HB1862

PART I

SECTION 1. The legislature finds that evictions are costly and disruptive for landlords and tenants and can also have severe and long-lasting impacts on tenants. Once evicted, tenants must find a new residence, pay moving expenses, suffer damage to their credit scores, and bear other costs such as rental application fees and security deposits, and even costs borne by the landlord during the eviction process.

The legislature further finds that the simple filing of eviction proceedings against a tenant, even when those proceedings are meritless, can create a long-term barrier to access to housing because eviction records are created the moment a landlord files a complaint with the court. Thus, even if the court does not find for the landlord or the landlord withdraws the complaint, the eviction filing remains of record. Companies that screen tenants collect and sell this information and their data collection methods typically include anyone named as a defendant in an eviction proceeding. Landlords screen against prospective tenants who have had any eviction action initiated against them without regard to outcome. This process disempowers tenants who may have legitimate disputes with their landlords because eviction filings can be used to pressure tenants to vacate a residence.

The purpose of this Act is to:

(1) Require that all court records of any eviction proceeding be sealed within specified timeframes upon resolution of the proceeding;

(2) Authorize the court to seal certain eviction records prior to the expiration of these timeframes upon motion by a tenant who is able to demonstrate that certain conditions apply;

(3) Require the clerk of the court to provide access to sealed eviction records to the tenant;

(4) Make it a discriminatory practice to require a person to disclose a sealed eviction record as a condition of certain real property transactions; and

(5) Prohibit discrimination in real property transactions against a person with a sealed eviction record.

PART II

SECTION 2. Chapter 666, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§666- Eviction records; sealing. (a) The court shall seal all court records of any legal proceeding brought by a landlord to evict a tenant, whether by a summary possession proceeding or an action in the nature of an action of ejectment or otherwise, within:

(1) Thirty days of the final resolution of an eviction proceeding that does not result in a judgment for possession in favor of the landlord; or

(2) Three years of the resolution of a landlord's claim to recover possession of the rented premises from a tenant, regardless of the final disposition of the claim.

(b) The court may seal court records of any legal proceeding brought by a landlord to evict a tenant, whether by a summary possession proceeding or an action in the nature of an action of ejectment or otherwise, prior to the expiration of the times specified in subsection (a) upon motion by a tenant if the tenant demonstrates by a preponderance of the evidence that:

(1) The judgment in favor of the landlord is for an amount of $500 or less;

(2) The tenant was evicted from a unit under any low-income federal housing choice voucher program or state low-income rental supplement program;

(3) The landlord brought an action for summary possession in violation of federal law following an incident pertaining to domestic violence, dating violence, sexual assault, or stalking;

(4) The landlord committed a discriminatory practice under chapter 515 against the tenant and sought to recover possession of the rented premises in response to the tenant filing a complaint against unlawful discrimination with the civil rights commission;

(5) The landlord violated sections 521-39, 521-74(a), or 521-74.5;

(6) The parties entered into a settlement agreement that did not result in the landlord recovering possession of the rented premises; or

(7) The court determines that there are other grounds justifying the requested relief.

(c) Upon written request, the clerk of the court shall provide access to a record sealed under this section to the tenant."

PART III

SECTION 3. Chapter 515, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§515- Sealed eviction records. (a) It is a discriminatory practice for a person to engage in any act deemed unlawful under this chapter based on the actual knowledge or belief that a person has a sealed eviction record.

(b) It is a discriminatory practice for any person to require another person to disclose a sealed eviction record as a condition of:

(1) Entering into any transaction in real property;

(2) Including any clause, condition, or restriction in the terms of a transaction in real property;

(3) Appraising a property, agreeing to lend money, guaranteeing a loan, purchasing a loan, accepting residential real property as security for a loan, accepting a deed of trust or mortgage, or otherwise making funds available for the purchase, acquisition, construction, alteration, rehabilitation, repair, or maintenance of real property; or providing title or other insurance relating to ownership or use of any interest in real property;

(4) Accessing facilities, services, repairs, or improvements for a tenant or lessee; or

(5) Accessing, joining as a member of, or participating in, any multiple listing service, real estate brokers' organization, or other service, organization, or facility involved either directly or indirectly in real estate transactions, including in terms or conditions of access, membership, or participation in any such organization, service, or facility."

SECTION 4. Section 515-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Sealed eviction record" means an eviction record that has been sealed pursuant to section 666- ."

SECTION 5. Section 515-3, Hawaii Revised Statutes, is amended to read as follows:

"§515-3 Discriminatory practices. It is a discriminatory practice for an owner or any other person engaging in a real estate transaction, or for a real estate broker or salesperson, because of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection[:], or sealed eviction record:

(1) To refuse to engage in a real estate transaction with a person;

(2) To discriminate against a person in the terms, conditions, or privileges of a real estate transaction, or in the furnishing of facilities or services in connection with a real estate transaction;

(3) To refuse to receive or to fail to transmit a bona fide offer to engage in a real estate transaction from a person;

(4) To refuse to negotiate for a real estate transaction with a person;

(5) To represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is available, or to fail to bring a property listing to the person's attention, or to refuse to permit the person to inspect real property, or to steer a person seeking to engage in a real estate transaction;

(6) To offer, solicit, accept, use, or retain a listing of real property with the understanding that a person may be discriminated against in a real estate transaction or in the furnishing of facilities or services in connection with a real estate transaction;

