STAND. COM. REP. NO.  851-10

 

Honolulu, Hawaii

                , 2010

 

RE:   S.B. No. 2222

      S.D. 1

      H.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2222, S.D. 1, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PLANNED COMMUNITY ASSOCIATIONS,"

 

beg leave to report as follows:

 

     The purpose of this bill is to conform proxy laws for planned community associations to comparable provisions regulating condominium association proxies.

 

     A concerned individual testified in support of this bill.  The Princeville at Hanalei Community Association and Mililani Town Association opposed this measure.  The Hawaii State Association of Parliamentarians, Legislative Action Committee of the Community Associations Institute – Hawaii Chapter, Carter Professional Center, Bayview Estates, Keauhou Estates, Alii Lani, Kona Plaza, Alii Point, and KaMilo at Mauna Lani provided comments.

 

     Your Committees have amended this bill by reverting back to the S.D. 1.  As amended, this bill differs substantively by:

 

(1)    Changing the options that must appear on standard proxy forms authorized by the association to allow owners to grant proxies:

 

(A)    To an association board as a whole so that the vote is to be made on the basis of the preference of the majority of the directors present at the meeting; and

 

(B)    To the directors present at the meeting, with the votes to be shared equally among the directors, rather than among the candidates;

 

          and

 

(2)    Eliminating the provision stating that a parliamentarian is not required to be present at association and board of directors meetings.

 

     Upon further consideration, your Committees have also amended this bill by requiring votes cast by proxy for board of directors elections or reelections to be equally distributed among the candidates.

 

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

 

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2222, S.D. 1, H.D. 1, as amended herein, and recommend that it be referred to the Committee on Finance, in the form attached hereto as S.B. No. 2222, S.D. 1, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

 

 

____________________________ JON RIKI KARAMATSU, Chair		____________________________ ROBERT N. HERKES, Chair