Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 204, H.D. 1, S.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to establish additional rules for voting proxies in connection with the election of board members for planned community associations.

Your Committee on Conference finds that homeowners associations do not provide for the direct election of their boards of directors. Presently, members send in proxies that are exercised by the board to elect directors. This process reduces the possibility that candidates who are not favorably viewed by the existing board will be elected. Thus, the board of directors may be self-perpetuating, and this may not be in the best interest of the members of the association.

Your Committee on Conference further finds that the procedures and restrictions on the distribution of proxies established by this bill will provide association members with a fairer method of electing board members.

Your Committee on Conference has amended this bill by deleting the provision limiting the application of this bill to associations conducting annual meetings in 2050 and thereafter.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 204, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 204, H.D. 1, S.D. 1, C.D. 1.