Bill > HB571

This bill addresses governance issues in Hawaii's condominium associations by introducing term limits for board members. Specifically, the legislation limits board members to serving no more than two consecutive terms, with a provision that allows them to return to the board after sitting out one term. The bill's purpose stems from concerns about potential corruption and stagnation in condominium governance, as the legislature notes that one in four Hawaii residents live in such associations and have experienced issues like embezzlement, inaccessible leadership, and board members who maintain their positions through manipulative voting practices. The new law amends Section 514B-107 of Hawaii Revised Statutes to formally establish these term limits, while maintaining existing rules about who can serve on a board (such as requiring board members to be unit owners or authorized representatives and prohibiting tenants or employees from serving). Additionally, the bill reinforces existing provisions about board members' financial responsibilities, such as requiring board approval and owner notification for travel expenses and ensuring board members are provided with current association documents. The term limits aim to encourage more active participation from unit owners and reduce the potential for long-term entrenched leadership that might not represent the community's best interests.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=571&year=2025