STAND. COM. REP. NO. 1890-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2877

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2877, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE,"

begs leave to report as follows:

The purpose of this measure is to regulate the process for application screening fees for dwellings made available for rent under the Residential Landlord-Tenant Code.

Your Committee received comments on this measure from the Governor's Coordinator on Homelessness, Department of Commerce and Consumer Affairs, Department of Human Services, St. Michael the Archangel Church, Catholic Charities Hawai‘i, and Hawai‘i Health & Harm Reduction Center.

Your Committee finds that rental units serve a vital role in ensuring residents of the State have housing. However, under existing law, prospective tenants are not protected from and are susceptible to being assessed excessively large application fees. These application fees can range from $50 to $100, although the actual cost of performing any of the necessary background or credit checks on a prospective tenant ranges from $10 to $25. This measure will curb this unscrupulous practice by requiring unused application fees to be returned to applicants.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2877, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair