STAND. COM. REP. NO. 382

Honolulu, Hawaii

RE: S.B. No. 1662

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1662 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) Prohibit a landlord or landlord's agent from charging an application fee for a criminal background check or credit report if an applicant provides a certified copy of a criminal background check or credit report;

(2) Prohibit a landlord or landlord's agent from charging an application fee if a comprehensive and reusable tenant screening report is available; and

(3) Require a landlord or landlord's agent to provide, upon request, a certified copy of an applicant's criminal background check or credit report.

Your Committee received testimony in support of this measure from two individuals.

Your Committee received comments on this measure from the Hawaiʻi Association of REALTORS.

Your Committee finds that when a prospective tenant completes a rental application, landlords and property managers sometimes rely on a tenant screening company to assist with the screening process, which can include reviewing eviction history, verifying employment, verifying personal references, and other records to properly vet tenants. Your Committee further finds that, while the tenant screening process is not limited to just credit reports and criminal background checks, some tenant screening companies already allow tenants to have their reports securely transmitted to other landlords for up to thirty days at no additional cost. By requiring landlords and their agents to accept certified copies of securely transmitted tenant screening reports, this measure helps reduce the cost to the applicants.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) 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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1662, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1662, S.D. 1, and be referred to your Committee on Judiciary.

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

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JARRETT KEOHOKALOLE, Chair