STAND. COM. REP. NO.660
Honolulu, Hawaii
, 2001
RE: H.B. No. 204
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 204 entitled:
"A BILL FOR AN ACT RELATING TO PLANNED COMMUNITY ASSOCIATIONS,"
begs leave to report as follows:
The purpose of this bill is to allow better representation of association members in the election of board members of planned community associations by:
(1) Restricting the use of proxies at annual meetings at which directors are elected to quorum purposes and matters other than the election;
(2) Providing procedures for the election of directors including solicitation of nominations and mailing of ballots and statements of nominees to members of the association; and
(3) Providing that a plurality of votes cast in the election shall determine the winner or winners.
Five concerned citizens testified in support of the bill. One concerned citizen testified in support of the bill with suggested amendments. Another concerned citizen testified in support of the intent of the bill but opposed it as written. The Hawaii Chapter of the Community Associations Institute submitted testimony in opposition to the bill.
As the law currently exists, the board may vote proxies of planned community association members when electing directors. This concentration of votes in the hands of sitting directors minimizes the ability of a member with different views from the board to be elected.
Your Committee finds that legitimate concerns were expressed regarding the fair representation of planned community association members by their board of directors. Your Committee has amended the bill by:
(1) Specifying that proxy voting restrictions apply to annual meetings and not a "specified meeting";
(2) Changing the bill's effective date to January 1, 2050, to allow investigation, discussion, and resolution of the issues raised; and
(3) Making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.
As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 204, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 204, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |
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