STAND. COM. REP. NO. 3675

Honolulu, Hawaii

RE: H.B. No. 2317

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 2317, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PLANNED COMMUNITY ASSOCIATIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify that the deadline for proxy votes to be delivered to the secretary of a planned community association or the managing agent for association meetings is 4:30 p.m. Hawaii-Aleutian Standard Time; and

(2) With respect to statements of owners requesting nomination to boards of directors that accompany notices of intent to distribute proxies by the board, specify that the statements are not to exceed one single-sided eight and one-half inches by eleven inches page.

Your Committee received testimony in support of this measure from the Hawaiʻi State Association of Parliamentarians; Palehua Townhouse Association; Hawaii First Realty LLC; Law Offices of Mark K. McKellar, LLLC; and thirteen individuals.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee received comments on this measure from two individuals.

Your Committee finds that, under existing law, planned community associations are allowed to limit the statements of owners who request a nomination to the board of directors to one hundred words. However, your Committee finds that this one-hundred-word limitation may not be sufficient to allow a person requesting a nomination to the board to appropriately convey their qualifications to other owners. Therefore, this measure repeals the one-hundred-word limitation, but maintains the requirement that the statement shall not exceed one single-sided eight and one-half inches by eleven inches page or one hundred kilobytes, if the board's notice of intent to distribute proxies states that a longer statement shall be available on the Internet.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2317, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2317, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair