Condo Board; Education Fund

Increases real estate commission by 3 members who are apartment
owners of units in condominium property regimes; clarifies that
moneys in the condominium management education fund shall only be
used to carry out its responsibilities under the condominium
management education fund only. (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that the real estate
 2 commission collects annual fees from condominium owners
 3 associations for deposit to the condominium management education
 4 fund.  In recent years, the number of training and workshop
 5 opportunities provided for condominium management has been
 6 limited.  Therefore, excess funds are at-risk of being deposited
 7 into the general fund.  In an effort to keep government
 8 operations from growing too large, condominium associations need
 9 representation on the real estate commission rather than the
10 establishment of a condominium commission.  
11      Funds from the education fund are currently being used for
12 staffing the commission for non-education fund purposes, contrary
13 to legislative intent.  The legislature further finds that it
14 should be the condominium associations that make decisions
15 regarding the appropriate use of the fund.  Therefore, the
16 purpose of this Act is to add three additional seats to the
17 commission for representatives of condominium associations and
18 prohibit the use of the education funds for hiring staff that
19 does not exclusively carry out the responsibilities of the

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                                     S.B. NO.           S.D. 1

 1 education fund.
 2      SECTION 2.  Section 467-3, Hawaii Revised Statutes, is
 3 amended to read as follows:
 4      "467-3 Commission, appointments, qualifications, tenure.
 5 There shall be appointed a commission to be known as the real
 6 estate commission, [to consist] consisting of [nine] twelve
 7 members, at least four of whom shall be licensed real estate
 8 brokers who have been engaged in business as licensed real estate
 9 brokers or salespersons for three years immediately preceding
10 their appointments, each of whom shall be a citizen of the United
11 States and shall have resided in the State for at least three
12 years preceding appointment, and one of whom shall be designated
13 by the appointing power as chairperson.  Four members shall be
14 residents of the city and county of Honolulu, one shall be a
15 resident of the county of Hawaii, one shall be a resident of the
16 county of Maui, and one shall be a resident of the county of
17 Kauai and [two] five members shall be public members.  At least
18 three of the twelve members shall be apartment owners of units in
19 condominium property regimes.
20      Appointments shall be made for a term of four years,
21 commencing from the date of expiration of the last preceding term
22 and shall be made to expire on June 30.  Appointments shall be
23 made so that at least one appointment shall be required each

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                                     S.B. NO.           S.D. 1

 1 year.
 2      Any vacancy shall be filled by appointment for the unexpired
 3 term."
 4      SECTION 3.  Section 514A-133, Hawaii Revised Statutes, is
 5 amended by amending subsection (b) to read as follows:
 6      "(b)  [The] In order to carry out the responsibilities under
 7 this part, the commission and the director of commerce and
 8 consumer affairs may use moneys in the condominium management
 9 education fund to employ necessary personnel not subject to
10 chapters 76 and 77 for additional staff support, hired
11 exclusively to carry out responsibilities under this part, to
12 provide office space, and to purchase equipment, furniture, and
13 supplies [required by the commission to carry out its
14 responsibilities under this part].  Moneys used from the
15 condominium management education fund must exclusively be used to
16 carry out the commission's responsibilities under this part."
17      SECTION 4.  Statutory material to be repealed is bracketed.
18 New statutory material is underscored.
19      SECTION 5.  This Act shall take effect upon its approval.