SB 2210: HCRC; Discrimination; Source of Income; Prohibited; Penalties; Position; Appropriation

A BILL FOR AN ACT

RELATING TO HOUSING DISCRIMINATION.

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

     SECTION 1.  The legislature finds that the federal housing choice voucher program, also known as section 8 of the United States Housing Act of 1937, as amended, provides federally‑funded, tenant-based vouchers to low-income households.  Once a household receives a section 8 voucher, the challenge is finding a landlord who is willing to accept the voucher.  Federal law does not require landlords to accept housing choice vouchers as a form of payment for rent.  Refusal to rent to voucher holders is a practice known as source of income discrimination, which disproportionately affects renters of color, renters with disabilities, elderly renters, and women.  While the Fair Housing Act protects these groups from discrimination based on their identities, it does not protect them from source of income discrimination.

     To protect renters with housing assistance vouchers, the legislature passed Act 310, Session Laws of Hawaii 2022, which prohibits source of income discrimination in rental transactions and imposes civil penalties on a landlord who commits a source of income discriminatory practice.  The legislature finds that the Hawaii civil rights commission is tasked with receiving, investigating, and conciliating complaints alleging any unlawful discriminatory practice based on discrimination, including discrimination in housing; however, source of income discrimination is not currently included.  The legislature believes that source of income discrimination should be added to the commission's scope of enforcement.

     Accordingly, the purpose of this Act is to authorize the Hawaii civil rights commission to prosecute discrimination based on source of income in housing cases.

     SECTION 2.  Section 368-3, Hawaii Revised Statutes, is amended to read as follows:

     "§368-3  Powers and functions of commission.  The commission shall have the following powers and functions:

     (1)  To receive, investigate, and conciliate complaints alleging any unlawful discriminatory practice under part I of chapter 489, chapter 515, [and] part I of chapter 378, and chapter 368F, and complaints filed under this chapter, and conduct proceedings on complaints alleging unlawful practices where conciliatory efforts are inappropriate or unsuccessful;

     (2)  To hold hearings and make inquiries, as it deems necessary, to carry out properly its functions and powers, and for the purpose of these hearings and inquiries, to administer oaths and affirmations, conduct depositions, compel the attendance of parties and witnesses and the production of documents by the issuance of subpoenas, examine parties and witnesses under oath, require answers to interrogatories, and delegate these powers to any member of the commission or any person appointed by the commission for the performance of its functions;

     (3)  To commence civil action in circuit court to seek appropriate relief, including the enforcement of any commission order, conciliation agreement, or predetermination settlement;

     (4)  To issue the right to sue to a complainant;

     (5)  To order appropriate legal and equitable relief or affirmative action when a violation is found;

     (6)  To issue publications and results of investigations and research that, in its judgment, will tend to promote goodwill and minimize or eliminate discrimination in employment, housing, and public accommodations;

     (7)  To submit annually to the governor and the legislature a written report of its activities and recommendations for administrative or statutory changes required to further the purposes of this chapter;

     (8)  To appoint an executive director, deputy executive director, attorneys, and hearings examiners who shall be exempt from chapter 76, and investigators and other necessary support personnel who shall be subject to chapter 76.  Section 28-8.3 notwithstanding, an attorney employed by the commission as a full-time staff member may represent the commission in litigation, draft legal documents for the commission, provide other necessary legal services to the commission, and shall not be deemed to be a deputy attorney general; and

     (9)  To adopt rules under chapter 91."

     SECTION 3.  Section 368-17, Hawaii Revised Statutes, is amended to read as follows:

     "§368-17  Remedies.  (a)  The remedies ordered by the commission or the court under this chapter may include compensatory and punitive damages and legal and equitable relief, including, but not limited to:

     (1)  Hiring, reinstatement, or upgrading of employees with or without back pay;

     (2)  Admission or restoration of individuals to labor organization membership, admission to or participation in a guidance program, apprenticeship training program, on-the-job training program, or other occupational training or retraining program, with the utilization of objective criteria in the admission of persons to those programs;

     (3)  Admission of persons to a public accommodation or an educational institution;

     (4)  Sale, exchange, lease, rental, assignment, or sublease of real property to a person;

     (5)  Extension to all persons of the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of the respondent;

     (6)  Reporting as to the manner of compliance;

     (7)  Requiring the posting of notices in a conspicuous place that the commission may publish or cause to be published setting forth requirements for compliance with civil rights law or other relevant information that the commission determines necessary to explain those laws;

     (8)  Payment to the complainant of damages for an injury or loss caused by a violation of part I of chapter 489, chapter 515, part I of chapter 378, or this chapter, including a reasonable attorney's fee;

     (9)  Payment to the complainant of all or a portion of the costs of maintaining the action before the commission, including reasonable attorney's fees and expert witness fees, when the commission determines that award to be appropriate; and

    (10)  Other relief the commission or the court deems appropriate.

