HB2672.DOC

SECTION 1. The legislature finds that exposure to smoke, whether direct or secondhand, causes adverse health outcomes such as asthma and other respiratory illnesses, cardiovascular disease, and cancer. The Surgeon General of the United States has found that there is no safe level or amount of exposure to secondhand smoke. In 2006, Hawaii enacted Act 295, Session Laws of Hawaii 2006, a smoke-free workplace and public places law to protect the public from involuntary exposure to smoke in enclosed and partially-enclosed areas. Further, Act 91, Session Laws of Hawaii, 2014, assisted in providing secondhand smoke-free environments for families by prohibiting smoking in and around public housing projects, state low-income housing projects, and elder or elderly households. These laws, however, exclude private residences.

The legislature further finds that residents living in multiple dwelling units such as apartments and condominiums commonly experience tobacco smoke drifting into their units from neighbors who smoke. Often, the stale odor of tobacco smoke lingers in and near apartments of people who smoke indoors, even after they have vacated the apartment. This is an indicator of "thirdhand smoke", which is the residual contamination that is left behind from cigarettes, cigars, and other tobacco products. This residue builds up on surfaces and furnishings and lingers in rooms long after smoking stops. A non-smoker can be exposed to thirdhand smoke from entering an elevator or a room where someone has smoked. Among the substances in thirdhand smoke are hydrogen cyanide, used in chemical weapons; butane, used in lighter fluid; toluene, found in paint thinners; arsenic lead; and carbon monoxide.

The legislature further finds that a 2010 study demonstrated that thirdhand smoke remains after smokers have vacated their homes and thirdhand smoke resists normal cleaning, even when new carpeting and paint are applied. Thirdhand smoke cannot be eliminated by airing out rooms, opening windows, using fans or air conditioners, or confining smoking to only certain areas of a home.

The legislature finds that, as researchers continue to explore the potential dangers of thirdhand smoke, new smoke-free policies have benefited prospective residents who are seeking protection from smoke. Several jurisdictions have required landlords to disclose their smoking policies, such as Maine and Oregon; as well as the cities of San Francisco and Oakland, California; Duluth, Minnesota; and Buffalo, New York. Some courts have found that if a dangerous condition exists on a property that a prospective resident may not be aware of or notice upon a casual inspection, then the property owner has a responsibility to warn the resident of the danger. Just as property owners are required to warn prospective renters or homeowners on the presence of lead-based paint or radon, asbestos, and even bed bugs, these jurisdictions now require owners to notify prospective residents about a property’s smoking policy.

Buyers and tenants of residential real properties need to be notified in advance whether residents and guests may be exposed to secondhand and thirdhand smoke. Advance notices also benefit sellers and landlords by reducing buyer and tenant complaints.

The purpose of this Act is to promote smoke-free environments in the community by protecting new residents and their visitors in private homes from the potential dangers of secondhand and thirdhand smoke. Specifically, this Act requires a seller or landlord of a residential unit or apartment to provide:

(1) A smoking history disclosure that states whether smoking occurred within the unit or apartment and other parts of the property; and

(2) A smoking policy disclosure if the unit or apartment is a residential condominium unit, cooperative apartment, or rental dwelling unit.

The legislature does not intend for this Act to require cooperative housing corporations, condominium projects, and landlords to adopt policies that prohibit smoking.

SECTION 2. Chapter 508D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§508D- Disclosure of smoking history; smoking policy. (a) A disclosure statement relating to a dwelling unit, residential condominium unit, or cooperative apartment shall include a smoking history disclosure that notifies buyers and residents or potential buyers and residents whether smoking occurred within the unit or apartment and any other area of the property on which the unit or apartment is situated.

(b) A disclosure statement relating to a residential condominium unit or cooperative apartment shall include a smoking policy disclosure that notifies residents or potential residents whether smoking is prohibited or allowed in the unit or apartment and any other area of the premises; provided that if the condominium project or cooperative housing corporation allows smoking in limited areas on the premises, the disclosure shall identify the areas on the premises where smoking is allowed.

