STAND. COM. REP. NO. 683-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2188

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 H.B. No. 2188 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to require, beginning November 1, 2026, landlords to accept comprehensive reusable tenant screening reports, if made available by an applicant, and prohibit application fees in such cases.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and Office of Hawaiian Affairs. Your Committee received comments on this measure from the Hawaiʻi Association of REALTORS.

Your Committee finds that Act 200, Session Laws of Hawaii 2023, implemented regulations regarding application screening fees for rental applications. Among other things, Act 200 required a landlord to only charge an application screening fee for applicants of majority age, or an emancipated minor, and required the return of any amount of the fee not used for the purposes of obtaining information about the applicant.

Your Committee further finds that the affordable rental shortage creates significant competition for rental units in the State. This leads to persons applying to multiple open rentals, which can cumulatively cost those persons hundreds of dollars. This measure establishes a process to lessen the cost burden on applicants by requiring landlords to accept comprehensive reusable tenant screening reports, if made available by an applicant.

Your Committee has amended this measure by:

(1) Establishing remedies for a landlord's or landlord's agent's refusal to accept comprehensive reuseable tenant screening reports, including damages owed to the applicant and fines enforced by the Office of Consumer Protection;

(2) Allowing a landlord or landlord's agent to charge an application screening fee to obtain information not contained in a comprehensive reuseable tenant screening report, but prohibiting this fee from being used for updating the information in a comprehensive reuseable tenant screening report received within thirty days from the date the report was prepared;

(3) Specifying that a comprehensive reusable tenant screening report must be in compliance with the federal Fair Credit Reporting Act;

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

(5) 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 H.B. No. 2188, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2188, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

SCOT Z. MATAYOSHI, Chair