Hawaii-2024-HB2162-Introduced

SECTION 1. Chapter 127A, Hawaii Revised Statutes, is amended by adding nine new sections to be appropriately designated and to read as follows:

"§127A-A Residential tenants; suspension of rent collection. (a) Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, with respect to any residential dwelling unit in the area that is the subject of the proclamation, the landlord of the rental unit shall:

(1) Upon receipt of a written request from a tenant of the unit, suspend the collection of rent for the unit for a three-month period, beginning in the month following the landlord's receipt of the request;

(2) Upon receipt of a subsequent written request from a tenant of the unit, suspend the collection of rent for the unit for an additional three-month period, beginning at the end of the initial period of suspension;

(3) Accept the foregoing written requests in hardcopy or electronic format, according to the tenant's preference;

(4) Not require the tenant to prove economic hardship for the purposes of this section;

(5) Not require the tenant to pay any fees, including late fees, for the rent collection suspension; and

(6) Send the tenant written notice regarding the date the tenant is obligated to commence paying rent.

(b) After the end of the suspension period, the landlord may collect the balance of the rent suspended under this section; provided that the suspended rent shall only be collected as part of a periodic payment plan that is of the same duration as the total suspension period.

§127A-B Residential dwelling units; summary possession moratorium. Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, with respect to any residential dwelling unit in the area that is the subject of the proclamation:

(1) No court having jurisdiction for an action for summary possession pursuant to chapter 666 or other form of eviction action shall:

(A) Accept for filing any complaint or summons for possession of the unit;

(B) Enter a judgment or default judgment for a plaintiff for possession of the unit;

(D) Deny, upon the request of a defendant, a stay of execution or continuance of the summary possession action;

(2) Any deadline or time period for action by the defendant or any party in a summary possession action, including the date to answer a complaint, or to appeal a judgment, shall be extended; and

(3) No sheriff, deputy sheriff, or other law enforcement officer shall enforce or levy upon a writ of possession,

until the date specified in the proclamation, or if no date is specified, the expiration of the ninety-sixth hour after the effective date and time of the declaration, unless a supplementary proclamation extends the date.

§127A-C Residential property; foreclosure moratorium. Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, with respect to any residential property, as defined in section 667-1, that is in the area that is the subject of the proclamation:

(1) No creditor, mortgagee, or person having estate in the property if mortgaged, or a person authorized by a power of sale pursuant to chapter 667, or right of entry, or the attorney duly authorized by a writing under seal or the legal guardian or conservator of the mortgagee or person acting in the name of the mortgagee or person, shall:

(A) Cause publication of notice of a foreclosure sale pursuant to chapter 667;

(B) Exercise a power of sale;

(D) Initiate any action to possess the property;

(2) Any deadline or time period for action by a party in foreclosure proceedings, including any deadline to respond to a notice or to appeal a judgment, shall be extended; and

(3) No sheriff, deputy sheriff, or other law enforcement officer shall enforce or proceed with any foreclosure sale or action,

§127A-D Mortgage payments; deferment. (a) Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, with respect to any mortgaged property, as defined in section 667-1, that is in the area that is the subject of the proclamation, the mortgagee of the property shall:

(1) Upon receipt of a request from a mortgagor of the property, defer the collection of mortgage payments for three years; and

(2) Upon receipt of a subsequent request from a mortgagor of the property, defer the collection of mortgage payments for years for good cause, as determined by rules adopted pursuant to section 127A‑25.

(b) The repayment period for mortgages under deferment pursuant to this section shall be extended by a period of time equal to the entire period of deferment. The terms and conditions of each original mortgage, except for default, delinquency during deferment, and related fees or penalties, shall remain unchanged during the entire period of deferment.

(c) Any mortgagee granting a deferment under this section shall provide the requesting mortgagor written confirmation of the approved deferment, information about the deferment process, and instructions for requesting an extended deferment.

(d) This section shall not be construed to amend any mortgagor's property tax or insurance obligations related to the mortgaged property.

(e) Within one month of the effective date of Act , Session Laws of Hawaii 2024, the Hawaii emergency management agency shall:

(1) Notify mortgagors of real property within the State about the deferment program; and

(2) Publish on the agency's website information about the deferment program, including eligibility requirements.

