Status of Bills on Condominium Records

On March 11, 2004, I reported on a House Consumer Protection Hearing on bills relating to records. The committee passed out amended version of the bills and the bills will be going to conference committee.

SB 1348 HD1 This bill requires that board of director minutes for the current and prior year be made available at no cost or on 24 hour loan to all members at the resident manager's office or residence. Currently, only the current minutes are available at no cost or 24 hour loan. In addition, the bill will require that the agendas for the current and prior year must also be made available at the resident manager's office or residence.
I have concerns about the bill because it micromanages condominium associations. There is no value in making the old agendas available at the manager's office since an agenda only is a proposal for what is to be discussed at a meeting. Once the meeting is over, no one really needs to see it. There is also a serious issue about whether a resident manager's home should be invade to make minutes available to the members. The Association should be free to make the documents available on site or in other locations when it makes sense.

SB 1349 HD1 This bill would change the law so that associations would need to make financial statements, general ledgers, the accounts receivable ledger, accounts payable ledgers, check ledgers, insurance policies, contracts, and invoices available to its members for as long as the Association keep those records. Currently, owners have a right to those for 2 years and may request them thereafter. I have concerns about this bill because it attempts to micromanage condominium associations. However, the House Consumer Protection Committee has addressed the concern that the bill requires associations to keep these types of documents for five years.

If you wish to make your comments known, you should contact Representative Ken Hiraki and Senator Ron Menor before the conference committee meets.