reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-25 Allocation and distribution of net savings.

§421C-25 Allocation and distribution of net savings.
(a) At least once a year the members, the directors, or both, as the articles or bylaws provide, shall apportion the net savings of the association to one or more of the following categories; except that not less than ten per cent shall be placed in a surplus fund until such time as the fund shall equal at least fifty per cent of the paid-up share or membership capital:
(1) Interest-dividends, within the limitations of section 421C-19 may be paid upon share or membership capital;
(2) A portion of the net savings as determined by the articles or bylaws, may be allocated to an educational fund to be used to further the understanding of the practices and principles of cooperation;
(3) The association may also choose to pay a patronage refund from net savings and this shall be allocated at the same uniform rate to either the members or to all patrons of the association in proportion to their individual patronage, and according to the federal Internal Revenue Code of 1954, as amended; provided that:
(A) In the case of a member patron, the patron's proportionate amount of patronage refund shall be distributed to the patron;
(B) In the case of nonmember patrons, their proportionate amount of patronage refund, as the articles or bylaws may provide, may be distributed to them or, if requested by them, credited to their account until the amount of share or membership capital subscribed for has been fully paid.
(4) The association may also choose to retain some or all its net savings and allocate it in the manner in which it will benefit the general welfare of all the members of the association.
(b) The surplus fund established in subsection (a) may be expended for capital improvements or emergencies upon a two-thirds majority vote of the directors, or may be expended under section 421C-22, 421C-23, or 421C-24, by majority vote of the directors. [L 1982, c 97, pt of §2; am L 2001, c 129, §66]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-26 Cooperative agreements.

§421C-26 Cooperative agreements.
(a) Any association may enter into contracts, agreements, or arrangements with other associations, individuals, joint-ventures, partnerships, or corporations, for the cooperative and economical carrying on of its business.
(b) Any two or more associations by agreement may unite in employing and using or separately employ and use the same personnel, methods, means, and agencies for carrying on and conducting their respective business. [L 1982, c 97, pt of §2]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-27 Bonding.

§421C-27 Bonding.
Any individual acting as manager of an association and handling funds or securities amounting to $5,000 or more, in any one year, shall be covered by an adequate bond as determined by the directors and at the expense of the association. The bylaws may also provide for the bonding of other employees or officers. [L 1982, c 97, pt of §2]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-28 Books; review.

§421C-28 Books; review.
(a) Subject to subsection (b), every association shall keep a set of books of the association's business operations, which shall be reviewed at the end of each fiscal year by a certified public accountant who shall not be an officer, director, or employee of the association.
(b) Where the annual gross business income of an association amounts to less than $1,000,000 (which amount shall be adjusted for changes in the Consumer Price Index since May 15, 1982), the review need not be done by a certified public accountant but may be performed by a review committee of two individuals who shall not be employees, plus the association's treasurer.
(c) A written report of the review, which may include a statement of the amount of business transacted with members and the amount transacted with nonmembers, and which shall include a balance sheet of the association's income and expenses, shall be submitted to the annual meeting of the association. [L 1982, c 97, pt of §2; am L 1984, c 217, §8]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-29 Annual report.

§421C-29 Annual report.
(a) Every association shall file with the director of commerce and consumer affairs an annual report as prescribed by the director. A copy of the report shall be submitted to the members at their annual meeting, mailed to each member of the association, or printed in an official publication of the association.
(b) The annual report shall be filed within the time periods prescribed in subsections (c) and (d).
(c) Notwithstanding any other provision of this chapter to the contrary, annual reports reflecting the period from January 1, 2002, through December 31, 2002, that would otherwise be required, may be voluntarily filed with the department director if the annual report complies with the requirements of this section.
(d) Effective January 1, 2003, for every association whose date of registration in this State falls between:
(1) January 1 and March 31, the annual report shall be filed on or before March 31 of each year and shall reflect the state of the association's affairs as of January 1 of the year when filed;
(2) April 1 and June 30, the annual report shall be filed on or before June 30 of each year and shall reflect the state of the association's affairs as of April 1 of the year when filed;
(3) July 1 and September 30, the annual report shall be filed on or before September 30 of each year and shall reflect the state of the association's affairs as of July 1 of the year when filed; and
(4) October 1 and December 31, the annual report shall be filed on or before December 31 of each year and shall reflect the state of the association's affairs as of October 1 of the year when filed;
provided that if an association is formed in the same year in which the annual report is due, the association shall not be required to file an annual report for that year. Thereafter, the association shall comply with the requirements of this section. [L 1982, c 97, pt of §2 and c 204, §8; am L 1983, c 124, §17; am L 2002, c 130, §80]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-30 Voluntary dissolution, etc.

