S.B. 566 Summary

• Requires the legislative reference bureau to conduct a study on increasing the homestead exemption under Hawaii Revised Statutes section 651-92, which applies to real property exemptions for principal residences in bankruptcy proceedings.

• Study must compare Hawaii's homestead exemption with those in similar-sized states or states with similar tax structures, including examination of how other states apply their exemptions.

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

• Legislative reference bureau must submit findings, recommendations, and proposed legislation to the legislature no later than 20 days before the 2022 regular session convenes.

• Act takes effect December 1, 2050.