     (b)  Section 386-5 notwithstanding, a workers' compensation claim or remedy does not bar relief on complaints filed with the commission.

     (c)  Notwithstanding subsections (a) and (b), the commission may:

     (1)  Subject a landlord that violates the provisions of chapter 368F to a civil penalty in an amount not to exceed $2,000 if determined by the commission to have violated chapter 368F for the first time within one year of the occurrence of the alleged violation;

     (2)  Impose a $2,500 penalty against a landlord for any subsequent violation; and

     (3)  Order any injunctive or other equitable relief as it deems proper;

provided that no landlord shall be fined more than once for the same violation under this section; provided further that no party shall be awarded attorneys' fees or costs in any action under this subsection.

     All fines collected under this subsection shall be deposited into the general fund."

     SECTION 4.  Section 368F-4, Hawaii Revised Statutes, is repealed.

     ["[§368F-4]  Remedies.  (a)  A landlord that violates any provisions of this chapter may be subject to a civil penalty in an amount not to exceed $2,000 if determined by the court to have violated this chapter for the first time within one year of the occurrence of the alleged violation.

     (b)  The court may impose a $2,500 penalty against a landlord for any subsequent violation of this chapter by the landlord.

     (c)  The court may also order any injunctive or other equitable relief as it deems proper.

     (d)  No landlord shall be fined more than once for the same violation under this section.

     (e)  No party shall be awarded attorney's fees or costs in any action under this section.

     (f)  All fines collected under this section shall be deposited into [the] general fund."]

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of one full-time equivalent (1.0 FTE) housing discrimination investigator position.

     The sum appropriated shall be expended by the Hawaii civil rights commission for the purposes of this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval; provided that section 5 shall take effect on July 1, 2026.

Report Title:

HCRC; Discrimination; Source of Income; Prohibited; Penalties; Position; Appropriation

Description:

Allows the Hawaii Civil Rights Commission to prosecute discrimination based on source of income in housing cases.  Clarifies penalties.  Establishes a position.  Appropriates funds.  (SD1)

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

A BILL FOR AN ACT

relating to housing discrimination.

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

     SECTION 1.  The legislature finds that the federal housing choice voucher program, also known as section 8 of the United States Housing Act of 1937, as amended, provides federally‑funded, tenant-based vouchers to low-income households.  Once a household receives a section 8 voucher, the challenge is finding a landlord who is willing to accept the voucher.  Federal law does not require landlords to accept housing choice vouchers as a form of payment for rent.  Refusal to rent to voucher holders is a practice known as source of income discrimination, which disproportionately affects renters of color, renters with disabilities, elderly renters, and women.  While the Fair Housing Act protects these groups from discrimination based on their identities, it does not protect them from source of income discrimination. 

     To protect renters with housing assistance vouchers, the Legislature passed Act 310, Session Laws of Hawaii 2022, which prohibits source of income discrimination in rental transactions and imposes civil penalties on a landlord who commits a source of income discriminatory practice.  The legislature finds that the Hawaii civil rights commission is tasked with receiving, investigating, and conciliating complaints alleging any unlawful discriminatory practice based on discrimination, including discrimination in housing; however, source of income discrimination is not currently included.  The legislature believes that source of income discrimination should be added to the commission's scope of enforcement.

     Accordingly, the purpose of this Act is to authorize the Hawaii civil rights commission to prosecute discrimination based on source of income in housing cases.

     SECTION 2.  Section 368-3, Hawaii Revised Statutes, is amended to read as follows:

     "§368-3  Powers and functions of commission.  The commission shall have the following powers and functions:

     (1)  To receive, investigate, and conciliate complaints alleging any unlawful discriminatory practice under part I of chapter 489, chapter 515, [and] part I of chapter 378, and chapter 368F, and complaints filed under this chapter, and conduct proceedings on complaints alleging unlawful practices where conciliatory efforts are inappropriate or unsuccessful;

     (2)  To hold hearings and make inquiries, as it deems necessary, to carry out properly its functions and powers, and for the purpose of these hearings and inquiries, to administer oaths and affirmations, conduct depositions, compel the attendance of parties and witnesses and the production of documents by the issuance of subpoenas, examine parties and witnesses under oath, require answers to interrogatories, and delegate these powers to any member of the commission or any person appointed by the commission for the performance of its functions;

     (3)  To commence civil action in circuit court to seek appropriate relief, including the enforcement of any commission order, conciliation agreement, or predetermination settlement;

     (4)  To issue the right to sue to a complainant;

     (5)  To order appropriate legal and equitable relief or affirmative action when a violation is found;

     (6)  To issue publications and results of investigations and research that, in its judgment, will tend to promote goodwill and minimize or eliminate discrimination in employment, housing, and public accommodations;

     (7)  To submit annually to the governor and the legislature a written report of its activities and recommendations for administrative or statutory changes required to further the purposes of this chapter;

     (8)  To appoint an executive director, deputy executive director, attorneys, and hearings examiners who shall be exempt from chapter 76, and investigators and other necessary support personnel who shall be subject to chapter 76.  Section 28-8.3 notwithstanding, an attorney employed by the commission as a full-time staff member may represent the commission in litigation, draft legal documents for the commission, provide other necessary legal services to the commission, and shall not be deemed to be a deputy attorney general; and

     (9)  To adopt rules under chapter 91."