§421C-30 Voluntary dissolution, etc.
Section 421-21 shall apply to associations formed under this chapter. For the purposes of this chapter, the term "voting power voting thereon" means those members present. [L 1982, c 97, pt of §2]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-31 Merger.

§421C-31 Merger.
The general corporation laws relating to the merger of domestic corporations shall apply to associations formed under this chapter. [L 1982, c 97, pt of §2; am L 1986, c 339, §73; am L 2004, c 121, §27]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-32 Associations and agreements are not in restraint of trade.

§421C-32 Associations and agreements are not in restraint of trade.
No association, or method or act thereof which complies with this chapter, shall be deemed a conspiracy or combination in restraint of trade or an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily, or the creation of a combination or pool, or to accomplish any improper or illegal purpose. Any agreements authorized under this chapter shall not be considered as illegal, in restraint of trade, or as part of a conspiracy or combination to accomplish an illegal purpose or act. [L 1982, c 97, pt of §2]
Cross References
Restraint of trade exemption, see §480-11.
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-33 Volunteers exempted.

§421C-33 Volunteers exempted.
(a) For the purposes of this section, "volunteer" means an individual who:
(1) Is a member of an association;
(2) Is not an employee of the association; and
(3) Who volunteers and donates up to twenty-five hours of labor and services per month to the association.
(b) Associations may accept labor and services from volunteers.
(c) In addition to any exemptions granted to nonpaid labor, volunteers who acknowledge in writing that they are volunteers shall be construed not to be in the employ of the association, their labor and services shall be construed to not be employment, and they shall not be construed to be employees of the association, under title 21 or any other labor law. [L 1982, c 97, pt of §2]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-34 Use of name "cooperative"; penalty.

§421C-34 Use of name "cooperative"; penalty.
(a) Only (1) associations organized hereunder, (2) groups organized on a cooperative basis under this or any other law of this State, and (3) foreign corporations authorized to do business in this State on a cooperative basis under this or any other law of this State, shall be entitled to use the term "cooperative" or any abbreviation or derivation thereof, as part of their business name, or to represent themselves, in their advertising or otherwise, as conducting business on a cooperative basis as defined in this chapter, notwithstanding section 421-5.
(b) Any person, firm, or corporation violating this section shall be punished by a fine of not more than $1,000, and the attorney general or any aggrieved individual, association, or group organized on a cooperative basis under this or any other law of this State may sue to enjoin an alleged violation of this section. [L 1982, c 97, pt of §2]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-36 Exemption of voting stock from registration.

§421C-36 Exemption of voting stock from registration.
Membership stock or membership certificates under section 421C-3(a), or share or membership capital of any association organized under or existing prior to passage of this chapter shall be included as exempt securities under section 485A-201. [L 1982, c 97, pt of §2; am L 2006, c 229, §13]
Note
Effective date of L 1982, c 97 is May 15, 1982.
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-37 Existing cooperatives.

§421C-37 Existing cooperatives.
Any domestic corporation or group operating on a cooperative basis as defined in section 421C-1 may elect by a vote of two-thirds of the members present and voting to secure the benefits of and be bound by this chapter, and shall thereupon file such papers or amend such of its articles and bylaws as are not in conformity with these provisions. A certified copy of any amended articles shall be filed with the director of commerce and consumer affairs and a fee of $25 shall be paid. [L 1982, c 97, pt of §2 and c 204, §8; am L 1983, c 124, §17; am L 1984, c 217, §9]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-41 Annual report of unclaimed property.

