Bill Text: HI SB2974 | 2016 | Regular Session | Introduced

---

Bill Title: Transient Vacation Rentals; Registration; Department of Commerce and Consumer Affairs; Compliance Resolution Fund

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-01-29 - Referred to TSI/PSM/CPH, WAM/JDL. [SB2974 Detail]

Download: Hawaii-2016-SB2974-Introduced.html

---

THE SENATE	S.B. NO.	2974
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to transient vacation rentals.

 

 

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

 

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

transient vacation rentals

     §   -1  Definitions.  As used in this chapter:

     "Department" means the department of commerce and consumer affairs.

     "Director" means the director of commerce and consumer affairs.

     "Dwelling unit" means a structure, or part of a structure, for lease or rent which provides shelter.

     "Transient vacation rental" means a single-family dwelling unit, a multi-family dwelling unit, guest house, bed and breakfast establishment, room, apartment, or the like which is occupied for a fee by a transient occupant for less than one hundred eighty consecutive days.

     §   -2  Powers and duties of the director.  In addition to any other powers and duties authorized by law, the director shall:

     (1)  Grant certificates of registration to legal transient vacation rental owners pursuant to this chapter;

     (2)  Adopt, amend, or repeal rules pursuant to chapter 91 as the director may deem proper to fully effectuate this chapter;

     (3)  Enforce this chapter and the rules adopted pursuant thereto;

     (4)  Fine, suspend, terminate, or revoke any registration for any cause prescribed by this chapter, or for any violation of the rules, and refuse to grant any registration for any cause that would be grounds for revocation, termination, or suspension of a registration; and

     (5)  Investigate the actions of any person or agency acting or alleged to be acting in the capacity of a registrant under this chapter.

     §   -3  Registration required.  (a)  No transient vacation rental shall operate or do business in this State without first registering with the director under this chapter and fulfilling all county requirements.

     (b)  Registration shall include:

     (1)  The name, address, and contact information of the owner of the legal transient vacation rental;

     (2)  A description of the property, including the tax map key number, street address, and name the property is known by, whether a unique name for the property or an association or building name;

     (3)  Submission of a complete application for registration;

     (4)  Submission of a:

         (A)  Certificate of good standing or a certificate of authority from the department's business registration division;

         (B)  General excise tax license issued pursuant to chapter 237; and

         (C)  Transient accommodations tax registration number issued pursuant to chapter 237D;

     (5)  Submission of:

         (A)  A written agreement describing the manner in which rent is collected, including but not limited to merchant accounts, an auto-debit transaction, bank transfer, check as defined in section 480F-1, electronic funds transfer, or a local agent; and

         (B)  The name, phone number, and address of the local agent, who shall be available twenty-four hours a day, seven days a week;

     (6)  Proof of compliance with the requirements of sections 237-30.5 and 237D-8.5;

     (7)  Proof of compliance with any county ordinances relating to the regulation of vacation rentals;

     (8)  If required, a nonconforming use certificate issued pursuant to section    -6; and

     (9)  Payment of appropriate fees.

     (c)  No registration may be assigned, sold, leased, encumbered, or otherwise transferred, except upon the written application to and approval by the director.

     §   -4  Application for registration.  The director shall prescribe the form of the application for registration.  Each application shall be accompanied by the appropriate fees.

     §   -5  Certificate of registration.  Each certificate of registration shall be in a form prescribed and signed by the director and issued in the name of the department.

     §   -6  Nonconforming uses.  (a)  Any legal transient vacation rental existing on January 1, 2017, may be continued; provided that no nonconforming use shall be expanded, replaced, reconstructed, or changed.  When a legal transient vacation rental that is a nonconforming use is discontinued or held in abeyance for a period of one year, the further continuation of the use shall be prohibited.

     (b)  To qualify as a nonconforming use under this section, the owner of the legal transient vacation rental shall submit to the director:

     (1)  Proof of payment of general excise taxes on the gross rents collected from the transient vacation rental for the past seven years; and

     (2)  Proof of payment of transient accommodations taxes on the gross rents collected from the transient vacation rental for the past seven years.

     §   -7  Prohibited acts.  No owner of a transient vacation rental shall:

     (1)  Sell or advertise a transient vacation rental without first registering with the director under this chapter; or

     (2)  Otherwise violate any of the provisions of this chapter or rules adopted pursuant to this chapter.

     §   -8  Penalty.  (a)  Any owner of a transient vacation rental who fails to comply with this chapter shall pay a civil penalty of $           for each separate offense; provided that following a warning issued by the director or an agent charged with the enforcement of this chapter, the owner shall be subject to a fine of $           for each separate offense.

     (b)  All fines shall be paid to the department and deposited into the compliance resolution fund under section 26‑9(o).

     §   -9  County authority.  The several counties through rules adopted pursuant to chapter 91 or ordinance may establish additional regulations for transient vacation rentals."

     SECTION 2.  This Act shall take effect on January 1, 2017.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Transient Vacation Rentals; Registration; Department of Commerce and Consumer Affairs; Compliance Resolution Fund

 

Description:

Requires registration of transient vacation rentals with the director of commerce and consumer affairs prior to operating or doing business in the State.  Permits certain nonconforming uses of transient vacation rentals.  Establishes penalties for noncompliance with registration requirements and allocates associated fines to the compliance resolution fund.  Authorizes the counties to impose additional regulations.  Registration requirements effective January 1, 2017.

 

 

 

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