REPORT TITLE:
Term limits


DESCRIPTION:
Provides that directors of condominium associations shall serve
no more than six years in any nine-year period.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.960        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
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                   A  BILL  FOR  AN  ACT

RELATING TO CONDOMINIUM ASSOCIATIONS.



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

 1      SECTION 1.  Section 514A-82, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  The bylaws shall provide for at least the following:
 
 4      (1)  Board of directors:
 
 5           (A)  The election of a board of directors;
 
 6           (B)  The number of persons constituting the board;
 
 7                provided that condominiums with more than one
 
 8                hundred individual apartment units shall have an
 
 9                elected board of not less than nine members unless
 
10                not less than sixty-five per cent of all apartment
 
11                owners vote by mail ballot, or at a special or
 
12                annual meeting, to reduce the minimum number of
 
13                directors;
 
14           (C)  That for the initial term of office, directors
 
15                shall serve for a term of three years or the term
 
16                as specified by the bylaws or until their
 
17                successors have been elected or appointed;
 

 
 
Page 2                                                     
                                     H.B. NO.960        
                                                        
                                                        

 
 1                provided that no director shall serve for more
 
 2                than six years in any nine-year period;
 
 3           (D)  The powers and duties of the board;
 
 4           (E)  The compensation, if any, of the directors; and
 
 5           (F)  Whether or not the board may engage the services
 
 6                of a manager or managing agent, or both, and
 
 7                specifying which of the powers and duties granted
 
 8                to the board by this chapter or otherwise may be
 
 9                delegated by the board to either or both of them;
 
10      (2)  Method of calling meetings of the apartment owners;
 
11           what percentage, if other than a majority of apartment
 
12           owners, constitutes a quorum; what percentage,
 
13           consistent with this chapter, is necessary to adopt
 
14           decisions binding on all apartment owners and that
 
15           votes allocated to any area that constitutes a common
 
16           element under section 514A-13(h) shall not be cast at
 
17           any association meeting, regardless of whether it is so
 
18           designated in the declaration;
 
19      (3)  Election of a president from among the board of
 
20           directors who shall preside over the meetings of the
 
21           board of directors and of the association of apartment
 
22           owners;
 

 
 
 
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                                     H.B. NO.960        
                                                        
                                                        

 
 1      (4)  Election of a secretary who shall keep the minute book
 
 2           wherein resolutions shall be recorded;
 
 3      (5)  Election of a treasurer who shall keep the financial
 
 4           records and books of account;
 
 5      (6)  Operation of the property, payment of the common
 
 6           expenses, and determination and collection of the
 
 7           common charges;
 
 8      (7)  Manner of collecting common expenses, expenses, costs,
 
 9           and fees recoverable by the association under section
 
10           514A-94, and any penalties and late charges;
 
11      (8)  Designation and removal of personnel necessary for the
 
12           maintenance, repair, and replacement of the common
 
13           elements;
 
14      (9)  Method of adopting and amending administrative rules
 
15           governing the details of the operation and use of the
 
16           common elements;
 
17     (10)  The restrictions on and requirements respecting the use
 
18           and maintenance of the apartments and the use of the
 
19           common elements, not set forth in the declaration, as
 
20           are designed to prevent unreasonable interference with
 
21           the use of their respective apartments and of the
 
22           common elements by the several apartment owners;
 

 
 
 
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                                     H.B. NO.960        
                                                        
                                                        

 
 1     (11)  The first meeting of the association of apartment
 
 2           owners shall be held not later than one hundred eighty
 
 3           days after recordation of the first apartment
 
 4           conveyance; provided forty per cent or more of the
 
 5           project has been sold and recorded.  If forty per cent
 
 6           of the project is not sold and recorded at the end of
 
 7           one year, an annual meeting shall be called; provided
 
 8           ten per cent of the apartment owners so request;
 
 9     (12)  All members of the board of directors shall be owners,
 
10           co-owners, vendees under an agreement of sale, or an
 
11           officer of any corporate owner of an apartment.  The
 
12           partners in a general partnership and the general
 
13           partners of a limited partnership shall be deemed to be
 
14           the owners of an apartment for this purpose.  There
 
15           shall not be more than one representative on the board
 
16           of directors from any one apartment;
 
17     (13)  A director shall not cast any proxy vote at any board
 
18           meeting, nor shall a director vote at any board meeting
 
19           on any issue in which the director has a conflict of
 
20           interest;
 
21     (14)  No resident manager of a condominium shall serve on its
 
22           board of directors;
 

 
 
 
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                                     H.B. NO.960        
                                                        
                                                        

 
 1     (15)  The board of directors shall meet at least once a year;
 
 2     (16)  All association and board of directors meetings shall
 
 3           be conducted in accordance with the most current
 
 4           edition of Robert's Rules of Order;
 
 5     (17)  All meetings of the association of apartment owners
 
 6           shall be held at the address of the condominium project
 
 7           or elsewhere within the State as determined by the
 
 8           board of directors; and
 
 9     (18)  Penalties chargeable against persons for violation of
 
10           the covenants, conditions, or restrictions set forth in
 
11           the declaration, or of the bylaws and administrative
 
12           rules adopted pursuant thereto, method of determination
 
13           of violations, and manner of enforcing penalties, if
 
14           any."
 
15      SECTION 2.  New statutory material is underscored.
 
16      SECTION 3.  This Act shall take effect upon its approval.
 
17 
 
18                           INTRODUCED BY:  _______________________