Bill Text: HI SB1121 | 2024 | Regular Session | Amended

Hawaii Senate Bill 1121

Amended

Bill Title: Relating To Homestead Exemptions.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2023-12-11 - Carried over to 2024 Regular Session. [SB1121 Detail]

Download: Hawaii-2024-SB1121-Amended.html

THE SENATE	S.B. NO.	1121
THIRTY-SECOND LEGISLATURE, 2023		S.D. 1
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 State's economy was greatly impacted by the coronavirus disease 2019 (COVID-19) pandemic. While conditions have slowly improved over the past two years, the economic contraction caused by the pandemic has exacerbated the economic strain felt by Hawaii families due to the State's high cost of living. In 2021, per capita mortgage debt was the highest it had ever been in twenty years, and the growth rate was at an all-time ten-year peak, due to skyrocketing property values coupled with Hawaii's persistently low housing inventory. While delinquency rates remained low and were relatively stable during the pandemic, this is believed to be due in large part to the receipt of unprecedented federal assistance, which contributed significantly to ease consumer debt management.

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 $4.57 in 2022.

The purpose of this Act is to require the Real Property and Financial Services Section of the Hawaii State Bar Association to conduct a study to determine the appropriate amount of an increase to the homestead exemption.

SECTION 2. (a) The Hawaii State Bar Association 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 Real Property and Financial Services Section of the Hawaii State Bar Association may seek input from any individual or entity if deems necessary to complete the study.

(d) The Real Property and Financial Services Section of the Hawaii State Bar Association 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 2024.

SECTION 3. This Act shall take effect on July 1, 2112.

Report Title:

Hawaii State Bar Association; Study; Homestead Exemption; Bankruptcy Proceedings

Description:

Requires the Real Property and Financial Services Section of the Hawaii State Bar Association to conduct a study to determine an appropriate increase to the homestead exemption in bankruptcy proceedings. Effective 7/1/2112. (SD1)

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