STAND. COM. REP. NO. 691

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1116

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 1116 entitled:

 

"A BILL FOR AN ACT RELATING TO RENTAL APPLICATION FEES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to regulate the imposition of rental application fees by landlords. 

 

     Specifically, this measure requires landlords to inform prospective tenants of their right to dispute inaccurate tenant screening report information.

 

     Your Committee received testimony in support of this measure from Legal Aid Society of Hawaii and one individual.  The Hawaii Association of Realtors submitted testimony in opposition to this measure.

 

     Your Committee finds that landlords frequently charge prospective tenants for the opportunity to apply for rental housing units.  These fees are frequently not returned to unsuccessful applicants, which is a serious detriment to many low-income renters.  Also, many tenants are unaware of their rights under the federal fair reporting laws that allow applicants to dispute inaccurate information in their credit reports.  The intent of this measure is to require landlords to inform tenants of their right to dispute inaccurate credit information that may negatively impact their ability to be offered a rental unit.

 

     Your Committee has amended this measure, upon the recommendation of the Legal Aid Society of Hawaii, by:

 

     (1)  Specifying that the requirements of this measure shall not apply to landlords who rent three or less units;

 

     (2)  Specifying that when the application fee is not refunded to the applicant, the landlord must provide a written explanation in sufficient detail explaining the reasons an applicant did not receive the unit; and

    

     (3)  Making technical, nonsubstantive changes for the purposes of clarity and style.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1116, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1116, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

BRIAN T. TANIGUCHI, Chair