SB2893

Report Title:

Condo Management Education Fund; Restriction; Fees

Description:

Prohibits use of the condominium management education fund to purchase real property. Allows the real estate commission to assess AOAOs fees of 150% of the commission's proposed budget less the fund balance at the end of the fiscal year.

THE SENATE	S.B. NO.	2893
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to condominium management education fund.

 

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

SECTION 1. The legislature finds that the condominium management education fund was established in 1989 as a trust fund to be managed by the real estate commission.

The purpose of this Act is to ensure that assessments of apartment owners for the condominium management education fund will not result in a surplus in excess of the purposes of the fund.

SECTION 2. Section 514A-131, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The commission may not use any [and all] moneys in the condominium management education fund for purposes [consistent] inconsistent with subsection (a)[.], including the purchase of real property."

SECTION 3. Section 514A-132, Hawaii Revised Statutes, is amended to read as follows:

"§514A-132 Payments to the fund. (a) Each condominium project or association of apartment owners with six or more apartments shall pay to the department of commerce and consumer affairs the condominium management education fund fee on or before June 30 of an odd-numbered year or within thirty days of the association of apartment owners' first meeting or within one year after the recordation of the purchase of the first apartment, as prescribed by rules adopted by the director of commerce and consumer affairs pursuant to chapter 91. Fees established by rule shall have a direct and proportionate relationship to the costs and expenses of the fund.

(b) The department of commerce and consumer affairs shall allocate the fees collected to the condominium management education fund established pursuant to section 514A-131.

(c) Payments of any fees required under this section shall be due on or before the registration due date and shall be nonrefundable. Failure to pay the required fee by the due date, shall result in a penalty assessment of ten per cent of the amount due and the association of apartment owners shall not have standing to bring any action to collect or to foreclose any lien for common expenses or other assessments in any court of this State until the amount due, including any penalty, is paid. Failure of an association of apartment owners to pay a fee required under this section shall not impair the validity of any claim of the association of apartment owners for common expenses or other assessments, or prevent the association of apartment owners from defending any action in any court of this State.

(d) Moneys in the condominium management education fund shall bear a direct and proportionate relationship to the costs and expenses of the commission in carrying out the purposes of the fund and shall not be maintained in excess of necessary sums.

(e) In any biennium, the commission may assess associations of apartment owners in an amount equal to one hundred fifty per cent of its proposed budget, less the amount of the fund balance as of June 30 of that fiscal year."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________