CONFERENCE COMMITTEE REP. NO. 42

 

Honolulu, Hawaii

                 , 2017

 

RE:    S.B. No. 119

       S.D. 1

       H.D. 1

       C.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sirs:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 119, S.D. 1, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO PAYMENT OF RENT,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to:

 

     (1)  Require landlords to disclose in writing the tenant's ability to establish a new due date for rent payment if the tenant receives public assistance; and

 

     (2)  Establish a cap of ten percent on late rent payment fees, applicable to all new rental agreements and rental agreement renewals entered into on or after the effective date of this measure.

 

     Your Committee on Conference finds that existing law does not set limitations on the amount of late fees that a landlord may charge a tenant, which has resulted in a wide variance in amounts charged and has led to outrageous abuses.  Although this measure caps any late charges that may be provided in a rental agreement at ten percent, your Committee on Conference finds that an eight percent cap is more appropriate.  An amendment to this measure is therefore necessary.

 

     Your Committee on Conference further finds that existing law requires a landlord to honor a tenant's request to establish a new due date if the tenant is receiving public assistance.  This measure requires this right to be disclosed in writing to all tenants.  However, your Committee on Conference notes that, rather than requiring all landlords to disclose this requirement to all tenants, a more appropriate approach is to ensure that providers of rental assistance develop a form that can be provided to recipients of public assistance.

 

     Accordingly, your Committee on Conference requests that the Office of Consumer Protection, Real Estate Commission, and public housing entities, including but not limited to the Hawaii Public Housing Authority, collaborate to develop a form or informational brochure that can be provided to tenants who receive public assistance, and which informs such tenants of their rights, including that a tenant receiving public assistance has the ability to move the due date to a period after which the tenant receives a public assistance payment.

 

     Your Committee on Conference has amended this measure by:

 

     (1)  Deleting language that would have required a landlord to disclose in writing a tenant's ability to establish a new due date for rent payment if the tenant receives public assistance;

 

     (2)  Establishing a cap of eight percent, rather than ten percent, on late rent payment fees; and

 

     (3)  Inserting an effective date of November 1, 2017.

 

     Finally, your Committee on Conference notes that, after this amended measure goes into effect, the Office of Consumer Protection is requested to provide the Legislature with feedback regarding the cap on late rent payment fees established by this amended measure, including whether this cap has impacted the types of complaints regarding late fees received by the Office of Consumer Protection.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 119, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 119, S.D. 1, H.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

 

ON THE PART OF THE SENATE

 

____________________________

ROY M. TAKUMI

Chair

 

____________________________

ROSALYN H. BAKER

Chair