Revision Note
Part heading added by revisor pursuant to §23G-15.
§421C-41 Annual report of unclaimed property.
Chapter 523A shall not apply to an electric utility cooperative association; provided that each association within one hundred twenty days after the close of the association's fiscal year, shall file with the director of finance an annual report of unclaimed property in its possession in a form prescribed by the director of finance; provided further that the electric utility cooperative association shall remain responsible for the payment of all claims relating to unclaimed property reported by it to the director of finance. [L 2005, c 52, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421C. Consumer Cooperative Associations › 421C-42 Disposition of non-escheat patronage refunds.

§421C-42 Disposition of non-escheat patronage refunds.
(a) An electric utility cooperative association shall transfer all non-escheat patronage refunds to a nonprofit corporation incorporated pursuant to chapter 414D.
(b) The nonprofit corporation to which non-escheat patronage refunds are transferred pursuant to subsection (a) shall use the non-escheat patronage refunds to:
(1) Fund electric energy assistance programs for low-income persons who reside in the service area of the electric utility cooperative association;
(2) Make donations to other nonprofit charitable and community organizations, as authorized by its board of directors;
(3) Grant educational scholarships to individuals who reside in the service area of the electric utility cooperative association; or
(4) Support other appropriate uses for the benefit of the general membership of the electric utility cooperative association, as may be authorized by its board of directors. [L 2005, c 52, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421H. Limited-Equity Housing Cooperatives › 421H-1 Definitions.

§421H-1 Definitions.
As used in this chapter, unless otherwise indicated by the context:
"Corporate equity" means the excess of the current fair market value of the corporation's assets, including its real property, over the sum of the current transfer values of all shares or membership interests, reduced by the principal balance of outstanding encumbrances upon the corporate real property as a whole.
"Limited-equity housing cooperative" means a stock cooperative corporation which is organized as a nonprofit corporation under chapter 414D for the purpose of holding title to, either in fee simple or for a term of years, improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock in the corporation held by the person having such right of occupancy; provided the corporation also:
(1) Is organized so that the consideration paid for an individual membership share by the first occupant following construction or acquisition by the corporation, including the principal amount of obligation incurred to finance the membership share, does not exceed seven per cent of the respective dwelling unit's development cost, acquisition cost, or of the fair market value appraisal by the permanent lender, whichever is greater; and
(2) Holds title to real property as the beneficiary of a trust providing for distribution for public or charitable purposes upon termination of the trust; or
(3) Holds title to real property subject to conditions which will result in reversion to a public or charitable entity for affordable housing upon dissolution of the corporation; or
(4) Holds a leasehold interest conditioned on the corporation's continued qualification under this chapter and providing for reversion to a public entity or charitable corporation for affordable housing. [L 1987, c 105, pt of §1; am L 1988, c 141, §47 and c 370, §5; am L 2002, c 40, §59]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421H. Limited-Equity Housing Cooperatives › 421H-2 Articles of incorporation.

§421H-2 Articles of incorporation.
(a) The articles of incorporation and bylaws shall require the purchase and sale of the stock of resident owners who cease to be residents, at not more than a transfer value determined as provided in the articles and bylaws, and which shall not exceed the aggregate of the following:
(1) The consideration paid for the membership share by the first occupant of the unit involved, as shown on the books of the corporation.
(2) Accumulated interest, or an inflation allowance at a rate which may be based on a cost-of-living index, an income index, or market-interest index. Any increment pursuant to this paragraph shall not exceed a ten per cent annual increase on the consideration paid for the membership or share by the first occupant of the unit involved.
(3) The value, as determined by the board of directors of the corporation, of any improvements installed at the expense of the member with the prior approval of the board of directors.
(4) No other charges, fees, premiums, taxes, or payments or exchanges of any kind may be imposed, assessed, or made a condition of any transfer.
(b) The articles of incorporation and bylaws shall require the board of directors or corporate members to sell the stock purchased as provided in subsection (a) to new resident shareholders at a price which does not exceed the transfer value paid for the unit. Upon termination or dissolution of the corporation, the then existing stockholders shall be paid an amount that does not exceed the transfer value of their share.
(c) Amendment of the articles of incorporation shall require the affirmative vote of at least two-thirds of the resident shareholders.
(d) The articles of incorporation and bylaws shall require:
(1) The corporation issue only one class of stock;
(2) One share shall be issued for each dwelling unit in the cooperative;
(3) Voting rights shall be based upon one share, one vote; and
(4) Each shareholder shall be a resident of the unit represented by the share held.
(e) The articles of incorporation and bylaws shall require a provision that there shall not be any social, political, racial, or religious discrimination nor any discrimination on the basis of age, sex, marital, or parental status, subject only to limitations under applicable federal, state, or county laws, rules, or regulations. [L 1987, c 105, pt of §1; am L 1988, c 373, §24]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421H. Limited-Equity Housing Cooperatives › 421H-4 Use of corporate equity.

