STAND. COM. REP. NO. 893

Honolulu, Hawaii

, 2025

RE: H.B. No. 979

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 979, H.D. 1, entitled:

"A BILL FOR AN ACT RELATED TO SUMMARY POSSESSION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require that a current general excise tax license number for any rental income be filed with the complaint to the court for summary possession proceedings; and

(2) Require the Judiciary to submit an annual list of certain information regarding summary possession cases to the Department of Taxation.

Your Committee received testimony in support of this measure from the Hawaiʻi Appleseed Center for Law & Economic Justice. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Judiciary; Department of Taxation; and Tax Foundation of Hawaii.

Your Committee finds that some landlords currently rent properties without proper registration, avoiding tax obligations while still utilizing the legal system to evict tenants. This measure seeks to close that loophole by requiring landlords to present a valid general excise tax license before initiating summary possession proceedings for unpaid rent, preventing landlords from taking advantage of state resources while failing to meet their own financial responsibilities.

Your Committee recommends this measure be effective on July 1, 2026, to provide time for the Department of Taxation to implement the requirements of this measure.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 979, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair