CONFERENCE COMMITTEE REP. NO. 171

Honolulu, Hawaii

, 2023

RE: S.B. No. 729

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 729, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO BOARD MEMBERS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Require the Auditor to conduct a sunrise analysis on the proposed regulatory controls for members of condominium association boards of directors (board members); and

(2) Require the Real Estate Commission to develop a curriculum to be made available to board members.

Your Committee on Conference finds that existing law imposes a level of care and loyalty on board members to their associations to the level and extent required of an officer or director of a corporation. However, board members are volunteers who often do not have the proper training or education regarding their authority and duties. This measure takes important steps to ensuring that board members understand their authorities and duties to improve as leaders of their condominium associations.

Your Committee on Conference has amended this measure by:

(1) Deleting language that would have required the Auditor to conduct a sunrise analysis on the proposed regulatory controls for board members;

(2) Clarifying that the Real Estate Commission shall develop a curriculum for leadership training for condominium boards of directors, including pertinent provisions of chapter 514B, Hawaii Revised Statutes; association governing documents; and the fiduciary duties of board members;

(3) Inserting an effective date of July 1, 2023; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 729, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 729, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ TROY N. HASHIMOTO Co-Chair	____________________________ JARRETT KEOHOKALOLE Chair
____________________________ MARK M. NAKASHIMA Co-Chair
____________________________ LISA KITAGAWA Co-Chair