HB1312

HOUSE OF REPRESENTATIVES	H.B. NO.	1312
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ASSOCIATION managers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that condominium associations often hire resident managers, site managers, and general managers to act as property managers to oversee a condominium project, its common elements, and the individual units within the condominium project. Oftentimes these projects have property values in the tens to hundreds of millions of dollars. The legislature further finds that condominium associations are governed by volunteer boards of directors who often have limited expertise in financing, property management, or building repair and maintenance. Therefore, it is crucial that the professional association managers hired to manage the day-to-day operations of condominium associations possess the specialized knowledge and expertise required to properly manage the associations they oversee. Furthermore, due to the establishment of more stringent structural facility maintenance requirements, it is more important than ever that condominium unit owners' associations are properly managed to protect the life and safety of residents in their communities.

The legislature also finds that one way to ensure that association managers are qualified is by establishing licensing requirements. The establishment of licensing requirements for association managers will increase accountability, improve the safety of residents, guests, and property, and help ensure repair and maintenance obligations in condominium associations are addressed in a timely manner.

Accordingly, the purpose of this Act is to establish licensing and regulation requirements for association managers who oversee the daily operations of a condominium unit owners' association.

SECTION 2. Chapter 514B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . ASSOCIATION MANAGERS

§514B- Definitions. As used in this part:

"Association manager" means any person, regardless of that person's title, who is hired or contracted by an association to oversee the daily operations of the association, including managing the association's budget, collecting dues, managing delinquencies, bookkeeping, maintaining common areas, performing site inspections, complying with applicable laws, hiring association employees, updating and maintaining insurance policies, enforcing governing documents, performing dispute resolution, and managing vendors.

"Department" means the department of commerce and consumer affairs.

§514B- License required. (a) Beginning July 1, 2027, it shall be unlawful for any person to be employed or contracted by an association as an association manager without having first obtained a license as provided in this part.

(b) Any person who violates this section shall be subject to a fine of not more than $ for each separate offense. Each day of each violation shall constitute a separate offense.

§514B- Exemptions. This part shall not apply to any employee or contractor of an association manager who works under the supervision or direction of a person who is licensed under this part.

§514B- Real estate commission; additional powers. (a) In addition to any other powers and duties authorized by law, the commission shall:

(1) Establish licensure requirements for association managers, including proof of completion of any third-party training classes;

(2) Grant, deny, or renew licenses to association managers;

(3) Adopt, amend, or repeal rules, pursuant to chapter 91, not inconsistent with the law, as may be necessary to administer, coordinate, and enforce the licensure of association managers pursuant to this chapter;

(4) Take disciplinary action against an association manager for violation of this chapter or any rules adopted pursuant to this part;

(5) Develop and adopt rules relating to the provision of services by association managers; and

(6) Adopt a code of ethics to address permissible and prohibited activities of licensees.

§514B- License fees. The department shall collect a license fee in an amount determined by the department to be reasonably necessary to reimburse the department for the costs incurred in establishing and administering the association manager licensure program pursuant to this part."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

Report Title:

DCCA; Association Managers; Real Estate Commission; Condominium Unit Owners' Associations; Managers; Licensing

Description:

Creates regulation requirements for association managers who oversee the daily operations of a condominium unit owners' association. Beginning 7/1/2027, requires licensure of association managers by the Real Estate Commission.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

HB 1312: RELATING TO ASSOCIATION MANAGERS.

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