HOUSE OF REPRESENTATIVES	H.B. NO.	1218
THIRTY-FIRST LEGISLATURE, 2021		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HOME-BASED BUSINESSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 421J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§421J-    Home-based businesses. (a) Notwithstanding any law to the contrary, no owner shall be prevented by anything in the association documents from establishing a home-based business on the premises of any unit of the owner. Any provision in the association documents or any lease or contract contrary to the intent of this section shall be void and unenforceable.

(b) Every association may adopt bylaws or rules that reasonably regulate the establishment of a home-based business on the premises of any unit within the planned community; provided that those rules do not prohibit the establishment of home-based businesses altogether.

(c) An owner shall not operate a home-based business if:

(1) The nature of the home-based business unduly requires the use of common areas;

(2) The home-based business creates an undue burden on neighbors, including increased vehicular and pedestrian traffic and decreased parking; or

(3) The home-based business violates federal, state, or county laws, rules, or ordinances regarding the creation, storage, or use of hazardous materials on site.

(d) For purposes of this section, "home-based business" means any enterprise whose primary office is located in the owner's personal residence."

SECTION 2. Chapter 514B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§514B-    Home-based businesses. (a) Notwithstanding any law to the contrary, no unit owner shall be prevented by anything in an association's governing documents from establishing a home-based business on the premises of any unit of the unit owner. Any provision in the governing documents or any lease or contract contrary to the intent of this section shall be void and unenforceable.

(b) Every association may adopt or amend house rules or bylaws that reasonably regulate the establishment of a home-based business on the premises of any unit within the condominium; provided that those rules do not prohibit the establishment of home-based businesses altogether.

(c) A unit owner shall not operate a home-based business if:

(1) The nature of the home-based business unduly requires the use of common elements;

(2) The home-based business creates an undue burden on neighbors, including increased vehicular and pedestrian traffic and decreased parking; or

(3) The home-based business violates federal, state, or county laws, rules, or ordinances regarding the creation, storage, or use of hazardous materials on site.

(d) For purposes of this section, "home-based business" means any enterprise whose primary office is located in the unit owner's personal residence."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.

Report Title:

Home-based Businesses; Planned Community Associations; Condominium Associations

Description:

Prohibits planned community associations and condominium associations from banning home-based businesses, with certain exceptions. Effective 7/1/2050. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.