Report Title:

Planned Community Associations; Real Estate Commission; Registration



Requires planned community associations to register and re-register with and pay fees to the real estate commission on a biennial basis.



S.B. NO.













relating to planned community associations.





SECTION 1. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"421J‑   Association; registration. (a) Each project or association having more than five units shall:

(1) Register with the commission through the approval of a completed registration application, the payment of fees, and the submission of any other additional information set forth by the commission. The registration shall be for a biennial period with termination on June 30 of each odd-numbered year. The commission shall prescribe a deadline date prior to the termination date for the submission of a completed re-registration application, the payment of fees, and the submission any other additional information set forth by the commission. Any project that has not met the submission requirements by the deadline date shall be considered a new applicant for registration and be subject to initial registration requirements. Any new project or association shall register within thirty days of the association's first meeting. If the association has not held its first meeting and it is at least one year after the recordation of the purchase of the first unit in the project, the developer or developer's affiliate or the managing agent shall register on behalf of the association and shall comply with this section. The public information required to be submitted on any completed application form shall include but not be limited to:

(A) The names and positions of the officers of the association;

(B) The name of the association's managing agent, if any;

(C) The street and the postal address of the planned community; and

(D) The name and current mailing address of a designated officer of the association where the officer can be contacted directly;

(2) Pay a nonrefundable application fee and, upon approval, an initial registration fee, and a re-registration fee upon re-registration, as provided in rules adopted by the director of commerce and consumer affairs pursuant to chapter 91;

(3) Register or re-register and pay the required fees by the due date. Failure to register or re-register or pay the required fees by the due date shall result in the assessment of a penalty equal to the amount of the registration or re-registration fee; and

(4) Report promptly in writing to the commission any changes to the information contained on the registration or re-registration application or any other documents required by the commission. Failure to do so may result in termination of registration and subject the project or the association to initial registration requirements.

(b) The commission may reject or terminate any registration submitted by a project or an association that fails to comply with this section. Any association that fails to register as required by this section or whose registration is rejected or terminated shall not have standing to maintain any action or proceeding in the courts of this State until it registers. The failure of an association to register, or rejection or termination of its registration, shall not impair the validity of any contract or act of the association nor prevent the association from defending any action or proceeding in any court in this State."

SECTION 2. Section 421J-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Commission" means the real estate commission of the State."

SECTION 3. New statutory material is underscored.

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. This Act shall take effect upon its approval.