[[](7)[]] To solicit or require as a condition of engaging in a real estate transaction that the buyer, renter, or lessee be tested for human immunodeficiency virus infection, the causative agent of acquired immunodeficiency syndrome;

[[](8)[]] To refuse to permit, at the expense of a person with a disability, reasonable modifications to existing premises occupied or to be occupied by the person if modifications may be necessary to afford the person full enjoyment of the premises; provided that a real estate broker or salesperson, where it is reasonable to do so, may condition permission for a modification on the person agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted;

[[](9)[]] To refuse to make reasonable accommodations in rules, policies, practices, or services, when the accommodations may be necessary to afford a person with a disability equal opportunity to use and enjoy a housing accommodation; provided that if reasonable accommodations include the use of an animal, reasonable restrictions may be imposed;

[[](10)[]] In connection with the design and construction of covered multifamily housing accommodations for first occupancy after March 13, 1991, to fail to design and construct housing accommodations in such a manner that:

(A) The housing accommodations have at least one accessible entrance, unless it is impractical to do so because of the terrain or unusual characteristics of the site; and

(B) With respect to housing accommodations with an accessible building entrance:

(i) The public use and common use portions of the housing accommodations are accessible to and usable by persons with disabilities;

(ii) Doors allow passage by persons in wheelchairs; and

(iii) All premises within covered multifamily housing accommodations contain an accessible route into and through the housing accommodations; light switches, electrical outlets, thermostats, and other environmental controls are in accessible locations; reinforcements in the bathroom walls allow installation of grab bars; and kitchens and bathrooms are accessible by wheelchair; or

[[](11)[]] To discriminate against or deny a person access to, or membership or participation in any multiple listing service, real estate broker's organization, or other service, organization, or facility involved either directly or indirectly in real estate transactions, or to discriminate against any person in the terms or conditions of access, membership, or participation."

SECTION 6. Section 515-5, Hawaii Revised Statutes, is amended to read as follows:

"§515-5 Discriminatory financial practices. It is a discriminatory practice for a person, a representative of such person, or a real estate broker or salesperson, to whom an inquiry or application is made for financial assistance in connection with a real estate transaction or for the construction, rehabilitation, repair, maintenance, or improvement of real property, because of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection[:], or sealed eviction record:

(1) To discriminate against the applicant;

(2) To use a form of application for financial assistance or to make or keep a record or inquiry in connection with applications for financial assistance that indicates, directly or indirectly, an intent to make a limitation, specification, or discrimination unless the records are required by federal law;

(3) To discriminate in the making or purchasing of loans or the provision of other financial assistance for purchasing, constructing, improving, repairing, or maintaining a dwelling, or the making or purchasing of loans or the provision of other financial assistance secured by residential real estate; or

(4) To discriminate in the selling, brokering, or appraising of residential real property."

SECTION 7. Section 515-6, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Every provision in an oral agreement or a written instrument relating to real property that purports to forbid or restrict the conveyance, encumbrance, occupancy, or lease thereof to individuals because of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection, or sealed eviction record is void.

(b) Every condition, restriction, or prohibition, including a right of entry or possibility of reverter, that directly or indirectly limits the use or occupancy of real property on the basis of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection, or sealed eviction record is void, except a limitation, on the basis of religion, on the use of real property held by a religious institution or organization or by a religious or charitable organization operated, supervised, or controlled by a religious institution or organization, and used for religious or charitable purposes."

SECTION 8. Section 515-7, Hawaii Revised Statutes, is amended to read as follows:

"§515-7 Blockbusting. It is a discriminatory practice for a person, representative of a person, or a real estate broker or salesperson, for the purpose of inducing a real estate transaction from which the person, representative, or real estate broker or salesperson may benefit financially, because of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection[:], or sealed eviction record:

(1) To represent that a change has occurred or will or may occur in the composition of the owners or occupants in the block, neighborhood, or area in which the real property is located; or

(2) To represent that this change will or may result in the lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools in the block, neighborhood, or area in which the real property is located."

SECTION 9. Section 515-16, Hawaii Revised Statutes, is amended to read as follows:

"§515-16 Other discriminatory practices. It is a discriminatory practice for a person, or for two or more persons to conspire:

(1) To retaliate, threaten, or discriminate against a person because of the exercise or enjoyment of any right granted or protected by this chapter, or because the person has opposed a discriminatory practice, or because the person has made a charge, filed a complaint, testified, assisted, or participated in an investigation, proceeding, or hearing under this chapter;

(2) To aid, abet, incite, or coerce a person to engage in a discriminatory practice;

(3) To interfere with any person in the exercise or enjoyment of any right granted or protected by this chapter or with the performance of a duty or the exercise of a power by the commission;

(4) To obstruct or prevent a person from complying with this chapter or an order issued pursuant to this chapter;

(5) To intimidate or threaten any person engaging in activities designed to make other persons aware of, or encouraging such other persons to exercise rights granted or protected by this chapter;

(6) To threaten, intimidate, or interfere with persons in their enjoyment of a housing accommodation because of the race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection, or sealed eviction record of the persons, or of visitors or associates of the persons; or

(7) To print, circulate, post, or mail, or cause to be published a statement, advertisement, or sign, or to use a form of application for a real estate transaction, or to make a record or inquiry in connection with a prospective real estate transaction, that indicates, directly or indirectly, an intent to make a limitation or specification, or to discriminate because of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, [or] human immunodeficiency virus infection[.], or sealed eviction record."

PART IV

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1862
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII