SB 2293: Condominium Associations; Boards of Directors; Education; Expenses

A BILL FOR AN ACT

relating to condominiums.

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

     SECTION 1.  The legislature finds that education and training are essential to ensure that condominium board members understand their fiduciary duties, legal responsibilities, compliance with local ordinances and regulations and state and federal laws, and their operational roles.  Effective self‑governance relies heavily on the informed decision-making of volunteer condominium board members.  However, despite board members' willingness to attend education and training events, rules put in place by the board or managing agent may hamper their participation.

     The legislature further finds that board members should be afforded the opportunity to attend educational training without any barriers.  The legislature also finds that volunteer board members should be empowered in their efforts to seek education.  Eliminating barriers that prevent board members from attending educational training events will strengthen the governance and resilience of condominium communities across the State.

     Accordingly, the purpose of this Act is to clarify the authorizations for education expenses incurred by the board of directors of a condominium association.

     SECTION 2.  Section 514B-107, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

     "(f)  The directors may expend association funds, which shall not be deemed to be compensation to the directors, to educate and train themselves in subject areas directly related to their duties and responsibilities as directors[; provided that the approved annual operating budget shall include these expenses as separate line items].  These expenses may include registration fees, books, videos, tapes, other educational materials, and economy travel expenses.  Except for economy travel expenses within the State, all other travel expenses incurred under this subsection shall be subject to the requirements of subsection (d).  There shall be no impediment or limitation imposed on a director who is willing to attend any condominium-related educational training."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Condominium Associations; Boards of Directors; Education; Expenses

Description:

Clarifies the authorizations for education expenses incurred by the board of directors of a condominium association.

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