STAND. COM. REP. NO. 2430

Honolulu, Hawaii

RE: S.B. No. 2298

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2298 entitled:

"A BILL FOR AN ACT RELATING TO COMMON INTEREST COMMUNITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to require common interest community proxy forms to include certain language related to the selection options for proxies.

Your Committee received testimony in support of this measure from eight individuals.

Your Committee received testimony in opposition to this measure from the Makaha Valley Towers Condominium Association; Associa; Law Offices of Mark K. McKellar, LLLC; Hawaii State Association of Parliamentarians; and fifteen individuals.

Your Committee received comments on this measure from the Hawaii Legislative Action Committee of the Community Associations Institute and two individuals.

Your Committee finds that proxy forms for common interest community elections can be confusing for owners, leading to disputes, challenges to election results, and issues achieving quorum. This measure would establish requirements for a proxy form to help owners understand the process and participate more effectively.

Your Committee notes concerns raised in testimony that this measure, in its current form, contains inaccuracies with regard to some of its statements concerning proxies. Further, the standard form proxy currently mandated in statute appears to have worked well for a number of years. Amendments to this measure are therefore necessary to address these concerns.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have required a specific standard proxy form for a condominium association or planned community association election;

(2) Replacing language that would have required a specific standard proxy form for a cooperative housing corporation election with language consistent with the existing provisions related to planned community associations;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) 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 S.B. No. 2298, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2298, S.D. 1, and be referred to your Committee on Judiciary.

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

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JARRETT KEOHOKALOLE, Chair