STAND. COM. REP. NO. 1261

Honolulu, Hawaii

RE:    H.B. No. 192

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 192, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOMEOWNERS' ASSOCIATIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to expand the definition of "association" under the planned community association law to include certain homeowners' associations.

     Your Committee received testimony in support of this measure from Associa.

     Your Committee finds that certain subdivisions in the State may not fit into the existing definition of a planned community "association", as used in the laws regarding homeowners' associations.  The homeowners' associations in these subdivisions are therefore unregulated and lack access to the cost-effective dispute resolution mechanisms provided for planned community associations.  This measure expands the definition of "association" under the planned community association law, which will enable these subdivisions to be regulated and have access to existing mediation processes.

     Your Committee further finds that existing law on voting pursuant to a proxy at a meeting of a planned community association specifies that a standard proxy form must contain boxes for a member of the association to check and indicate how a proxy is given.  Proxy forms may sometimes be returned to an association's secretary or managing agent with more than one box checked, or with nothing marked on the proxy form, which may lead to confusion over how the proxy should be counted.  Your Committee concludes that amendments to this measure are necessary to clarify how such proxies should be counted.

     Accordingly, your Committee has amended this measure by:

     (1)  Specifying that when a standard proxy form is authorized by an association, and the proxy is returned with no box or more than one box checked that relates to how an owner may indicate a proxy is given, the proxy shall be counted for quorum purposes only;

     (2)  Updating the purpose section accordingly; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 192, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 192, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair