RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE.

HB2221

HOUSE OF REPRESENTATIVES

H.B. NO.

2221

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1
.
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The legislature finds that there are numerous
barriers to accessing affordable housing for low-income households and people
experiencing homelessness.
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There is
significant competition for rental units in the State, with landlords often
receiving multiple applications per unit.
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Individuals and families must often apply to as many open rentals as
possible, which can cost hundreds of dollars.
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While the legislature recognizes that landlords and their agents need to
collect application fees in order to vet all applicants, the legislature
believes that the costs of multiple applications for prospective tenants can
result in significant economic hardship, especially in a tight housing market.

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The
legislature further finds that to help individuals and families seeking rental
housing in the State, the legislature enacted Act 200, Session Laws of Hawaii
2023, which authorized application screening fees for rental applications and
required costs associated with vetting an application to be used only for that
purpose and to return to the applicant any remaining fees.
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However, an applicant may still be required
to submit multiple application fees to landlords or their agents who are using
those fees to obtain similar information.
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Allowing an applicant to receive a certified copy of certain information
to provide to another landlord or the landlord's agent will further reduce the
financial burden of applying for rental units and reduce the work of landlords
and their agents to obtain certain information.

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The
legislature additionally finds that certain tenant screening companies already
allow tenants to share their reports with as many landlords as they choose for
thirty days at no additional cost.
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Requiring landlords and their agents to accept these reports would
reduce the cost to the applicants.
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Companies that offer these reusable tenant screening reports securely
transmit reports to landlords upon the applicant's request, protecting
sensitive data, ensuring privacy for the applicant, and agreeing to bear the
risk of failure to do so.

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Accordingly,
the purpose of this Act is to:

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(1)
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Prohibit a landlord or the 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 recent criminal
background check or credit report;

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

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

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SECTION

2
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Section 521-46,
Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read
as follows:

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(a)
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When a landlord or the landlord's agent
receives a request from an applicant to rent a dwelling unit, the landlord or
the landlord's agent may charge the applicant an application screening fee at
the time the application is processed for the dwelling unit to cover the costs
of obtaining information about the applicant; provided that [
a
]
:

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(1)
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A
landlord or the landlord's
agent shall only charge an application screening fee for an applicant who is
eighteen years of age or older or an emancipated minor[
.
]
;

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(2)
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If an applicant provides a landlord
or the landlord's agent with a certified copy of the applicant's criminal
background check or credit report received within thirty days from another
landlord or that landlord's agent, the landlord or the landlord's agent shall
not charge an application fee to cover the costs of obtaining another criminal
background check or credit report; and

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(3)
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If a comprehensive reusable tenant
screening report is made available to the landlord or the landlord's agent and
is received within thirty days, the landlord or the landlord's agent shall not
charge an application fee.

Information
sought by the landlord or the landlord's agent charging the fee may include
personal reference checks, tenant reports, criminal background checks, and
credit reports produced by any consumer credit reporting agency.

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(b)
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Upon request by the applicant, a landlord or
the landlord's agent shall provide to the applicant a:

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(1)
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Receipt for payment of the application
screening fee; [
and
]

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(2)
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Breakdown of costs covered by the
application screening fee[
.
]
; and

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(3)
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Certified copy of the applicant's
criminal background checks and credit reports that are less than thirty days
old.
"

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SECTION
3.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION
4.
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This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

Rental
Application Screening Fee; Criminal Background Check; Credit Report; Certified
Copies; Reusable Tenant Screening Report

Description:

Prohibits
a landlord or the 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 recent criminal background check or credit report.
�
Prohibits a landlord or the landlord's agent
from charging an application fee if a recent comprehensive reusable tenant
screening report is available.
�
Requires
a landlord or the landlord's agent to provide, upon request, a certified copy
of an applicant's criminal background check or credit report.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.