HB 2371 Summary

• Requires the Legislative Reference Bureau to conduct a study on appropriate increases to Hawaii's homestead exemption under bankruptcy law, specifically examining Section 651-92 of Hawaii Revised Statutes.

• Study shall compare Hawaii's real property and homestead exemptions with similar states by size or tax structure, and analyze how other states apply their homestead exemptions.

• Study must assess fiscal implications to the State, counties, and private sectors from increased homestead exemptions, and evaluate the number and frequency of homestead exemption claims in Hawaii.

• Legislative Reference Bureau must submit findings, recommendations, and proposed legislation to the legislature no later than twenty days before the 2023 regular session convenes.

• Notes that Hawaii's homestead exemption has remained unchanged since 1978, while inflation has caused $1 from 1978 to equal more than $4 in 2020.