Hawaii 2023 Regular Session

Hawaii Senate Bill SB886 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 886 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to condominiums. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 886
4	4	THIRTY-SECOND LEGISLATURE, 2023
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	886
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13	13	THIRTY-SECOND LEGISLATURE, 2023
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to condominiums.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. Section 514B-106, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows: "(f) At any regular or special meeting of the association, any member of the board may be removed and successors shall be elected for the remainder of the term to fill the vacancies thus created. The removal and replacement shall be by a vote of a majority of the unit owners and, otherwise, in accordance with all applicable requirements and procedures in the bylaws for the removal and replacement of directors and, if removal and replacement is to occur at a special meeting, section [514B‑121(c).] 514B-121(d)." SECTION 2. Section 514B-110, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows: "(e) Election of the new board in accordance with an amendment adopted pursuant to this section shall be held at the next regular meeting of the association or at a meeting called in accordance with section [514B‑121(c)] 514B-121(d) for this purpose." SECTION 3. Section 514B-121, Hawaii Revised Statutes, is amended to read as follows: "§514B-121 Association meetings. (a) A meeting of the association shall be held at least once each year. (b) All association meetings shall be conducted in accordance with the most recent edition of Robert's Rules of Order Newly Revised. [(b)] (c) Notwithstanding any other provision of this chapter, [except as provided in subsection (e), or the declaration or bylaws of a condominium to the contrary,] at any association meeting conducted in person at a physical location, the board may direct the use of an electronic voting device regardless of whether a secret ballot is used or required. [Except as provided in subsection (e), the] The use shall be subject to the following: (1) The electronic voting device and all associated equipment shall be isolated from any connection to an external network, including the Internet, or shall use a form of encryption comparable to that used for secured internet web browsers; (2) The board shall establish reasonable procedures to provide for the secrecy and integrity of the unit owners' votes, including but not limited to procedures that ensure the availability of a printed audit trail containing: (A) The reference number or internet address of the electronic voting device; (B) Each common interest voted; and (C) The vote that was tabulated; (3) A copy of the printed audit trail shall be available to owners after the meeting in the same manner provided by sections 514B-154 and 514B-154.5; and (4) A copy of the procedures established pursuant to paragraph (2) shall be available at no charge to any owner and a copy shall be available at any meeting at which the association uses an electronic voting device. [If any conflict arises between this subsection and subsection (e), subsection (e) shall control.] [(c)] (d) Special meetings of the association may be called by the president, a majority of the board, or by a petition to the secretary or managing agent signed and dated by not less than twenty-five per cent of the unit owners as shown in the association's record of ownership; provided that if the secretary or managing agent fails to send out the notices for the special meeting within fourteen days of receipt of the petition, the petitioners shall have the authority to set the time, date, and place for the special meeting and to send out the notices and proxies for the special meeting at the association's expense in accordance with the requirements of the bylaws and of this part; provided further that a special meeting based upon a petition to the secretary or managing agent shall be set no later than sixty days from receipt of the petition. The petition shall be valid only if submitted within one hundred twenty days of the earliest signature. [(d)] (e) Not less than fourteen days in advance of any meeting, the secretary or other officer specified in the bylaws shall cause notice to be: (1) Hand-delivered; (2) Sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner; or (3) At the option of the unit owner, expressed in writing, by electronic mail to the electronic mailing address designated in writing by the unit owner. The notice of any meeting must state the date, time, and place of the meeting and the items on the agenda, including the general nature and rationale of any proposed amendment to the declaration or bylaws, and any proposal to remove a member of the board; provided that this subsection shall not preclude any unit owner from proposing an amendment to the declaration or bylaws or to remove a member of the board at any annual association meeting. [(e) All association meetings shall be conducted in accordance with the most recent edition of Robert's Rules of Order Newly Revised.] (f) Notwithstanding any provision to the contrary in the association's declaration or bylaws [or in subsection (b)], electronic meetings and electronic, machine, or mail voting may be authorized by the board in its sole discretion: (1) During any period in which a state of emergency or local state of emergency, declared