HB1863 HD1

SECTION 1. The legislature finds that stable housing yields a multitude of opportunities and stronger outcomes for children, youth, and adults. Due to the lack of housing stability, young people are more vulnerable to mental health problems, developmental delays, and poor cognitive outcomes. Furthermore, there is a correlation between housing instability and trauma. Housing stability additionally improves educational outcomes by reducing the likelihood of repeating a grade and dropping out of school.

The legislature further finds that while rentals satisfy many Hawaii residents' need for stable housing, tenants have very little support when facing eviction in the State. In its 2018 report, "Evicted in Hawai‘i: Lives Hanging in the Balance", Lawyers for Equal Justice found that approximately seventy per cent of landlords are represented by counsel in eviction proceedings, whereas only five per cent of tenants are represented. This disparity in representation results in eighty-five to ninety-five per cent of eviction cases ending in the eviction of the tenant.

The legislature additionally finds that representation in eviction proceedings can substantially increase the likelihood for a tenant to remain in the home. Research suggests that tenants who are represented in eviction proceedings are six to ten times more likely to remain in the home. In New York City, where low-income tenants have full and free access to counsel in eviction proceedings, eighty-six per cent of represented tenants were able to remain in their homes.

The legislature also finds that access to representation may be substantially increased by permitting lay persons to advocate for tenants in court. Under existing state law, landlords may be represented by property managers. However, there is no corresponding right to lay advocacy for tenants. The legislature notes that in February 2021, a first of its kind tenant-advocate pilot project was established by the Hawaii supreme court to assist self-represented litigants in landlord-tenant disputes, but this project is currently limited to the first circuit.

Accordingly, the purpose of this Act is to increase access to representation for residential tenants in actions or proceedings for possession by:

(1) Providing for state-funded access to legal services for residential tenants, with full access to each income-eligible tenant available by July 1, 2027;

(2) Authorizing attorneys, paralegals, and law students to provide the legal services; and

(3) Appropriating funds to the judiciary to contract with legal service organizations or clinical training programs to carry out this purpose.

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

"§666- Access to representation; representation by whom; no private right of action. (a) Subject to the availability of moneys appropriated for the purposes of this section, the judiciary shall contract with designated organizations for the provision of legal services to residential tenants in any action or proceeding for possession as follows:

(1) Each residential tenant shall receive access to brief legal assistance no later than the residential tenant's first scheduled appearance in an action or proceeding, or as soon thereafter as is practicable; and

(2) No later than July 1, 2027, each income-eligible tenant shall receive access to full legal representation no later than the income-eligible tenant's first scheduled appearance in an action or proceeding, or as soon thereafter as is practicable;

provided that the legal services rendered pursuant to this section shall be at no cost to the tenant.

(b) The legal services rendered by designated organizations pursuant to subsection (a) may be provided by:

(1) Attorneys;

(2) Paralegals; or

(3) Law students;

provided that paralegals and law students shall be under the general supervision of an attorney employed with or contracted by the designated organization.

(c) Notwithstanding any provision of law requiring the licensure of persons practicing in any court, the persons listed under subsection (b) may appear on behalf of residential tenants in district court.

(d) Nothing in this section or the administration or application of this section shall be construed to create a private right of action on the part of any person or entity against the judiciary or State.

(e) For purposes of this section:

"Brief legal assistance" means individualized legal assistance provided in a single consultation by a designated organization to a tenant in connection with an action or proceeding for possession.

"Designated organization" means a nonprofit organization or association or clinical training program that has the capacity to provide legal services and is designated by the judiciary pursuant to this section.

"Full legal representation" means ongoing legal representation provided by a designated organization to an income-eligible tenant and all legal advice, advocacy, and assistance associated with such representation. "Full legal representation" includes the filing of a notice of appearance on behalf of the income-eligible tenant in an action or proceeding for possession.

"General supervision" includes paralegals and law students appearing on behalf of tenants in court without the physical presence of the supervising attorney.

"Income-eligible tenant" means a residential tenant whose annual gross household income is no more than eighty per cent of the area median income for a family of the same size.

"Legal services" means brief legal assistance or full legal representation."

SECTION 3. Section 605-2, Hawaii Revised Statutes, is amended to read as follows:

"§605-2 Attorneys; license required. Except as provided by the rules of court, no person shall be allowed to practice in any court of the State unless that person has been duly licensed so to do by the supreme court; provided that nothing in this chapter shall prevent any person, plaintiff, defendant, or accused, from appearing in person before any court, and there prosecuting or defending that person's, plaintiff's, defendant's, or accused's own cause, without the aid of legal counsel; provided further that in the district courts sections 605-13 [~~and~~], 633-28, and 666- shall apply."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the judiciary to contract for the representation services required by this Act.

The sum appropriated shall be expended by the judiciary for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on January 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	1863
THIRTY-FIRST LEGISLATURE, 2022		H.D. 1
STATE OF HAWAII