HB 382 Summary

• Requires board members of condominium associations under Chapter 514A and 514B to disclose substantial financial interests in writing to unit owners before taking action affecting both the association and a third-party provider.

• Defines "financial interest" to include ownership interests in businesses, creditor interests in insolvent businesses, employment or prospective employment, property ownership, loans or debtor interests, and directorships or officer positions.

• Prohibits board members from soliciting, accepting, or receiving gifts of any kind from third-party providers when the gift could reasonably be inferred to influence the board member's duties or reward their actions.

• Expands the Hawaii Real Estate Commission's investigatory and enforcement powers to include violations of the new conflict of interest and gift prohibition provisions through cease and desist orders and court injunctions.

• Establishes penalties of up to $10,000 in fines and/or one year imprisonment for violations, plus civil penalties up to $10,000 for each violation.