STAND. COM. REP. NO. 2730

Honolulu, Hawaii

RE: S.B. No. 2852

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2852 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require condominium associations to allow members or their proxies to vote by mail and attend and cast votes in association meetings through the Internet, teleconference, or other electronic transmission technology; and

(2) Ensure the provision of copies of printed audit trails.

Your Committee received testimony in support of this measure from the Hawaii Council of Community Associations, Hawai‘i Public Health Institute, Hui ‘Oia‘i‘o, and thirteen individuals. Your Committee received testimony in opposition to this measure from the Community Associations Institute; Country Club Village AOAO; Honolulu Tower AOAO; Hawai‘i State Association of Parliamentarians Legislative Committee; Country Club Village Phase 2 AOAO; Law Offices of Mark K. McKeller, LLLC; Kipuka at Hoakalei AOUO; and eight individuals. Your Committee received comments on this measure from two individuals.

Your Committee finds that a certain percentage of members are required to vote in the affirmative for an association to adopt or amend its rules. If a member is not present, an absent vote will translate to a "no" vote. Due to a countless number of reasons, it can be a challenge for two-thirds of the members of an association to physically be present to vote at a meeting to adopt certain rules or amendments to rules. With the progression of technologies and increased abilities to conduct business remotely, this measure will remove outdated barriers and increase opportunities for member participation in the voting process.

Your Committee has amended this measure by:

(1) Clarifying that members of the association or proxies of members shall be allowed to vote by mail and participate in any association meeting by means of the Internet, teleconference, or other electronic transmission technology, if authorized by the board of directors in its sole discretion;

(2) Inserting language that provides a member of the association or proxy of a member participating in a meeting by means of Internet, teleconference, or other electronic transmission technology shall be deemed to be present at the meeting, and requiring the association to implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting is a member of the association or proxy of a member; and

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

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2852, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2852, S.D. 1, and be placed on the calendar for Third Reading.

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

________________________________

ROSALYN H. BAKER, Chair