THE SENATE	S.B. NO.	2338
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO HOMESTEAD EXEMPTIONS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the coronavirus disease 2019 (COVID-19) pandemic and governmental responses to contain the spread of COVID-19 have precipitated an economic contraction on a global, national, and local scale.  In Hawaii, this economic contraction ballooned the State's unemployed population from its 2019 level of 2.8 per cent to its peak level of 23.8 per cent in May 2020.  Additionally, nearly half of the households in the State have seen a decline in income due to the COVID-19 pandemic.  This economic contraction has exacerbated the economic strain felt by Hawaii families due to the State's high cost of living.  The percentage of persons who are not current on their mortgage loans more than doubled from 2019 to 2020.  This will likely lead to a surge of foreclosures in the State.

      The legislature further finds that the amount of the homestead exemption in the State has not been adjusted since 1978; meanwhile, $1 in 1978 had the same buying power of more than $4 in 2020.

     The purpose of this Act is to require the legislative reference bureau to conduct a study to determine the appropriate amount of an increase to the homestead exemption.

     SECTION 2.  (a)  The legislative reference bureau shall conduct a study to determine the appropriate amount of an increase to the homestead exemption under the United States Bankruptcy Code.

     (b)  The study shall examine the State's real property exemption for a person's principal residence in bankruptcy proceedings, pursuant to section 651-92, Hawaii Revised Statutes, and shall include the following:

     (1)  A breakdown and comparison of real property and homestead exemptions in states similar in size to the State or with a similar tax structure;

     (2)  A comparison of how real property and homestead exemptions are applied in other states, comparing their similarities and differences to the State's homestead exemption;

     (3)  Any fiscal implications to the State, counties, and private sectors as a result of an increased homestead exemption; and

     (4)  An assessment of the number and frequency of claims for the homestead exemption in the State.

     (c)  In conducting the study, the legislative reference bureau may seek input from any individual or entity the legislative reference bureau deems necessary to complete the study.

     (d)  The legislative reference bureau shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Legislative Reference Bureau; Study; Homestead Exemption; Bankruptcy Proceedings

 

Description:

Requires the Legislative Reference Bureau to conduct a study to determine an appropriate increase to the homestead exemption in bankruptcy proceedings.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.