THE SENATE	S.B. NO.	2298
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
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 421I-4, Hawaii Revised Statutes, is amended to read as follows:

"[[]§421I-4[]] Proxies. (a) A proxy shall be valid only for a specific meeting and any of that meeting's adjournments.

(b) A shareholder may designate any person or the board of directors as a proxy, and the proxy may be limited as indicated by the shareholder. No proxy shall be irrevocable unless:

(1) The proxy is coupled with a financial interest in the dwelling unit; or

(2) The proxy is held pursuant to a first mortgage of record encumbering a dwelling unit or an agreement of sale affecting a dwelling unit.

(c) A proxy statement shall contain at least the following information:

(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.

(d) If a proxy is a standard proxy form authorized by the corporation, the proxy shall contain 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 the proxy is returned with no box or more than one of the boxes in paragraphs (1) through (4) checked, the proxy shall be counted for quorum purposes only."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.

Report Title:

Common Interest Communities; Cooperative Housing Corporations; Proxy Forms

Description:

Requires cooperative housing corporation proxy forms to include certain language related to the selection options for proxies. Effective 7/1/2050. (SD1)

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