STAND. COM. REP. NO. 418

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 Consumer Protection & Commerce, to which was referred H.B. No. 979 entitled:

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

begs leave to report as follows:

The purpose of this measure is to require landlords, lessors, or plaintiffs in a summary possession action to submit a general excise tax license in good standing as a condition to the issuance of a writ of possession.

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

Your Committee finds that the revenue generated from the leasing of real property is subject to the general excise tax. Your Committee further finds that, while residential rental properties serve a valuable role of providing housing, landlords should also fulfill their tax obligations. This measure imposes a requirement for the landlord to provide proof of compliance with the landlord's general tax obligations to prior to availing the landlord with the remedy of summary possession.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

Your Committee notes that the Judiciary, in its written testimony to your Committee, raised concerns that the measure would require the Judiciary to develop system modifications to its existing case management system to account for the general excise tax license information. As such, the Judiciary requested that the measure be effective no sooner than July 1, 2026, to allow for these necessary systems modifications.

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 H.B. No. 979, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 979, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

SCOT Z. MATAYOSHI, Chair