§421H-4 Use of corporate equity.
(a) The corporate equity shall not be used for distribution to members, but only for the following purposes, and only to the extent authorized by the board, subject to the provisions and limitations of the charter of incorporation and bylaws:
(1) For the benefit of the corporation or the improvement of the real property, including its use as collateral for loans.
(2) For expansion of the corporate equity by acquisition of additional interest in real property for purposes consistent with its charter.
(3) For public benefit or charitable purposes.
(b) Upon sale of the property, dissolution of the corporation, or occurrence of a condition requiring termination of the trust or reversion of title to the real property, the corporate equity shall be required by the charter, bylaws, or trust or title conditions to be paid out, or title to the property transferred, subject to outstanding encumbrances and liens, and the transfer value of membership shares, for use for public or charitable purposes.
(c) The membership shares and cooperative fees are interests in real property for purposes of:
(1) Cooperative housing corporations under section 216 of the federal Internal Revenue Code of 1954, as amended; and
(2) Exemption from state general excise tax under section 237-24(16). [L 1987, c 105, pt of §1; am L 1989, c 14, §16; am L 1993, c 350, §16]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-1 Cooperative housing corporation; defined.

§421I-1 Cooperative housing corporation; defined.
As used in this chapter, unless otherwise indicated by the context, "corporation" means a cooperative housing corporation that:
(1) Has one and only one class of stock outstanding;
(2) Allows each tenant shareholder to occupy a dwelling unit for dwelling purposes solely by reason of the tenant shareholder's ownership of stock in the corporation;
(3) Does not allow a shareholder to receive, either conditionally or unconditionally, any distributions from the corporation except when there is a complete or partial liquidation of the corporation; provided that this paragraph does not apply to earnings and profits of the corporation; and
(4) Has eighty per cent or more of the gross income for the taxable year in which taxes are paid or incurred pursuant to 26 United States Code section 216(A) derived from tenant shareholders. [L 1993, c 282, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-3 Board of directors; election.

§421I-3 Board of directors; election.
(a) A meeting of the corporation for the purpose of electing the board of directors shall be held not later than one hundred eighty days after the first conveyance of a dwelling unit to a shareholder, if at least forty per cent of the dwelling units have been conveyed by that time. If forty per cent of the dwelling units have not been conveyed within one year after the first conveyance, the meeting of the corporation may be held upon the call of the owners of at least ten per cent of the shares by a petition presented to the secretary of the corporation.
(b) Every member of the board of directors shall be:
(1) A shareholder of the cooperation;
(2) A spouse of a shareholder; or
(3) A trust beneficiary, if the shareholder is a trustee.
(c) Each dwelling unit shall have only one representative on the board of directors. [L 1993, c 282, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-4 Proxies.

§421I-4 Proxies.
(a) A proxy shall be valid only for a specific meeting and any of that meeting's adjournments.
(b) A shareholder may designate any person or the board of directors as a proxy, and the proxy may be limited as indicated by the shareholder. No proxy shall be irrevocable unless:
(1) The proxy is coupled with a financial interest in the dwelling unit; or
(2) The proxy is held pursuant to a first mortgage of record encumbering a dwelling unit or an agreement of sale affecting a dwelling unit.
(c) A proxy statement shall contain at least the following information:
(1) The name of the corporation;
(2) The date of the meeting to which the proxy is applicable;
(3) The printed name and the signature of the shareholder giving the proxy; and
(4) The dwelling unit or units for which the proxy is given. [L 1993, c 282, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-5 Meetings of the board of directors.

