Bill > HB571

This bill aims to address corruption and improve governance in condominium associations by introducing term limits for board members. Specifically, the bill amends Section 514B-107 of the Hawaii Revised Statutes to restrict board members from serving more than two consecutive terms, with a provision that allows them to return to the board after sitting out one term. The legislation is motivated by concerns about potential corruption in condominium boards, including issues like proxy voting and ballot harvesting that can help incumbent members maintain their positions. The bill defines board members as unit owners, co-owners, trustees, or authorized representatives of legal entities owning a unit, and explicitly prohibits tenants, resident managers, and employees from serving on the board. Additionally, the bill maintains existing rules about conflicts of interest, such as preventing board members who are also employees of the managing agent from participating in discussions about management contracts. The term limits are intended to encourage broader participation in association governance, prevent entrenched leadership, and reduce the potential for misconduct. The bill will take effect on July 1, 2025, giving condominium associations time to prepare for the new term limit requirements.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=571&year=2026