STAND. COM. REP. NO. 811

Honolulu, Hawaii

, 2025

RE: H.B. No. 850

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 850 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Clarify a condominium association board's authority with respect to calling electronic meetings, electronic voting, and mail voting;

(2) Clarify that, in condominium association elections, cumulative voting rights apply to all candidates regardless of whether they are nominated; and

(3) Clarify that individual votes are used in cumulative voting.

Your Committee received testimony in support of this measure from the Hawaii Legislative Action Committee of the Community Associations Institute; Palehua Townhouse Association; Hawaiʻi State Association of Parliamentarians; AOAO Lakeview Sands; Hawaii Council of Community Associations; Hawaiian Properties, Ltd.; Hawaiiana Management Company, Ltd.; and numerous individuals. Your Committee received testimony in opposition to this measure from Honolulu Tower and three individuals. Your Committee received comments on this measure from one individual.

Your Committee finds that the law relating to condominium association electronic meetings, electronic voting, and mail voting needs further clarification and guidance. While condominium association governing documents may provide for other means of voting, existing law is silent. This measure provides added flexibility in voting at association meetings by explicitly authorizing electronic voting for in-person meetings.

Your Committee further find that existing law provides for cumulative voting only for persons nominated in elections for board member and officer positions for condominium associations. This does not account for write-in candidates. This measure expands the authorization for cumulative voting to include write-in candidates.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 850, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 850, 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 & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair