HOUSE OF REPRESENTATIVES H.B. NO. 630 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO COMMON INTEREST COMMUNITIES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 630
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
HOUSE OF REPRESENTATIVES
H.B. NO.
630
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO COMMON INTEREST COMMUNITIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to: (1) Provide for the administrative dissolution of any planned community association or condominium association in existence as of July 1, 2027; (2) Provide to the department of commerce and consumer affairs the powers and responsibilities currently given to planned community associations and condominium associations under chapters 421J and 514B, Hawaii Revised Statutes, and each planned community's or condominium's bylaws and other governing documents; and (3) Require the department of commerce and consumer affairs to submit to the legislature a report and proposed legislation addressing the department's future governance of planned communities and condominiums. SECTION 2. As used in this Act: "Condominium" has the same meaning as in section 514B-3, Hawaii Revised Statutes. "Condominium association" has the same meaning as "association" under section 514B-3, Hawaii Revised Statutes. "Department" means the department of commerce and consumer affairs. "Director" means the director of commerce and consumer affairs. "Planned community" has the same meaning as in section 421J-2, Hawaii Revised Statutes. "Planned community association" has the same meaning as "association" under section 421J-2, Hawaii Revised Statutes. SECTION 3. (a) A planned community association under chapter 421J, Hawaii Revised Statutes, or a condominium association under chapter 514B, Hawaii Revised Statutes, that exists as of July 1, 2027, shall be deemed to be administratively dissolved by the director of commerce and consumer affairs as of that date. (b) No new planned community association or condominium association shall be incorporated or otherwise formed after June 30, 2027. Any articles of incorporation or other document purporting to establish a new planned community association or new condominium association after June 30, 2027, shall be void. (c) Beginning January 1, 2027, the department shall administer each planned community and condominium under the bylaws, covenants, association documents, rules, or other documents governing the use of common areas, architectural controls, maintenance of units, restrictions on the use of units, and payments of money as a regular assessment or otherwise in connection with the provisions, maintenance, or services for the benefit of some or all of the units, the owners, or occupants of the units or the common areas, as well as any amendments made to the foregoing documents. To perform these functions, the department shall have all powers and responsibilities provided to planned community associations and condominium associations under chapters 421J and 514B, Hawaii Revised Statutes, respectively, and under the bylaws and covenants, association documents, rules, or other documents governing the planned community or condominium. (d) Beginning July 1, 2027, all rights, powers, and functions of each existing planned community association or condominium association shall be transferred to the department. Any employee of a planned community or condominium association may be transferred and may continue in the employee's position, except as determined by the department; provided that the employee shall not be subject to chapters 76 and 89, Hawaii Revised Statutes, and the director of commerce and consumer affairs may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes. The powers provided to the department under this subsection shall continue until the enactment of laws that provide for the long-term administration of planned communities and condominiums by the department. (e) All records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by an planned community association or condominium association relating to the planned community or condominium shall be transferred to the department. (f) A planned community association or condominium association that is administratively dissolved pursuant to subsection (a) shall continue its corporate existence but shall not carry on any business except that necessary to wind up and liquidate its affairs under part XIII of chapter 414D, Hawaii Revised Statutes, or other applicable law. SECTION 4. (a) No later than twenty days prior to the convening of the regular session of 2026, the department shall submit a report to the legislature that makes recommendations for the department's governance of planned communities and condominiums, including: (1) A plan for the governance of existing planned communities and condominiums; (2) The department's estimated budget requirements to administer planned communities and condominiums under the paragraph (1); (3) Recommendations to address any potential legal issues, including claims under the takings clauses of the United States Constitution and Hawaii state constitution; and (4) Any other findings and recommendations. (b) The report shall include proposed legislation that: (1) Creates a statutory framework for the department's governance of existing planned communities and condominiums and the creation of new planned communities and condominiums; (2) Appropriates funds necessary to fund the department's operations under paragraph (1); and (3) Addresses potential legal issues, including claims under the takings clauses of the United States Constitution or Hawaii state constitution. SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. SECTION 6. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
SECTION 1. The purpose of this Act is to:
(1) Provide for the administrative dissolution of any planned community association or condominium association in existence as of July 1, 2027;
(2) Provide to the department of commerce and consumer affairs the powers and responsibilities currently given to planned community associations and condominium associations under chapters 421J and 514B, Hawaii Revised Statutes, and each planned community's or condominium's bylaws and other governing documents; and
(3) Require the department of commerce and consumer affairs to submit to the legislature a report and proposed legislation addressing the department's future governance of planned communities and condominiums.