"Premises" means a condominium unit or cooperative apartment, and any appurtenances thereto, grounds, common areas, and facilities held out for the use of owners and residents of units or apartments generally and any other area or facility of the condominium project or cooperative housing corporation whose use is promised to those owners and residents.

"Smoking" shall have the same meaning as provided in section 328J-1."

SECTION 3. Section 521-43, Hawaii Revised Statutes, is amended to read as follows:

"§521-43 Rental agreement, disclosure. (a) A landlord or any person authorized to enter into a rental agreement on the landlord's behalf shall disclose to the tenant in writing at or before the commencement of the tenancy the name and address of:

(1) Each person authorized to manage the premises; and

(2) Each person who is an owner of the premises or who is authorized to act for or on behalf of the owner for the purpose of service of process and receiving and receipting for rents, notices, and demands.

The information required to be furnished shall be kept current and shall be enforceable against any successor landlord, owner, or manager.

(b) A person who fails to comply with subsection (a) becomes an agent of each person who is a landlord for:

(1) Service of process and receiving and receipting for rents, notices, and demands; and

(2) Performing the obligations of the landlord under this chapter and under the rental agreement and expending or making available for the purpose all rent collected from the premises.

(c) Any owner or landlord not dealing directly with the tenant shall be responsible for compliance with this section by an owner or landlord dealing directly with the tenant and shall be stopped from any objection to a failure to serve process upon an owner or landlord in any proceeding arising under this chapter when such failure is due to failure to comply with this section. The owner or landlord who deals directly with the tenant and fails to comply with this section shall be deemed an agent of every other landlord under the rental agreement for performing the obligations of the landlord under this chapter and under the rental agreement.

(d) In the case of a written rental agreement, the landlord shall furnish a copy of the lease or rental agreement to the tenant.

(e) The landlord shall furnish to the tenant a written receipt for rents paid at the time of payment. Canceled checks shall also constitute and fulfill the requirement of a written receipt. If rent is paid by check, the landlord shall furnish a receipt therefor, provided a receipt is requested by the tenant.

(f) Any owner or landlord who resides without the State or on another island from where the rental unit is located shall designate on the written rental agreement an agent residing on the same island where the unit is located to act in the owner's or landlord's behalf. In the case of an oral rental agreement, the information shall be supplied to the tenant, on demand, in a written statement.

(g) Subsections (a) and (b) to the contrary notwithstanding, the information required to be disclosed to a tenant, instead of being disclosed in the manner described in subsections (a) and (b), may be disclosed as follows:

(1) In each multi-unit single-owner dwelling structure containing an elevator, a printed or typewritten notice containing the information required by subsections (a) and (b) shall be placed and continuously maintained in every elevator and in one other conspicuous place;

(2) In each multi-unit single-owner dwelling structure not containing an elevator, a printed or typewritten notice containing the information required by subsections (a) and (b) shall be placed and continuously maintained in at least two conspicuous places;

(3) In each multi-unit dwelling structure, a printed or typewritten notice containing the information required by subsections (a) and (b) shall be posted within the unit in a conspicuous place.

(h) Landlords shall provide their general excise tax number to all tenants for the purpose of filing for a low-income tax credit.

(i) The landlord or any person authorized to enter into a rental agreement on the landlord's behalf shall include in the rental agreement:

(1) A smoking history disclosure that notifies tenants or potential tenants whether smoking occurred within the dwelling unit and any other area of the premises; and

(2) A smoking policy disclosure that notifies tenants or potential tenants whether smoking is prohibited or allowed on the premises; provided that if the landlord allows smoking in limited areas on the premises, the disclosure shall identify the areas on the premises where smoking is allowed.

(j) For the purposes of this section, "smoking" shall have the same meaning as provided in section 328J-1."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on August 1, 2016, and shall apply to any applicable agreement, contract, or mandatory seller disclosure statement entered into or required by law after September 1, 2016.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2672
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII