Bill Text: HI SB1499 | 2011 | Regular Session | Introduced
Bill Title: Condominiums; Leasehold; Reporting Requirements
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2011-03-10 - (H) Referred to HSG, CPC, referral sheet 33 [SB1499 Detail]
Download: Hawaii-2011-SB1499-Introduced.html
|
THE SENATE |
S.B. NO. |
1499 |
|
TWENTY-SIXTH LEGISLATURE, 2011 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to condominiums.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 514A-95.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Each condominium project or association of apartment owners having more than five apartments shall:
(1) Secure a fidelity bond in an amount equal to $500 multiplied by the number of apartments, to cover all officers, directors, employees, and managing agents of the association of apartment owners who handle, control, or have custody of the funds of the association of apartment owners; provided that the amount of the fidelity bond required by this paragraph shall not be less than $20,000 nor greater than $100,000. The fidelity bond shall protect the association of apartment owners against fraudulent or dishonest acts by persons, including any managing agent, who have access to the funds of the association of apartment owners. An association of apartment owners shall act promptly and diligently to recover from the fidelity bond required by this section. An association of apartment owners that is unable to obtain a fidelity bond may seek approval for an exemption or a bond alternative from the commission. The commission shall adopt rules establishing the conditions and terms for which it may grant an exemption or a bond alternative, or permit deductibles. Failure to obtain or maintain a fidelity bond in compliance with this chapter and the rules adopted pursuant thereto, including failure to provide current evidence of the fidelity bond coverage in a timely manner to the commission, shall result in non-registration or the automatic termination of the registration, unless an approved exemption or a bond alternative is presently maintained. Current evidence of a fidelity bond includes a certification statement from an insurance company registered with the department of commerce and consumer affairs certifying that the bond is in effect and meets the requirement of this section and the rules adopted by the commission;
(2) Register with the commission through approval of a completed registration application, payment of fees, and submission of any additional information set forth by the commission. Beginning June 30, 1997, the registration shall be for a biennial period with termination on June 30 of an odd-numbered year. The commission shall prescribe a deadline date prior to the termination date for the submission of a completed reregistration application, payment of fees, and any additional information set forth by the commission. Any condominium project or association of apartment owners that has not met the submission requirements by the deadline date shall be considered a new applicant for registration and subject to initial registration requirements. Any new condominium project or association of apartment owners shall register within thirty days of the association of apartment owners' first meeting. If the association of apartment owners has not held its first meeting within one year after the recordation of the purchase of the first apartment in the condominium project, the developer or developer's affiliate or the managing agent shall register on behalf of the unorganized association of apartment owners and shall comply with this section, except the fidelity bond requirement for association of apartment owners. The public information required to be submitted on any completed application form shall include but not be limited to evidence of and information on fidelity bond coverage, names and positions of the officers of the association, the name of the association of apartment owners' managing agent, if any, the street and the postal address of the condominium, and the name and current mailing address of a designated officer of the association of apartment owners where the officer can be contacted directly;
(3) Submit data on the number of leasehold units in the condominium project or association of apartment owners and the appraised value of each of the leasehold units;
[(3)] (4)
Pay a nonrefundable application fee and, upon approval, an initial registration
fee or a reregistration fee, and the condominium education trust fund fee
pursuant to section 514B-72 and rules adopted by the director of commerce and
consumer affairs pursuant to chapter 91;
[(4)] (5)
Register or reregister and pay the required fees by the due date. Failure to
register or reregister or to pay the required fees by the due date shall result
in the assessment of a penalty equal to the amount of the registration or
reregistration fee; and
[(5)] (6)
Report immediately in writing to the commission any changes to the information
contained on the registration or reregistration application, the evidence of
the fidelity bond, or any other documents set forth by the commission. Failure
to do so may result in termination of registration and subject the condominium
project or the association of apartment owners to initial registration
requirements."
SECTION 2. Section 514B-103, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Each project or association having more than five units shall:
(1) Secure and maintain a fidelity bond in an amount for the coverage and terms as required by section 514B‑143(a)(3). An association shall act promptly and diligently to recover from the fidelity bond required by this section. An association that is unable to obtain a fidelity bond may seek approval for an exemption, a deductible, or a bond alternative from the commission. Current evidence of a fidelity bond includes a certification statement from an insurance company registered with the department of commerce and consumer affairs certifying that the bond is in effect and meets the requirement of this section and the rules adopted by the commission;
(2) Register
with the commission through approval of a completed registration application,
payment of fees, and submission of any other additional information set forth
by the commission. The registration shall be for a biennial period with
termination on June 30 of each odd-numbered year. The commission shall
prescribe a deadline date prior to the termination date for the submission of a
completed reregistration application, payment of fees, and any other additional
information set forth by the commission. Any project or association that has
not met the submission requirements by the deadline date shall be considered a
new applicant for registration and be subject to initial registration
requirements. Any new project or association shall register within thirty days
of the association's first meeting. If the association has not held its first
meeting and it is at least one year after the recordation of the purchase of
the first unit in the project, the developer or developer's affiliate or the
managing agent shall register on behalf of the association and shall comply
with this section, except for the fidelity bond requirement for associations
required by section [[]514B-143(a)(3)[]]. The public information
required to be submitted on any completed application form shall include but
not be limited to evidence of and information on fidelity bond coverage, names
and positions of the officers of the association, the name of the association's
managing agent, if any, the street and the postal address of the condominium,
and the name and current mailing address of a designated officer of the
association where the officer can be contacted directly;
(3) Submit data on the number of leasehold units in each project or association and the appraised value of each of the leasehold units;
[(3)] (4)
Pay a nonrefundable application fee and, upon approval, an initial registration
fee, a reregistration fee upon reregistration and the condominium education
trust fund fee, as provided in rules adopted by the director of commerce and
consumer affairs pursuant to chapter 91;
[(4)] (5)
Register or reregister and pay the required fees by the due date. Failure to
register or reregister or pay the required fees by the due date shall result in
the assessment of a penalty equal to the amount of the registration or
reregistration fee; and
[(5)] (6)
Report promptly in writing to the commission any changes to the information
contained on the registration or reregistration application or any other
documents required by the commission. Failure to do so may result in
termination of registration and subject the project or the association to
initial registration requirements."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Condominiums; Leasehold; Reporting Requirements
Description:
Requires condominium projects or associations of apartment owners to submit with their biennial registrations with the real estate commission data on the number of leasehold units in a project or association and their appraised value.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