SECTION 2. As used in this Act:
"Condominium" has the same meaning as in section 514B-3, Hawaii Revised Statutes.
"Condominium association" has the same meaning as "association" under section 514B-3, Hawaii Revised Statutes.
"Department" means the department of commerce and consumer affairs.
"Director" means the director of commerce and consumer affairs.
"Planned community" has the same meaning as in section 421J-2, Hawaii Revised Statutes.
"Planned community association" has the same meaning as "association" under section 421J-2, Hawaii Revised Statutes.
SECTION 3. (a) A planned community association under chapter 421J, Hawaii Revised Statutes, or a condominium association under chapter 514B, Hawaii Revised Statutes, that exists as of July 1, 2027, shall be deemed to be administratively dissolved by the director of commerce and consumer affairs as of that date.
(b) No new planned community association or condominium association shall be incorporated or otherwise formed after June 30, 2027. Any articles of incorporation or other document purporting to establish a new planned community association or new condominium association after June 30, 2027, shall be void.
(c) Beginning January 1, 2027, the department shall administer each planned community and condominium under the bylaws, covenants, association documents, rules, or other documents governing the use of common areas, architectural controls, maintenance of units, restrictions on the use of units, and payments of money as a regular assessment or otherwise in connection with the provisions, maintenance, or services for the benefit of some or all of the units, the owners, or occupants of the units or the common areas, as well as any amendments made to the foregoing documents. To perform these functions, the department shall have all powers and responsibilities provided to planned community associations and condominium associations under chapters 421J and 514B, Hawaii Revised Statutes, respectively, and under the bylaws and covenants, association documents, rules, or other documents governing the planned community or condominium.
(d) Beginning July 1, 2027, all rights, powers, and functions of each existing planned community association or condominium association shall be transferred to the department. Any employee of a planned community or condominium association may be transferred and may continue in the employee's position, except as determined by the department; provided that the employee shall not be subject to chapters 76 and 89, Hawaii Revised Statutes, and the director of commerce and consumer affairs may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes. The powers provided to the department under this subsection shall continue until the enactment of laws that provide for the long-term administration of planned communities and condominiums by the department.
(e) All records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by an planned community association or condominium association relating to the planned community or condominium shall be transferred to the department.
(f) A planned community association or condominium association that is administratively dissolved pursuant to subsection (a) shall continue its corporate existence but shall not carry on any business except that necessary to wind up and liquidate its affairs under part XIII of chapter 414D, Hawaii Revised Statutes, or other applicable law.
SECTION 4. (a) No later than twenty days prior to the convening of the regular session of 2026, the department shall submit a report to the legislature that makes recommendations for the department's governance of planned communities and condominiums, including:
(1) A plan for the governance of existing planned communities and condominiums;
(2) The department's estimated budget requirements to administer planned communities and condominiums under the paragraph (1);
(3) Recommendations to address any potential legal issues, including claims under the takings clauses of the United States Constitution and Hawaii state constitution; and
(4) Any other findings and recommendations.
(b) The report shall include proposed legislation that:
(1) Creates a statutory framework for the department's governance of existing planned communities and condominiums and the creation of new planned communities and condominiums;
(2) Appropriates funds necessary to fund the department's operations under paragraph (1); and
(3) Addresses potential legal issues, including claims under the takings clauses of the United States Constitution or Hawaii state constitution.
SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 6. This Act shall take effect upon its approval.
INTRODUCED BY: _____________________________
INTRODUCED BY:
_____________________________
Report Title: DCCA; Condominiums; Planned Communities; Dissolution; Governance; Report to Legislature Description: Provides for the administrative dissolution of any planned community association or condominium association in existence as of 7/1/2027. Provides the Department of Commerce and Consumer Affairs the powers currently provided to planned community associations and condominium associations under chapters 421J and 514B, HRS, and each planned community's or condominium's bylaws and other governing documents. Requires the Department of Commerce and Consumer Affairs to submit a report and proposed legislation to the Legislature with recommendations to administer planned communities and condominiums. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
DCCA; Condominiums; Planned Communities; Dissolution; Governance; Report to Legislature
Description:
Provides for the administrative dissolution of any planned community association or condominium association in existence as of 7/1/2027. Provides the Department of Commerce and Consumer Affairs the powers currently provided to planned community associations and condominium associations under chapters 421J and 514B, HRS, and each planned community's or condominium's bylaws and other governing documents. Requires the Department of Commerce and Consumer Affairs to submit a report and proposed legislation to the Legislature with recommendations to administer planned communities and condominiums.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.