     SECTION 3.  Section 368-17, Hawaii Revised Statutes, is amended to read as follows:

     "§368-17  Remedies.  (a)  The remedies ordered by the commission or the court under this chapter may include compensatory and punitive damages and legal and equitable relief, including, but not limited to:

     (1)  Hiring, reinstatement, or upgrading of employees with or without back pay;

     (2)  Admission or restoration of individuals to labor organization membership, admission to or participation in a guidance program, apprenticeship training program, on-the-job training program, or other occupational training or retraining program, with the utilization of objective criteria in the admission of persons to those programs;

     (3)  Admission of persons to a public accommodation or an educational institution;

     (4)  Sale, exchange, lease, rental, assignment, or sublease of real property to a person;

     (5)  Extension to all persons of the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of the respondent;

     (6)  Reporting as to the manner of compliance;

     (7)  Requiring the posting of notices in a conspicuous place that the commission may publish or cause to be published setting forth requirements for compliance with civil rights law or other relevant information that the commission determines necessary to explain those laws;

     (8)  Payment to the complainant of damages for an injury or loss caused by a violation of part I of chapter 489, chapter 515, part I of chapter 378, or this chapter, including a reasonable attorney's fee;

     (9)  Payment to the complainant of all or a portion of the costs of maintaining the action before the commission, including reasonable attorney's fees and expert witness fees, when the commission determines that award to be appropriate; and

    (10)  Other relief the commission or the court deems appropriate.

     (b)  Section 386-5 notwithstanding, a workers' compensation claim or remedy does not bar relief on complaints filed with the commission.

     (c)  Notwithstanding subsections (a) and (b), the commission may:

     (1)  Subject a landlord that violates the provisions of chapter 368F to a civil penalty in an amount not to exceed $2,000 if determined by the commission to have violated chapter 368F for the first time within one year of the occurrence of the alleged violation;

     (2)  Impose a $2,500 penalty against a landlord for any subsequent violation; and

     (3)  Order any injunctive or other equitable relief as it deems proper;

provided that no landlord shall be fined more than once for the same violation under this section; provided further that no party shall be awarded attorney's fees or costs in any action under this subsection.

     All fines collected under this subsection shall be deposited into the general fund."

     SECTION 4.  Section 368F-4, Hawaii Revised Statutes, is repealed.

     ["[§368F-4]  Remedies.  (a)  A landlord that violates any provisions of this chapter may be subject to a civil penalty in an amount not to exceed $2,000 if determined by the court to have violated this chapter for the first time within one year of the occurrence of the alleged violation.

     (b)  The court may impose a $2,500 penalty against a landlord for any subsequent violation of this chapter by the landlord.

     (c)  The court may also order any injunctive or other equitable relief as it deems proper.

     (d)  No landlord shall be fined more than once for the same violation under this section.

     (e)  No party shall be awarded attorney's fees or costs in any action under this section.

     (f)  All fines collected under this section shall be deposited into [the] general fund."]

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

Report Title:

HCRC; Discrimination; Income; Prohibited

Description:

Allows the Hawaii Civil Rights Commission to prosecute discrimination based on source of income in housing cases.

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

STAND. COM. REP. NO. 2394

Honolulu, Hawaii

RE:     S.B. No. 2210

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Housing, to which was referred S.B. No. 2210 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING DISCRIMINATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to authorize the Hawaii Civil Rights Commission to prosecute discrimination based on source of income in housing cases and clarify penalties for violations.

     Your Committees received testimony in support of this measure from the State Council on Developmental Disabilities, Hawaiʻi Civil Rights Commission, and one individual.

     Your Committees find that although it is unlawful to discriminate against protected groups of individuals in rental transactions in the State, vulnerable households participating in housing choice voucher programs can experience difficulty finding affordable, stable housing because they are often faced with discrimination based on their source of income.  Your Committees further find that the Hawaii Civil Rights Commission is tasked with receiving, investigating, and conciliating complaints alleging any unlawful discriminatory practice, including discrimination in housing.  However, source of income discrimination is not currently included in the Hawaii Civil Rights Commission's purview.  This measure would strengthen the State's housing discrimination laws, provide accessible enforcement mechanisms, and improve access to stable housing for vulnerable households.

     Your Committees have amended this measure by:

     (1)  Inserting a blank appropriation to establish one full-time equivalent (1.0 FTE) housing discrimination investigator position within the Hawaii Civil Rights Commission; and

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

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2210, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2210, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

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