STAND. COM. REP. NO. 1813-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2396

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 2396, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the Department of Commerce and Consumer Affairs to establish and maintain a registry of on-island agents designated by an absentee owner or landlord;

(2) Require absentee owners and landlords to:

(A) Designate and register on-island agents; and

(B) Provide the on-island agent's name and contact information to the tenant;

(3) Establish a penalty for an absentee owner's or landlord's failure to comply with the requirements relating to on-island agents; and

(4) Require condominium unit owners who do not live on the island on which the unit is located to designate an on-island agent and provide the condominium association's board of directors with the name and current address of the on-island agent.

Your Committee received testimony in support of this measure from the Hawaiʻi Association of REALTORS; and three individuals. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs and Libertarian Party of Hawaii.

Your Committee finds that tenants, condominium associations, and regulatory agencies often experience difficulty identifying and contacting absentee owners or landlords when issues affecting health, safety, habitability, or legal compliance arise. Your Committee further finds that the absence of a clearly identified on‑island agent can delay necessary action, hinder enforcement, and place an undue burden on tenants and property managers seeking timely resolution of problems.

Your Committee additionally finds that requiring absentee owners and landlords to designate and register an on‑island agent, and to keep that information current and publicly accessible, promotes accountability and transparency while facilitating effective communication and enforcement. This measure establishes an agent registry and strengthens agent designation requirements, which advances consumer protection, supports tenant rights, and improves compliance with the State's residential landlord‑tenant laws.

Your Committee has amended this measure by:

(1) Specifying that an absentee owner or landlord has thirty days to:

(A) Register an on-island agent with the Department of Commerce and Consumer Affairs from the date of the agent's designation; and

(B) Notify the Department of any change in either the identity of the on-island agent or the property managed by the on-island agent;

(2) Deleting enforcement responsibilities assigned to the Department of Commerce and Consumer Affairs relating to an absentee owner's or landlord's failure to designate, disclose, or register an on-island agent, thus making the existing statutory remedy available to tenants applicable in such situations;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2396, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2396, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

SCOT Z. MATAYOSHI, Chair