STAND. COM. REP. NO. 634-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2317

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2317 entitled:

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

beg leave to report as follows:

The purpose 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, specify that the statements are not to exceed one page and require associations to provide an internet link to access statements.

Your Committees received testimony in support of this measure from the Hawaii First Realty LLC; Palehua Townhouse Association; and three individuals. Your Committees received comments on this measure from the Law Offices of Mark K. McKellar, LLLC; AOAO Waialae Place; AOAO Mariner's Village 1; The Continental Apartments; Community Associations Institute, Legislative Action Committee, Hawaii Chapter; Hawaiʻi State Association of Parliamentarians Legislative Committee; and numerous individuals.

Your Committees find that, under existing law, planned community associations are allowed to limit statements of owners requesting nomination to boards of directors to one hundred words. This limitation may be insufficient to appropriately convey a person's qualifications. This measure removes the one-hundred-word limitation but keeps the statement within a single eight and one-half inch by eleven inch page.

Your Committees have amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2317, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2317, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs,

____________________________ DAVID A. TARNAS, Chair

____________________________ MARK M. NAKASHIMA, Chair