Bill Text: HI HB581 | 2021 | Regular Session | Introduced
Bill Title: Relating To Commercial Tenant Protection.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2021-01-27 - Referred to PDP/ECD, CPC, FIN, referral sheet 1 [HB581 Detail]
Download: Hawaii-2021-HB581-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
581 |
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THIRTY-FIRST LEGISLATURE, 2021 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to commercial tenant protection.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 127A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§127A- Commercial
tenant protection. (a) It shall be unlawful, during the effective period
of any emergency proclamation and for ninety days following the termination of that
effective period, for a commercial landlord to initiate or to continue proceedings
to collect past-due rent from an impacted commercial tenant or to evict an impacted
commercial tenant if the impacted commercial tenant has served written notice to
the commercial landlord of the tenant's status as an impacted commercial tenant.
(b) The unpaid balance of any rent that has accrued
on the commercial tenancy of any impacted commercial tenant during the effective
period of an emergency proclamation shall be due at the end of the month containing
the date twelve months after the end of the effective period of the final emergency
proclamation unless the commercial landlord and the impacted commercial tenant has
reached an agreement to pay the balance at a later date.
(c) An impacted commercial tenant who wishes to modify
the tenant's commercial lease during the effective period of an emergency proclamation
or within sixty days after the end of the effective period may engage in good faith
negotiations with the tenant's landlord to modify the rent or other economic requirement
of the lease. The impacted commercial tenant
may initiate these negotiations by serving written notice, including notice of the
tenant's status as an impacted commercial tenant, to the commercial landlord. If the impacted commercial tenant and the commercial
landlord do not reach a mutually satisfactory agreement within thirty days of the
landlord's receipt of notice, the tenant may terminate the lease by serving notice
of termination to the landlord. If the impacted
commercial tenant terminates the lease, the tenant shall have fourteen days from
the date of service to vacate the property; provided that if the impacted commercial
tenant has vacated the property within those fourteen days, the following shall
apply:
(1) The lease shall
terminate;
(2) No further liability
for rent, fees, or costs shall accrue under the lease;
(3) Any third-party
guaranties associated with the lease shall terminate and shall no longer be enforceable;
and
(4) In lieu of any other
damages, the impacted commercial tenant shall, within twelve months of vacating
the property, pay the landlord all of the following:
(A) Three
months of rent as specified under the most recent terms of the lease or the actual
amount of unpaid rent that accrued during the effective period of any emergency
proclamation, whichever is less; and
(B) All
unpaid rent that accrued prior to the effective period of the initial emergency
proclamation.
If the impacted commercial tenant and the commercial
landlord reach an agreement pursuant to this subsection, the tenant shall not have
a subsequent option to terminate the lease under this subsection at a later date.
(d) Remedies provided under this section are cumulative
and do not preclude any remedies available to tenants under any other law.
(e) A commercial landlord who willfully violates this
section shall be liable to the impacted commercial tenant in a civil action for
the following:
(1) Actual damages to
the tenant;
(2) An amount no less
than $250 and no more than $2,000 for each incident constituting a violation; and
(3) Reasonable attorney's
fees arising from the civil action.
(f) For the purposes of this section:
"Commercial landlord" means
any person, business, or other entity that owns or manages commercial property,
or their agent.
"Commercial tenant" means
a tenant occupying commercial real property pursuant to a lease including but not
limited to businesses or nonprofit organizations.
"Emergency proclamation"
means an emergency proclamation issued by the office of the governor relating to
coronavirus disease 2019 (COVID-19).
"Impacted commercial tenant"
means a commercial tenant that operates primarily in Hawaii, occupies commercial
real property pursuant to a lease, and meets one of the following criteria:
(1) The commercial tenant
has experienced a decline of twenty per cent or more in average monthly revenue
over the two most recent calendar months when compared to:
(A) The
commercial tenant's average monthly revenue for the two calendar months before a
state or local government shelter-in-place order took effect; or
(B) The
commercial tenant's average monthly revenue for the same calendar months in 2019;
(2) The commercial tenant
was prevented from opening or was required to delay opening the tenant's business
because of a state of emergency relating to COVID-19; or
(3) The commercial tenant has suffered a decline of fifteen per cent or more in capacity due to compliance with an official public health and safety guideline for preventing the spread of COVID-19."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval and shall be repealed on July 1, 2022.
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INTRODUCED BY: |
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Report Title:
Commercial Tenants Protection; Eviction Moratorium; Rental Deferment
Description:
Prohibits a commercial landlord from initiating or continuing any action to evict or collect unpaid rent from a commercial tenant that has been adversely impacted by the economic effects of COVID-19 or official measures intended to mitigate the spread of COVID-19. Sunsets 7/1/2022.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