§127A-E Small business commercial tenants; suspension of rent collection and summary possession. (a) Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, with respect to any rented commercial property in the area that is the subject of the proclamation, the landlord of the commercial property, if the tenant is a small business commercial tenant, shall:

(1) Upon receipt of a written request from the tenant, suspend the collection of rent for the property, beginning in the month following the landlord's receipt of the request; provided that the landlord shall not be obligated to suspend the collection for a period longer than six months;

(2) Accept the foregoing written requests in hardcopy or electronic format, according to the tenant's preference;

(3) Not require the tenant to prove economic hardship for the purposes of this section;

(4) Not require the tenant to pay any fees, including late fees, for the rent collection suspension; and

(5) Send the tenant written notice regarding the date the tenant is obligated to commence paying rent.

(c) If a small business commercial tenant's lease expires during the period that the proclamation is in effect, and the tenant wishes to remain on the property, the lease shall automatically renew at the current rate of rent, unless, before the proclamation was issued, the tenant expressed in writing the tenant's intent not to renew the lease, or the tenant agreed in writing to a different rate of rent. If the lease is not renewed, and the tenant wishes to remain on the property, the tenant shall continue to pay the landlord rent at the rate paid before the termination of the lease, but shall vacate the unit on the date specified in the proclamation, or if no date is specified, the expiration of the ninety-sixth hour after the effective date and time of the declaration, unless a supplementary proclamation extends the date. No late fees may be assessed or collected for rent accrued during the post-lease period.

(d) A landlord subject to this section shall be prohibited from initiating any action for, pursuing, or obtaining summary possession of the unit pursuant to chapter 666, or other form of eviction, until the ninetieth day after the expiration or rescission of the proclamation.

(e) For the purposes of this section, "small business commercial tenant" means any entity that:

(1) Is a corporation, nonprofit corporation, limited liability company, partnership, limited partnership; sole proprietorship, or other legal entity;

(2) Is owned and operated independently of any other corporation, nonprofit corporation, limited liability company, partnership, limited partnership; sole proprietorship, or other legal entity;

(3) Operates primarily within the State; and

(4) Is a lawful tenant of a lease into which the tenant and the respective landlord entered before the issuance of the proclamation described in subsection (a).

§127A-F Loan deferment. (a) Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, with respect to any student loan, commercial loan, or consumer loan (including any credit extension) of any borrower who resides in the area that is the subject of the proclamation, the lender or holder of the loan shall:

(1) Upon receipt of a written request from the borrower, defer the collection of loan payments; provided that the lender or holder shall not be obligated to suspend the collection for a period longer than six months;

(2) Accept the foregoing written request in hardcopy or electronic format, according to the borrower's preference; and

(3) Not require the borrower to prove economic hardship for the purposes of this section.

(b) The repayment period for loans under deferment pursuant to this section shall be extended by period of time equal to the entire period of deferment. The terms and conditions of each original loan, except for default, delinquency during deferment, and related fees or penalties, shall remain unchanged during the entire period of deferment. During any period of loan deferment under this section, no interest shall accrue on the respective loan.

§127A-G Credit reporting agencies. (a) Whenever the governor issues a proclamation declaring a state of emergency for the entire State or any portion thereof, or a mayor issues a proclamation declaring a local state of emergency for the county or any portion thereof, any person who resides in the area that is the subject of the proclamation may contact any:

(1) Consumer reporting agency and request exclusion of any adverse information obtained by the agency; and

(2) User of a consumer report for the person and request exclusion of consideration of any adverse information within the consumer report,

regarding the person's actions from the effective date of the proclamation through the ninetieth day after the effective date of the proclamation.

(b) Any consumer reporting agency or user of a consumer report that receives a request from a person pursuant to subsection (a) shall:

(1) Respond to the requestor within five days; and

(2) Honor the person's request.

(c) No consumer reporting agency that receives a request from a person pursuant to subsection (a) shall assess a fee from the person for the request.

§127A-H Associations; insurance. No association as defined in section 421J-2 or 514B-3 shall require any unit owner to purchase insurance for emergencies or disasters likely to be addressed by proclamations under this chapter, except to the extent the association is authorized by the association's governing documents or applicable federal or state law.

§127A-I Penalties for certain actions. Any violation of any of the provisions of sections 127A-A through 127A-H shall constitute unfair methods of competition and unfair and deceptive acts or practices in the conduct of any trade or commerce under section 480-2 and shall be subject to a civil penalty as provided in section 480-3.1."

SECTION 2. Section 127A-14, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Any proclamation issued under this chapter that fails to state a time at which it will take effect shall take effect at twelve noon of the day on which it takes effect. A state of emergency and a local state of emergency shall terminate automatically sixty days after the issuance of a proclamation of a state of emergency or local state of emergency, respectively, or by a separate proclamation of the governor or mayor, whichever occurs first."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2162
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII