STAND. COM. REP. NO. 3014

Honolulu, Hawaii

RE: S.B. No. 2298

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2298, S.D. 1, 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 cooperative housing corporation proxy forms to include certain language related to the selection options for proxies.

Your Committee received testimony in support of this measure from the Hawaiʻi Council of Community Associations.

Your Committee received comments on this measure from the Community Associations Institute Legislative Action Committee.

Your Committee finds that confusing or misleading proxy forms in common interest communities may result in owners unintentionally or incorrectly surrendering their voting power. Lack of clarity in proxy designation contributes to unnecessary disputes, challenges to election outcomes, and delayed meetings due to quorum issues. Requiring proxy forms to include clear, standardized options ensures owners are able to make informed choices and that proxies accurately reflect owner intent. This measure therefore improves transparency and legitimacy in the operation of common interest communities.

Your Committee has amended this measure by specifying that the shareholder, rather than the owner, may make indications in a standard proxy form.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2298, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2298, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair