H.B. NO.



H.D. 1
















     SECTION 1.  The legislature finds that the board of directors of each association of apartment owners has broad powers that impact its members, such as adopting and amending budgets for revenues, expenditures, and reserves; hiring and discharging management agents and other independent contractors, agents, and employees; instituting, defending, or intervening in litigation or administrative proceedings affecting the condominium; regulating the use, maintenance, repair, replacement, and modification of common elements; imposing and receiving payments, fees, or charges for the use, rental, or operation of the common elements; imposing charges and penalties, including late fees and interest, for late payment of assessments; and levying fines for violations of the association's declaration, bylaws, and rules and regulations.

     The legislature further finds that the boards of directors of associations of apartment owners represent the homeowners in managing an apartment building, but the homeowners are vested with the ultimate decision-making power.  Opening the board's process to scrutiny and participation by association members is a viable and reasonable method to protect the members' interests.

     The purpose of this Act is to provide the members of associations of apartment owners an opportunity to attend and participate in all meetings of the board of directors of their association of apartment owners, including executive sessions with board approval, subject to certain limitations.

     SECTION 2.  Section 514B-125, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  All meetings of the board, other than executive sessions, shall be open to all members of the association, and association members who are not on the board [may] shall be permitted to participate in any deliberation or discussion, other than executive sessions[, unless a majority of a quorum of the board votes otherwise.] unless allowed pursuant to subsection (b).  During discussions, the board may limit the time provided to any member of the association to a reasonable time in accordance with rules adopted by the board.

     (b)  The board, with the approval of a majority of a quorum of its members, may adjourn a meeting and reconvene in executive session to discuss and vote upon matters:

     (1)  Concerning personnel;

     (2)  Concerning litigation in which the association is or may become involved;

     (3)  Necessary to protect the attorney-client privilege of the association; or

     (4)  Necessary to protect the interests of the association while negotiating contracts, leases, and other commercial transactions.

The general nature of any business to be considered in executive session shall first be announced in open session.  The board by a majority vote may allow members of the association to attend an executive session to present personal information.  Members of the association shall not be permitted to attend any portion of the executive session when the discussion pertains to any of the matters enumerated under paragraphs (1) through (4)."

     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, 2112.


Report Title:

Condominiums; Condominium Association Members; Board Meetings; Executive Sessions



Allows association members who are not on the board to participate in any deliberation or discussion, except for executive sessions.  Allows the condominium board members pursuant to board rules to limit the time provided to any member of the condominium association to participate in discussions to a reasonable time.  Allows members of a condominium association to attend executive sessions with approval by a majority vote of the condominium board members, subject to certain limitations.  (HB832 HD1)




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