consumer affairs convene a task force to recommend laws and regulations concerning condominium association Director AND OFFICER education and training.
WHEREAS, Hawaii has the highest number of condominium association board of directors and officers' liability insurance claims in the country and the amount of the claims are larger than those on the mainland; and
WHEREAS, most, if not all, of the claims made can be attributed to a lack of knowledge or experience of unpaid, volunteer directors of condominium associations relating to their respective governing documents, responsibilities as board members, and their liability for their failure to act in accordance with their fiduciary duties; and
WHEREAS, because insurance carriers in the State that provide directors and officers liability insurance policies for condominium associations have diminished to only two or three carriers, the claims have caused all condominium association director and officer insurance coverage premiums across the State to increase, as all condominium associations are in the same risk pool; and
WHEREAS, many of the claims have led to lawsuits that have resulted in substantial legal defense costs and multi-million dollar judgments against the association and their board members, and in some cases, judgment costs are not covered by insurance, meaning they are passed on to owners; and
WHEREAS, even if claims do not lead to a lawsuit, disputes require the association to incur legal or consultant expenses to resolve a dispute, the costs of which are not typically covered by the association's budget; and
WHEREAS, mandating education for condominium association directors and officers concerning ethical and legal standards pertaining to the condominium association may help to avoid future claims, which may also help to reduce association fees for Hawaii residents; and
WHEREAS, the Condominium Education Trust Fund has collected substantial funds over the years from condominium associations throughout the State, and one of the purposes of the fund is to educate condominium owners and association directors; now, therefore,
BE IT RESOLVED by the Senate of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, that the Department of Commerce and Consumer Affairs' Real Estate Commission is requested to convene a task force to recommend laws and regulations concerning the mandatory educational, training, and certification requirements of condominium association directors and officers; and
BE IT FURTHER RESOLVED that the task force is requested to include the following members:
(1) Chairperson of the Real Estate Commission or their designee, who shall serve as chairperson of the task force;
(2) A representative from the Community Associations Institute;
(3) A representative from the Hawaii Council of Community Associations;
(4) A representative from an organization that advocates for owners, to be selected by the chairperson;
(5) Representatives from three property management companies that operate in more than one county in the State, to be selected by the chairperson;
(6) A representative from the Hawaii Association of REALTORS;
(7) A representative from the insurance industry licensed to practice in the State who is familiar with directors and officers' liability insurance claims and policies, to be selected by the chairperson;
(8) A member of the Senate appointed by the President of the Senate;
(9) A member of the House of Representatives appointed by the Speaker of the House of Representatives; and
(10) Any other stakeholders deemed appropriate and necessary by the chairperson; and
BE IT FURTHER RESOLVED that the task force is requested to consider the following:
(1) The development of a curriculum to be adopted by the Department of Commerce and Consumer Affairs and to be completed by each director of a condominium association that covers topics including but not limited to the association's governing documents, directors' fiduciary duties and personal liability that may result from any breach of that duty, applicable codes of conduct, conflicts of interest, the business judgment rule, and confidentially;
(2) Whether associations' legal counsel or stakeholder groups can perform educational seminars to certify directors upon completion of the approved curriculum;
(3) Whether funds can be used from the Condominium Education Trust Fund to procure a vendor to create and administer webinars to educate and certify directors based on the approved curriculum;
(4) Enforcement remedies for noncompliance; and
(5) Any other matters deemed appropriate by the chairperson; and
BE IT FURTHER RESOLVED that the task force is requested to submit to the Legislature its findings, recommendations, and any proposed legislation, no later than twenty days prior to the convening of the Regular Session of 2021; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the Senate; Speaker of the House of Representatives; Director of Commerce and Consumer Affairs; Chairperson of the Real Estate Commission; Community Associations Institute; Hawaii Council of Community Associations; Hawaii Council of Associations of Apartment Owners; and Hawaii Association of REALTORS.
|
|
OFFERED BY: |
_____________________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condominium Associations; Directors; Education; Task Force; DCCA
