RELATING TO THE RESIDENTIAL LANDLORD-TENANT CODE.

HB638

HOUSE OF REPRESENTATIVES

H.B. NO.

638

THIRTY-THIRD LEGISLATURE, 2025

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.
�

Individuals and families must often apply to as many open rentals as
possible, which can cost hundreds of dollars.
�

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 authorizes an
application screening fee for rental applications and requires costs associated
with vetting an application to be used only for that purpose and the return to
the applicant of any remaining fees.
�

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 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 comprehensive reusable tenant screening
report is available; and

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(2)
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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 agency 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 criminal background check or credit report.
�
Prohibits a landlord or the landlord's agent
from charging an application fee if a 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.