§421I-5 Meetings of the board of directors.
(a) All meetings of the board of directors, other than executive sessions, shall be open to all shareholders, and the shareholders may participate in any deliberation or discussion unless a majority of a quorum of the board of directors votes otherwise. The board of directors may adopt reasonable restrictions on shareholder participation.
(b) The board of directors shall meet at least once each year. Whenever practicable, notice of all board meetings shall be posted in prominent locations within the project by the resident manager, managing agent, member of the board of directors, or other person designated by the board of directors, at least seventy-two hours prior to the meeting or simultaneously when notice is given to members of the board of directors.
(c) Minutes of the meetings of the board of directors shall include the recorded vote of each board member on all motions except motions voted upon in executive session.
(d) The board of directors, with the approval of a majority of a quorum of its members, may adjourn any meeting and reconvene in executive session to discuss and vote upon matters concerning personnel or litigation in which the corporation is or may become involved, if the general nature of any business to be considered in executive session is first announced in the session open to all shareholders.
(e) No board member shall cast that board member's vote by proxy.
(f) A board member shall not be allowed to vote at any board meeting where the board member has a conflict of interest. The board member shall disclose the conflict of interest, in its general nature, prior to the vote on that matter. The minutes of the meeting shall record the substance of the disclosure of the conflict of interest. [L 1993, c 282, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-7 Shareholder list.

§421I-7 Shareholder list.
The resident manager or managing agent or board of directors shall keep an accurate and current list of shareholders of the corporation and their current addresses, including the names and addresses of the vendees under an agreement of sale, if any. The list shall be maintained at a place designated by the board of directors and a copy shall be available, at cost, to any shareholder who furnishes to the resident manager, managing agent, or board of directors an affidavit stating that the list shall be used solely by the shareholder personally and solely for the purpose of soliciting votes or proxies or providing information to other shareholders with respect to corporation matters, and shall not be furnished to anyone for use for any other purpose. [L 1993, c 282, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-8 Notification of assessment increases.

§421I-8 Notification of assessment increases.
(a)
The board of directors shall notify the shareholders in writing of any increase in assessments for common expenses, at least thirty days prior to the increase.
(b) As used in this section, "assessments for common expenses" means any amounts collected from shareholders pursuant to the terms of the corporation's bylaws, articles of incorporation, or proprietary leases, for the operation, maintenance, management, repair, replacement, and improvement of the land, buildings, and any other real or personal property owned or leased by the corporation. [L 1993, c 282, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-9 Mediation and arbitration of disputes.

§421I-9 Mediation and arbitration of disputes.
At the request of any party, any dispute concerning or involving one or more shareholders and a corporation, its board of directors, managing agent, resident manager, or one or more other shareholders relating to the interpretation, application, or enforcement of this chapter or the corporation's articles of incorporation, bylaws, or rules adopted in accordance with its bylaws shall be submitted first to mediation. When all reasonable efforts for mediation have been made and the dispute is not settled either in conference between the parties or through mediation, the dispute shall be submitted to arbitration in the same manner and subject to the same requirements, to the extent practicable, which now apply to condominiums under section 514B-162. [L 1993, c 282, pt of §1; am L 2004, c 164, §12; am L 2005, c 93, §7; am L 2008, c 28, §9; am L 2017, c 181, §16]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-11 Application of Hawaii business corporation act.

§421I-11 Application of Hawaii business corporation act.
The provisions of the Hawaii Business Corporation Act, chapter 414, shall apply to cooperative housing corporations, except to the extent that the provisions of chapter 414 are inconsistent with this chapter. [L 1993, c 282, pt of §1; am L 2002, c 40, §60]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-12 Employees of cooperative housing corporations; background checks.

§421I-12 Employees of cooperative housing corporations; background checks.
The board of directors of a cooperative housing corporation, or the manager of a cooperative housing project, upon the written authorization of an applicant for employment as a security guard or manager or for a position that would allow the employee access to the keys of or entry into the units in the project or access to corporation funds, may conduct a background check on the applicant, or direct another responsible party to conduct the check. Before initiating or requesting a check, the board of directors or the manager shall first certify that the signature on the authorization is authentic and that the person is an applicant for employment. The background check, at a minimum, shall require the applicant to disclose whether:
(1) The applicant has been convicted in any jurisdiction of a crime that would tend to indicate the applicant is unsuited for employment as an employee with access to corporation funds or the keys of or entry to the units in the project; and
(2) The judgment of conviction has not been vacated.
For purposes of this section, the criminal history disclosure made by the applicant may be verified by the board of directors, manager, or other responsible party, if so directed by the board or the manager, by means of information obtained through the Hawaii criminal justice data center. The board or manager may conduct a criminal history record check directly through the Hawaii criminal justice data center. The applicant shall provide the Hawaii criminal justice data center with personal identifying information which shall include but not be limited to the applicant's name, social security number, date of birth, and gender. This information shall be secured only for the purpose of conducting the criminal history record check authorized by this section. Failure of a cooperative housing corporation or the manager to conduct or verify or cause to have conducted or verified a background check shall not alone give rise to any private cause of action against the corporation or manager for acts and omissions of the employee hired. [L 2003, c 95, §6]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421I. Cooperative Housing Corporations › 421I-13 Service of process.

§421I-13 Service of process.
The board of directors of the corporation shall establish a policy to provide reasonable access to persons authorized to serve civil process in compliance with section 634-21.5. [L 2009, c 158, § §1, 8; am L 2011, c 65, §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-1 Scope.

§421J-1 Scope.
This chapter shall apply to all planned community associations existing as of June 16, 1997 and all planned community associations created thereafter. [L 1997, c 132, pt of §1]
Revision Note
"June 16, 1997" substituted for "the effective date of this chapter".
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-3 Board of directors.

§421J-3 Board of directors.
(a) Every member of the board of directors shall be a member of the association. However, a developer may appoint or elect directors pursuant to any special voting rights or power of appointment reserved to the master developer.
(b) The board of directors shall be composed of the number and group of persons specified in the association documents. There shall not be more than one representative on the board of directors from any one unit that is owned by any person other than the master developer or declarant.
[L 1997, c 132, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-3.2 Cumulative voting for directors.

§421J-3.2 Cumulative voting for directors.
(a) If the association documents provide for cumulative voting by members, members may so vote, by multiplying the number of votes the members are entitled to cast by the number of positions for whom they are entitled to vote, and cast the product for a single candidate or distribute the product among two or more candidates. The candidates receiving the highest number of votes under this section, up to the total number of positions to be filled, shall be deemed elected, and shall be given the longest term.
(b) Unless otherwise provided in the association documents, cumulative voting shall not be permitted.
(c) A director elected by cumulative voting may be removed by the members with or without cause if the requirements of section 421J-3.3 are met. [L 2022, c 69, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-3.5 Notice required; regular, annual, and special meetings.

§421J-3.5 Notice required; regular, annual, and special meetings.
(a) Not less than fourteen days in advance of any regular, annual, or special meeting of an association, the secretary or other officer specified in the bylaws shall give written notice of the meeting to each member of the association as provided in the bylaws of the association or by two or more of the following means:
(1) Hand delivery;
(2) United States mail sent to the mailing address of each unit or to another mailing address designated in writing by the association member;
(3) Electronic mail to the electronic mailing address designated in writing by the association member; or
(4) Posting of the meeting notice in its entirety on a portion of the association's website that is accessible to all members.
(b) Notice pursuant to subsection (a) shall state:
(1) The date, time, and place of the meeting; and
(2) The items on the agenda, including the general nature of and rationale for any proposed amendment to the declaration or bylaws; any proposal for a special assessment, unless the authority for a special assessment is otherwise provided for in the association's governing documents; and any proposal to remove a member of the board.
(c) The requirements of this section shall not be interpreted to preclude any association member from proposing an amendment to the declaration or bylaws.
(d) The requirements of this section shall not be interpreted to apply to any board meetings or committee meetings of a planned community association.
(e) Notwithstanding any provision to the contrary in the association documents, the association may conduct an annual, regular, or special meeting remotely in a manner consistent with section 414D-101(g) or 414D-102(f), as applicable.
(f) If the board of directors does not intend to use association funds to distribute proxies that include the election of directors and therefore does not post notice pursuant to section 421J-4(e), the board shall post notice in prominent locations within the planned community of its intent to distribute written notice of an association meeting at least twenty-one days in advance of distributing written notice under subsection (a). [L 2013, c 188, §2; am L 2021, c 83, §1; am L 2022, c 69, §4]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-5 Meetings of the board of directors; committee or subcommittee.

§421J-5 Meetings of the board of directors; committee or subcommittee.
(a) All meetings of the board of directors, other than executive sessions, shall be open to all members to provide input on the matters being discussed. Members who are not on the board of directors may participate in any deliberation or discussion, other than during executive sessions, unless a majority of a quorum of the board of directors votes otherwise.
(b) The board of directors shall meet at least once each year.
(c) The board of directors, with the approval of a majority of a quorum of its members, may adjourn any meeting and reconvene in executive session to discuss and vote upon matters concerning personnel, litigation in which the association is or may become involved, or as may be necessary to protect the attorney-client privilege of the association. The general nature of any business to be considered in executive session shall be first announced in the regular session.
(d) No board member shall vote by proxy at board meetings.
(e) A director who has a conflict of interest on any issue before the board shall disclose the nature of the conflict of interest prior to a vote on that issue at the board meeting, and the minutes of the meeting shall record the fact that a disclosure was made.
(f) The board may appoint committees or subcommittees to review and consider any specific matters, and may alter or eliminate the committees or subcommittees; provided that the board in the minutes of the meeting at which the action was taken to appoint the committee or subcommittee shall:
(1) Report that the committee or subcommittee was appointed;
(2) Identify the members of the committee or subcommittee; and
(3) Describe the matter that the committee or subcommittee is to review and consider.
(g) Minutes of the meetings of the board of directors shall include the recorded vote of each board member present on all motions except motions voted upon in executive session. [L 1997, c 132, pt of §1; am L 2006, c 312, §2; am L 2008, c 191, §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-6 Robert's Rules of Order.

§421J-6 Robert's Rules of Order.
All association and board of directors meetings shall be conducted in accordance with the most current edition of Robert's Rules of Order, Newly Revised.
[L 1997, c 132, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-7.5 Restatement of association documents.

§421J-7.5 Restatement of association documents.
(a) Notwithstanding any provision of this chapter, an association, by a resolution adopted by the board, may at any time restate the association documents of the association to include amendments to the association documents.
(b) An association, by a resolution adopted by the board, may at any time, restate the association documents of the association to amend the association documents as necessary to conform with this chapter or any other applicable law, ordinance, or rule; provided that any association documents restated pursuant to this section shall:
(1) Identify each portion so restated;
(2) Contain a statement that those portions have been restated solely for purposes of information and convenience;
(3) Identify the law, ordinance, or rule implemented by the amendment; and
(4) Contain a statement that, in the event of any conflict, the restated association documents shall be subordinate to the cited law, ordinance, or rule.
The restated association documents shall be effective for all purposes as if adopted by a vote or written consent of the members.
(c) Upon the adoption of a resolution pursuant to subsection (a) or (b), the restated association documents shall state all of the operative provisions of the original association documents, together with a statement that the restated association documents correctly state the corresponding provisions of the association documents, and that the restated association documents supersede the original association documents and any relative amendments.
(d) A restated association document shall be recorded if the original document was recorded and the restated association documents shall supersede the original association documents and any relative amendments. In the event of any conflict, the restated association documents shall be subordinate to the original association documents and any relative amendments. [L 2008, c 70, pt of §2]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-8 Membership list.

§421J-8 Membership list.
The association shall use good faith efforts to keep an accurate and current list of the names and addresses of association members. If the list is not provided directly to members, the association shall develop a reasonable procedure by which owners may solicit votes or proxies or provide information to other owners with respect to association matters. The board may require members to furnish the association with an affidavit stating that the use of the list is requested in good faith for the protection of the association, its members, or both.
[L 1997, c 132, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-11 Applicability of other laws.

§421J-11 Applicability of other laws.
Nothing in this chapter shall be construed to exempt any association or person from compliance with any applicable law, or subject any association or person to any other applicable law; provided that in the event of a conflict between any such law and this chapter, this chapter shall govern.
[L 1997, c 132, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-12 Amendment of association documents when no procedure provided.

§421J-12 Amendment of association documents when no procedure provided.
(a) Whenever an association document provides that it may be amended by the vote of association members at a meeting, the association document may also be amended by the written consent of the same percentage of association members without a meeting.
(b) Whenever neither an association document nor any applicable law provide procedures for amendment of that document, the association document may be amended by the vote or written consent of association members representing three-fourths of the votes which association members are entitled to cast with respect to a declaration and two-thirds of the votes which association members are entitled to cast with respect to other association documents; provided that this section shall not apply to articles of incorporation or any association documents which by their terms or as a matter of law may be adopted or amended by the board of directors. Nothing in this section shall be deemed to supersede or override any provision of any association documents related to amendments, or any provision of any law pertaining to associations or corporations.
(c) For purposes of this section, a requirement in any association document that an owner must sign an amendment to that document shall be satisfied by the receipt of a written consent signed by the owner.
[L 1997, c 132, pt of §1; am L 2008, c 70, §4]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-13 Mediation of disputes.

§421J-13
Mediation of disputes.
(a) At the request of any party, any dispute concerning or involving one or more members and an association, its board of directors, managing agent, manager, or one or more other members relating to the interpretation, application, or enforcement of this chapter or the association documents, shall first be submitted to mediation.
(b) Nothing in subsection (a) shall be interpreted to mandate the mediation of any dispute involving:
(1) Actions seeking equitable relief involving threatened property damage or the health or safety of association members or any other person;
(2) Actions to collect assessments;
(3) Personal injury claims; or
(4) Actions against an association, a board of directors, or one or more directors, officers, agents, employees, or other persons for amounts in excess of $2,500 if insurance coverage under a policy of insurance procured by the association or its board of directors would be unavailable for defense or judgment because mediation was pursued.
(c) If any mediation under this section is not completed within two months from commencement, no further mediation shall be required unless agreed to by the association and the member.
[L 1997, c 132, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-14 First annual meeting of association.

§421J-14
First annual meeting of association.
The first annual meeting of the association shall take place as provided in the association documents, but not later than one year after the closing of the first conveyance of a unit to a person other than a developer.
[L 1997, c 132, pt of §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-15 Service of process.

§421J-15 Service of process.
The board shall establish a policy to provide reasonable access to persons authorized to serve civil process in compliance with section 634-21.5. [L 2009, c 158, § §2, 8; am L 2011, c 65, §1]
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-16 Medical cannabis; discrimination.

§421J-16 Medical cannabis; discrimination.
A provision in any association document allowing for any of the discriminatory practices listed in section 515-3(a)(1) to (7) against a person residing in a unit who has a valid certificate for the medical use of cannabis as provided in section 329-123 in any form is void, unless the association document prohibits the smoking of tobacco and the medical cannabis is used by means of smoking. Nothing in this section shall be construed to diminish the obligation of a planned community association to provide reasonable accommodations for persons with disabilities pursuant to section 515-3(a)(9). [L 2015, c 242, §3; am L 2017, c 170, §2; am L 2023, c 17, §11]
Cross References
For similar provision, see §514B-113.
2023 Hawaii Revised Statutes › Title 23. Corporations and Partnerships › 421J. Planned Community Associations › 421J-17 Personal agriculture allowed.

§421J-17 Personal agriculture allowed.
(a) No association shall prohibit or unreasonably restrict the use of a unit owner's enclosed yard area for personal agriculture; provided that the use is not in violation of the association's existing master landscape plan or other restrictive covenants applicable to the unit.
(b) This section shall apply only to enclosed yard areas that are designated for the exclusive use of the unit owner.
(c) This section shall not:
(1) Apply to provisions in an association document that impose reasonable restrictions on the use of a unit owner's enclosed yard area for personal agriculture; or
(2) Prohibit an association from applying rules and regulations requiring that dead plant material and weeds, with the exception of straw, mulch, compost, and other organic materials intended to encourage vegetation and retention of moisture in the soil, be regularly cleared from the enclosed yard area.
(d) For purposes of this section:
"Personal agriculture" means a use of land where an individual cultivates lawful edible plant crops for personal use or donation.
"Reasonable restrictions" means restrictions that are reasonably necessary to protect neighbor unit owners or residents' use and enjoyment of their property and do not unreasonably increase the cost of engaging in personal agriculture or unreasonably decrease its efficiency. [L 2022, c 133, §1]