STAND. COM. REP. NO. 2880

Honolulu, Hawaii

RE: S.B. No. 2396

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

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

"A BILL FOR AN ACT RELATING TO PROPERTY,"

begs leave to report as follows:

The purpose and intent of this measure is to:

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

(2) Require an absentee owner or landlord to register any agents managing a property on their behalf with the Department of Commerce and Consumer Affairs;

(3) Prohibit an absentee owner or landlord from designating a tenant as an agent;

(4) Establish penalties for an absentee owner or landlord that fails to register an agent with the Department of Commerce and Consumer Affairs or fails to designate an agent; and

(5) Require member owners of a condominium association who live outside the State or on another island of the State from where the unit is located to provide the association's managing agent, resident agent, or board with the contact information of a designated on-island agent for the unit, which shall be included on the address list maintained by the association.

Your Committee received testimony in support of this measure from the Hawaiʻi Association of REALTORS, Palehua Townhouse Association, and three individuals.

Your Committee received testimony in opposition to this measure from the Hawaii Council of Community Associations and two individuals.

Your Committee finds that compliance with existing law requiring owners and landlords to designate an agent residing on the same island where a rental unit is located may be inconsistent, which can result in challenges for tenants needing to resolve maintenance issues or respond to emergencies. This measure would strengthen the regulatory framework for absentee owners and landlords to provide improved consumer protections for tenants.

Your Committee has amended this measure by:

(1) Deleting language that would have required a member owner of a condominium association who lives outside the State or on another island of the State from where the unit is located to provide the association's managing agent or resident agent with the contact information of a designated on-island agent for the unit;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

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

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

________________________________

JARRETT KEOHOKALOLE, Chair