pursuant to chapter 127A, is in effect in the county in which the condominium is located; (2) For any association meeting for which notice was given while a state of emergency or local state of emergency, declared pursuant to chapter 127A, was in effect for the county in which the condominium is located but is no longer in effect as of the date of the meeting; provided that the meeting is held within sixty days of the date the notice was first given; [(3) For any electronic, machine, or mail voting for which notice of voting has been sent; provided that the electronic, machine, or mail voting deadline is within sixty days of the date the notice was first sent; (4) Whenever approved in advance by:] (3) When approved not less than three months nor more than eighteen months prior to the electronic meeting and electronic, machine, or mail voting by: (A) Written consent of a majority of unit owners; or (B) Majority vote at an association meeting; or [(5)] (4) Whenever otherwise authorized in an association's declaration or bylaws. For any electronic, machine, or mail voting, the voting deadline shall be within sixty days of the date the notice was first sent. The association shall implement reasonable measures to verify that each person permitted to vote is a member of the association or proxy of a member. As used in this subsection, "mail voting" includes sending or receiving written ballots via mail, courier, or electronic transmission; provided that the transmission is a complete reproduction of the original. [(f)] (g) All association meetings shall be held at the address of the condominium or elsewhere within the State as determined by the board; provided that in the event of a natural disaster, such as a hurricane, an association meeting may be held outside the State." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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49	49	SECTION 1. Section 514B-106, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
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51	51	"(f) At any regular or special meeting of the association, any member of the board may be removed and successors shall be elected for the remainder of the term to fill the vacancies thus created. The removal and replacement shall be by a vote of a majority of the unit owners and, otherwise, in accordance with all applicable requirements and procedures in the bylaws for the removal and replacement of directors and, if removal and replacement is to occur at a special meeting, section [514B‑121(c).] 514B-121(d)."
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53	53	SECTION 2. Section 514B-110, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
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55	55	"(e) Election of the new board in accordance with an amendment adopted pursuant to this section shall be held at the next regular meeting of the association or at a meeting called in accordance with section [514B‑121(c)] 514B-121(d) for this purpose."
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57	57	SECTION 3. Section 514B-121, Hawaii Revised Statutes, is amended to read as follows:
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59	59	"§514B-121 Association meetings. (a) A meeting of the association shall be held at least once each year.
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61	61	(b) All association meetings shall be conducted in accordance with the most recent edition of Robert's Rules of Order Newly Revised.
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63	63	[(b)] (c) Notwithstanding any other provision of this chapter, [except as provided in subsection (e), or the declaration or bylaws of a condominium to the contrary,] at any association meeting conducted in person at a physical location, the board may direct the use of an electronic voting device regardless of whether a secret ballot is used or required. [Except as provided in subsection (e), the] The use shall be subject to the following:
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65	65	(1) The electronic voting device and all associated equipment shall be isolated from any connection to an external network, including the Internet, or shall use a form of encryption comparable to that used for secured internet web browsers;
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67	67	(2) The board shall establish reasonable procedures to provide for the secrecy and integrity of the unit owners' votes, including but not limited to procedures that ensure the availability of a printed audit trail containing:
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69	69	(A) The reference number or internet address of the electronic voting device;
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71	71	(B) Each common interest voted; and
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73	73	(C) The vote that was tabulated;
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75	75	(3) A copy of the printed audit trail shall be available to owners after the meeting in the same manner provided by sections 514B-154 and 514B-154.5; and
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77	77	(4) A copy of the procedures established pursuant to paragraph (2) shall be available at no charge to any owner and a copy shall be available at any meeting at which the association uses an electronic voting device.
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79	79	[If any conflict arises between this subsection and subsection (e), subsection (e) shall control.]
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81	81	[(c)] (d) Special meetings of the association may be called by the president, a majority of the board, or by a petition to the secretary or managing agent signed and dated by not less than twenty-five per cent of the unit owners as shown in the association's record of ownership; provided that if the secretary or managing agent fails to send out the notices for the special meeting within fourteen days of receipt of the petition, the petitioners shall have the authority to set the time, date, and place for the special meeting and to send out the notices and proxies for the special meeting at the association's expense in accordance with the requirements of the bylaws and of this part; provided further that a special meeting based upon a petition to the secretary or managing agent shall be set no later than sixty days from receipt of the petition. The petition shall be valid only if submitted within one hundred twenty days of the earliest signature.
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83	83	[(d)] (e) Not less than fourteen days in advance of any meeting, the secretary or other officer specified in the bylaws shall cause notice to be:
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85	85	(1) Hand-delivered;
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87	87	(2) Sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner; or
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89	89	(3) At the option of the unit owner, expressed in writing, by electronic mail to the electronic mailing address designated in writing by the unit owner.
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91	91	The notice of any meeting must state the date, time, and place of the meeting and the items on the agenda, including the general nature and rationale of any proposed amendment to the declaration or bylaws, and any proposal to remove a member of the board; provided that this subsection shall not preclude any unit owner from proposing an amendment to the declaration or bylaws or to remove a member of the board at any annual association meeting.
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93	93	[(e) All association meetings shall be conducted in accordance with the most recent edition of Robert's Rules of Order Newly Revised.]
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95	95	(f) Notwithstanding any provision to the contrary in the association's declaration or bylaws [or in subsection (b)], electronic meetings and electronic, machine, or mail voting may be authorized by the board in its sole discretion:
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97	97	(1) During any period in which a state of emergency or local state of emergency, declared pursuant to chapter 127A, is in effect in the county in which the condominium is located;
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99	99	(2) For any association meeting for which notice was given while a state of emergency or local state of emergency, declared pursuant to chapter 127A, was in effect for the county in which the condominium is located but is no longer in effect as of the date of the meeting; provided that the meeting is held within sixty days of the date the notice was first given;
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101	101	[(3) For any electronic, machine, or mail voting for which notice of voting has been sent; provided that the electronic, machine, or mail voting deadline is within sixty days of the date the notice was first sent;
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103	103	(4) Whenever approved in advance by:]
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105	105	(3) When approved not less than three months nor more than eighteen months prior to the electronic meeting and electronic, machine, or mail voting by:
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107	107	(A) Written consent of a majority of unit owners; or
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109	109	(B) Majority vote at an association meeting; or
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111	111	[(5)] (4) Whenever otherwise authorized in an association's declaration or bylaws.
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113	113	For any electronic, machine, or mail voting, the voting deadline shall be within sixty days of the date the notice was first sent. The association shall implement reasonable measures to verify that each person permitted to vote is a member of the association or proxy of a member.
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115	115	As used in this subsection, "mail voting" includes sending or receiving written ballots via mail, courier, or electronic transmission; provided that the transmission is a complete reproduction of the original.
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117	117	[(f)] (g) All association meetings shall be held at the address of the condominium or elsewhere within the State as determined by the board; provided that in the event of a natural disaster, such as a hurricane, an association meeting may be held outside the State."
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119	119	SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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121	121	SECTION 5. This Act shall take effect upon its approval.
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125	125	INTRODUCED BY: _____________________________
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155	155	Report Title: Condominium Association Meetings; Electronic Voting; Mail Voting; Machine Voting Description: Specifies the procedure for condominium association meetings conducted in person and electronically. Clarifies the procedure for electronic, machine, or mail voting. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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161	161	Report Title:
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163	163	Condominium Association Meetings; Electronic Voting; Mail Voting; Machine Voting
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167	167	Description:
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169	169	Specifies the procedure for condominium association meetings conducted in person and electronically. Clarifies the procedure for electronic, machine, or mail voting.
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177	177	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.