Informing the Legislature that on May 26, 2026, the Governor signed the following bill into law: HB1678 HD1 SD1 CD1 (ACT 037).

2026 Regular Session

The act standardizes and clarifies cumulative voting for director elections in Hawaii associations and unit-owned entities, detailing vote counting, allocation, and winner rules.

Received.

#act037

Summary of GM 1137 (HB 1678, CD1) — Enrolled Act 037 (Hawaii, 2026)

Purpose and intent

The bill clarifies and standardizes the use of cumulative voting in elections for directors in certain associations and nonprofit corporations under Hawaii law.

It amends two statutory sections to specify how cumulative voting can be used, who is eligible to receive votes, and how winners are determined.

Key provisions and changes

Section 421J-3.2 (Cumulative voting for directors)

If an association’s bylaws allow cumulative voting, members may vote cumulatively by multiplying the number of votes they are entitled to cast by the number of positions to be filled.
Members may assign all multiplied votes to a single candidate or distribute votes among candidates.
The candidates who receive the highest total votes, up to the number of positions to be filled, are deemed elected and receive the longest terms.
Cumulative voting remains optional unless otherwise provided by the association’s documents.
A director elected by cumulative voting may be removed by the members if the conditions of section 421J-3.3 are met.
“Candidate” includes nominees or write-in candidates.

Section 514B-124.5 (Voting for elections; cumulative voting)

For units (e.g., in a housing cooperative or similar entity) with bylaws permitting cumulative voting, each unit owner’s votes equal their voting percentage times the number of positions to be filled.
Unit owners may cumulate their votes and allocate all to one candidate or distribute among candidates.
The candidate(s) receiving the highest votes, up to the number of positions, are deemed elected and receive the longest terms.
Vacancies on the board may still be filled in accordance with the chapter and governing documents.
“Candidate” includes nominees or write-in candidates.

Section 3 (statutory material) and Section 4 (effective date)

Revisions align statutory language and take effect upon approval.

Who is affected

Directors and members of associations (including nonprofit and similar organizations) that use or may use cumulative voting for director elections.

Unit owners in entities governed under Section 514B (likely common-interest communities such as housing cooperatives).

Governing documents of affected organizations (bylaws) may need to reference or conform to the clarified cumulative voting provisions.

Procedural/timeline aspects

The bill was enacted and approved by the Hawaii Governor on May 26, 2026.

The act becomes effective upon approval.

The legislative history indicates passage through both chambers with finalization in May 2026.

Practical impact

Provides a clear methodology for implementing cumulative voting, including calculation of voting power, allocation of votes, and tie/selection rules, potentially increasing representation for minority or minority-interest candidates where bylaws permit.

Ensures consistency between different types of associations (general associations and unit-based ownership structures) regarding how cumulative voting operates.