HB581.DOC

SECTION 1. Section 421J-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Association documents, the most current financial statement of the association, and the minutes of the most recent meeting of the board of directors [(], other than minutes of executive sessions[)], shall be made available for examination by any member [~~at no cost, on twenty-four-hour loan or during reasonable hours.~~]:

(1) During normal business hours or on twenty-four‑hour loan subject to reasonable terms of access;

(2) In hard copy form for a reasonable fee that shall not exceed the greater of twenty cents per page or the rate charged by the Internal Revenue Service for copying charges for Freedom of Information Act requests by commercial requesters; and

(3) In electronic form through a website maintained by the property management company and accessible to the public at no charge."

SECTION 2. Section 514A-84.5, Hawaii Revised Statutes, is amended to read as follows:

"§514A‑84.5 Availability of project documents. (a) An accurate copy of the declaration of condominium property regime, the bylaws of the association of apartment owners, the house rules, if any, the master lease, if any, a sample original conveyance document, all public reports and any amendments thereto, and the annual operating budget shall be kept at the managing agent's office.

(b) The managing agent shall [~~provide copies of those~~] make the documents listed in subsection (a) available to owners, prospective purchasers, and their [~~prospective~~] respective agents [~~during normal business hours, upon payment to the managing agent of a reasonable charge to defray any administrative or duplicating costs.~~]:

(1) For review at the managing agent's office during normal business hours and subject to reasonable terms of access;

(3) Electronically through a website maintained by the property management company and accessible to the public at no charge.

(c) [~~In the event that~~] If the project is not managed by a managing agent, the foregoing requirements shall be undertaken by [a] the person or entity[~~, if any, employed by the association of apartment owners,~~] to whom the association of apartment owners has delegated this function [~~is delegated~~]."

SECTION 3. Section 514B-152, Hawaii Revised Statutes, is amended to read as follows:

"[[]§514B-152[]] Association records; generally. (a) The association shall keep financial and other records sufficiently detailed to enable the association to comply with requests for information and disclosures related to resale of units. Except as otherwise provided by law, all financial and other records shall be made reasonably available for examination by any unit owner and the owner's authorized agents. Association records shall be stored on the island on which the association's project is located; provided that if original records, including but not limited to invoices, are required to be sent off-island, copies of the records shall be maintained on the island on which the association's project is located.

(b) The association shall make the financial and other records of the association available to owners and their respective agents:

(1) For review during normal business hours and subject to reasonable terms of access at a location designated by the association on the island on which the association's property is located;

(3) In electronic form through a website maintained by the association and accessible to the public at no charge."

SECTION 4. Section 514B-153, Hawaii Revised Statutes, is amended to read as follows:

"§514B-153 Association records; records to be maintained. (a) An accurate copy of the declaration, bylaws, house rules, if any, master lease, if any, a sample original conveyance document, all public reports and any amendments thereto, shall be kept at the managing agent's office. The managing agent shall make the documents listed in this subsection available to owners and their respective agents:

(1) For review at the managing agent's office during normal business hours and subject to reasonable terms of access;

(3) In electronic form through a website maintained by the property management company and accessible to the public at no charge.

(b) The managing agent or board shall keep, in chronological order, detailed, accurate records [~~in chronological order,~~] of the receipts and expenditures affecting the common elements, specifying and itemizing the maintenance and repair expenses of the common elements and any other expenses incurred. The managing agent or board shall also keep monthly statements indicating the total current delinquent dollar amount of any unpaid assessments for common expenses.

(c) Subject to section 514B‑152, all records and the vouchers authorizing the payments and statements shall be kept and maintained at the address of the project, or elsewhere within the State as determined by the board.

(d) The developer or affiliate of the developer, board, and managing agent shall ensure that there is a written contract for managing the operation of the property, expressing the agreements of all parties, including but not limited to financial and accounting obligations, services provided, and any compensation arrangements, including any subsequent amendments. Copies of the executed contract and any amendments shall be provided to all parties to the contract.

(e) The managing agent, resident manager, or board shall keep an accurate and current list of members of the association and their current addresses, and the names and addresses of the vendees under an agreement of sale, if any. The list shall be maintained at a place designated by the board, and a copy shall be available, at cost, to any member of the association as provided in the declaration or bylaws or rules and regulations or, in any case, to any member who furnishes to the managing agent [or], resident manager, or the board a duly executed and acknowledged affidavit stating that the list:

(1) Will be used by the owner personally and only for the purpose of soliciting votes or proxies, or for providing information to other owners with respect to association matters; and

(2) Shall not be used by the owner or furnished to anyone else for any other purpose.

A board may prohibit commercial solicitations.

(f) The managing agent or resident manager shall not use or distribute any membership list, including for commercial or political purposes, without the prior written consent of the board.

(g) All membership lists are the property of the association and any membership lists contained in the managing agent's or resident manager's records are subject to subsections (e) and (f), and this subsection. A managing agent, resident manager, or board may not use the information contained in the lists to create any separate list for the purpose of evading this section.

(h) Subsections (f) and (g) shall not apply to any time share plan regulated under chapter 514E.

(i) If a project is not managed by a managing agent, the foregoing requirements shall be undertaken by the person or entity to whom the association of apartment owners has delegated this function."

SECTION 5. Section 514B-154, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The managing agent shall provide copies of association records maintained pursuant to this section [~~and sections 514B‑152 and 514B‑153~~] to owners, prospective purchasers, and their [~~prospective~~] respective agents [~~during normal business hours, upon payment to the managing agent of a reasonable charge to defray any administrative or duplicating costs.~~]:

(1) For review at the managing agent's office during normal business hours and subject to reasonable terms of access; and

If the project is not managed by a managing agent, the foregoing requirements shall be undertaken by [a] the person or entity, if any, employed by the association, to whom this function is delegated."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2011.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	581
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII