Bill > HB835

This bill modifies the legal standards for officers and directors of condominium associations incorporated under Hawaii Revised Statutes (HRS) chapter 414D, specifically those subject to chapter 514B (which covers condominiums). Currently, officers and directors enjoy certain protections, such as the ability to rely on information from others and limited liability for actions taken in good faith. The bill removes these protections for condominium association officers and directors, ensuring they are held to a more stringent standard of negligence. Specifically, for corporations subject to chapter 514B, officers and directors will be required to act with the care of an ordinarily prudent person, maintain good faith, act consistently with their duty of loyalty, and believe their actions are in the best interests of the corporation. However, they will no longer be able to rely on information from others as a defense, will not be shielded from liability for actions taken, and will not benefit from the previous provisions that limited their liability, especially for volunteer service. The bill aims to increase accountability for condominium association leadership by removing legal protections and establishing a more rigorous standard of conduct. The changes will take effect on July 1, 2025, and do not impact rights, penalties, or proceedings that occurred before the effective date.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=835&year=2025