THE SENATE

S.B. NO.

2298

THIRTY-THIRD LEGISLATURE, 2026

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to common INTEREST communities.

 

 

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

 

     SECTION 1.  Section 421J-4, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  If a proxy is a standard proxy form authorized by the association, the proxy shall contain the following statement, including boxes wherein the owner may indicate that the proxy is given:

    [(1)  For quorum purposes only;

     (2)  To the individual whose name is printed on a line next to this box;

     (3)  To the board of directors as a whole and that the vote be made on the basis of the preference of the majority of the directors present at the meeting; or

     (4)  To those directors present at the meeting and the vote to be shared with each board member receiving an equal percentage;

Provided that if]

  "[  ]   For quorum purposes only.  In order for the Association to legally conduct the Annual Meeting, it requires a Quorum percentage of Ownership.  If this box is selected, this proxy counts towards the quorum number requirement.  Quorum Purposes Only has no voting actions.

   [  ]   To the individual whose name is printed on a line next to this box:_________________________________________.

          If you are unable to attend the Annual Meeting or think you may not be able to attend the Annual Meeting, you can select this box and name an individual to represent you as a proxy.  If, on the day of the Annual Meeting, you do attend and check in at the Annual Meeting, this proxy shall become void and you will be directly participating in the voting ballot process.

   [  ]   To the Board as a whole.  This selection means the proxy is presented to the entire Board, not just to individual Directors.  The Board is voting together as one.  If you are happy with the composition of the total Board (Board as a whole), selecting this box will put your vote toward re-electing the current members of the Board.

   [  ]   To those Directors present at the Meeting with the vote to be shared with each Director receiving an equal percentage.  This selection means the vote is to be made on the basis of the preference of the Directors present at the Meeting.  Only Directors who are physically present at the Meeting count toward the vote.  For example, if you have a 7 member Board, but only 5 attend, the majority is 3 votes (out of 5 present), not 4 (out of 7 total).  Your ownership is then divided amongst the Board Members present at the Meeting.  These Board Members will then submit their voting ballot based upon their vote and not anyone else's vote."

If the proxy is returned with no box checked, or if more than one of the foregoing boxes [in paragraphs (1) through (4)] is checked, the proxy shall be counted for quorum purposes only."

     SECTION 2.  Section 421I-4, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  A proxy [statement] form shall contain [at least the following information:], at minimum:

     (1)  The name of the corporation;

     (2)  The date of the meeting to which the proxy is applicable;

     (3)  The printed name and the signature of the shareholder giving the proxy; [and]

     (4)  The dwelling unit or units for which the proxy is given[.]; and

     (5)  The following statement, including boxes wherein the shareholder may indicate that the proxy is given:

  "[  ]   For quorum purposes only.  In order for the Corporation to legally conduct the Meeting, it requires a Quorum percentage of Ownership.  If this box is selected, this proxy counts towards the quorum number requirement.  Quorum Purposes Only has no voting actions.

   [  ]   To the individual whose name is printed on a line next to this box:_________________________________________.

          If you are unable to attend the Meeting or think you may not be able to attend the Meeting, you can select this box and name an individual to represent you as a proxy.  If, on the day of the Meeting, you do attend and check in at the Meeting, this proxy shall become void and you will be directly participating in the voting ballot process.

   [  ]   To the Board as a whole.  This selection means the proxy is presented to the entire Board, not just to individual Directors.  The Board is voting together as one.  If you are happy with the composition of the total Board (Board as a whole), selecting this box will put your vote toward re-electing the current members of the Board.

   [  ]   To those Directors present at the Meeting with the vote to be shared with each Director receiving an equal percentage.  This selection means the vote is to be made on the basis of the preference of the Directors present at the Meeting.  Only Directors who are physically present at the Meeting count toward the vote.  For example, if you have a 7 member Board, but only 5 attend, the majority is 3 votes (out of 5 present), not 4 (out of 7 total).  Your ownership is then divided amongst the Board Members present at the Meeting.  These Board Members will then submit their voting ballot based upon their vote and not anyone else's vote."

If the proxy is returned with no box checked, or if more than one of the foregoing boxes is checked, the proxy shall be counted for quorum purposes only."

     SECTION 3.  Section 514B-123, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  If a proxy is a standard proxy form authorized by the association, the proxy shall comply with the following additional requirements:

     (1)  The proxy shall contain the following statement, including boxes wherein the owner may indicate that the proxy is given:

         [(A)  For quorum purposes only;

          (B)  To the individual whose name is printed on a line next to this box;

          (C)  To the board as a whole and that the vote is to be made on the basis of the preference of the majority of the directors present at the meeting; or

          (D)  To those directors present at the meeting with the vote to be shared with each director receiving an equal percentage;]

  "[  ]   For quorum purposes only.  In order for the Association to legally conduct the Annual Meeting, it requires a Quorum percentage of Ownership.  If this box is selected, this proxy counts towards the quorum number requirement.  Quorum Purposes Only has no voting actions.

   [  ]   To the individual whose name is printed on a line next to this box:_________________________________________.

          If you are unable to attend the Annual Meeting or think you may not be able to attend the Annual Meeting, you can select this box and name an individual to represent you as a proxy.  If, on the day of the Annual Meeting, you do attend and check in at the Annual Meeting, this proxy shall become void and you will be directly participating in the voting ballot process.

   [  ]   To the Board as a whole.  This selection means the proxy is presented to the entire Board, not just to individual Directors.  The Board is voting together as one.  If you are happy with the composition of the total Board (Board as a whole), selecting this box will put your vote toward re-electing the current members of the Board.

   [  ]   To those Directors present at the Meeting with the vote to be shared with each Director receiving an equal percentage.  This selection means the vote is to be made on the basis of the preference of the Directors present at the Meeting.  Only Directors who are physically present at the meeting count toward the vote.  For example, if you have a 7 member Board, but only 5 attend, the majority is 3 votes (out of 5 present), not 4 (out of 7 total).  Your ownership is then divided amongst the Board Members present at the meeting.  These Board Members will then submit their voting ballot based upon their vote and not anyone else's vote.";

          provided that if the proxy is returned with no box checked, or if more than one of the foregoing boxes [in subparagraphs (A) through (D)] is checked, the proxy shall be counted for quorum purposes only; and

     (2)  The proxy form shall also contain a box wherein the owner may indicate that the owner wishes to obtain a copy of the annual audit report required by section 514B‑150."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

 

 

 

Report Title:

Common Interest Communities; Planned Community Associations; Cooperative Housing Corporations; Condominium Associations; Proxy Forms; Explanations

 

Description:

Requires common interest community proxy forms to include certain language related to the selection options for proxies.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.