STAND. COM. REP. NO. 2474

Honolulu, Hawaii

RE: S.B. No. 3107

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 3107 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Allow a landlord, when processing an application to rent residential property, to charge an application screening fee up to a maximum of $25 for the cost of requesting a tenant report or credit report for a potential tenant; and

(2) Require landlords to refund any unused amount of the application screening fee and, upon request, provide a receipt of the fee and a copy of any report obtained via the screening process to the applicant.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Department of Human Services, Partners In Care, Community Alliance Partners, Hawai‘i Health and Harm Reduction Center, Catholic Charities Hawai‘i, and two individuals. Your Committee received testimony in opposition to this measure from the Hawai‘i Association of REALTORS and UNITE HERE! Local 5. Your Committee received comments on this measure from the Governor's Coordinator on Homelessness, EAH Housing, and one individual.

Your Committee finds that there are numerous barriers to accessing affordable housing for low-income households and individuals. One barrier is the imposition of screening fees by landlords. While the fee is intended to cover the cost of tenant screening, it often exceeds the actual cost to conduct the screening. This measure establishes a maximum fee that landlords may impose for tenant screening.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3107, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3107, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Housing,

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STANLEY CHANG, Chair