SB1295

SECTION 1. The legislature finds that there should be a determined finite carrying capacity of accommodations for visitors in the State. Presently, these accommodations include traditional hotels under a single ownership, condominium projects operated as hotels, time-shares, bed-and-breakfasts, and vacation rentals in residential districts throughout the State. Many of these visitor accommodations go unregulated, impact local infrastructure and public services, and operate without being subject to the full measure of the counties' real property tax of the transient accommodations tax.

The purpose of this Act is to set a maximum number of visitor accommodations of all kinds in each county and to properly regulate their operations.

SECTION 2. Chapter 486K, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART II. VISITOR ACCOMMODATIONS

§486K-A Definitions. As used in this part, unless the context clearly requires otherwise:

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

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

"Visitor accommodation units" includes transient accommodations, as defined in section 237D-1, time-shares, subject to chapter 514E, and any vacation rentals that rent all or part of a single-family dwelling, condominium or cooperative unit, or apartment for a period of sixty days or less.

§486K-B Maximum number of visitor accommodations units.

In consultation with the director of business, economic development, and tourism and representatives of the visitor industry, the director shall set a maximum number of visitor accommodation units for each county, which maximum number for each county, at minimum, shall include all hotel units presently subject to license issued pursuant to section 445-2.

§486K-C License to operate visitor accommodation units; fee; penalty. (a) Each operator of a visitor accommodation unit shall apply for a license from the department to operate a visitor accommodation unit. The application shall be in the form and contain such information as prescribe by the director. A license issued by the department shall include:

(1) The name and address of the operator;

(2) The name and address of the visitor accommodations;

(3) The type of visitor accommodation unit that is subject to the license; and

(4) The number of visitor accommodation units allowed under the license.

(b) The annual fee for the license shall be $ per unit.

(c) The license shall be posted at all times in a conspicuous, clear, and unobstructed place where a visitor will register for the visitor accommodation unit.

(d) Any person that operates a visitor accommodation unit without a license for the visitor accommodation unit or fails to observe any of the requirements of this part shall be fined not less than $500 nor more than $2,000 per day per unit not licensed pursuant to this section.

§486K-D Transfer of license. (a) A license to operate a visitor accommodation unit shall be nontransferable by a licensee. Any transfer of a license, directly or indirectly, by a licensee shall be void and the license forfeited.

(b) In the event that an operator holding a license to operate a visitor accommodation unit shall cease to operate the visitor accommodation unit, the operator shall return the license to the department, which shall from time to time hold a public sale, by sealed bid or public auction, to issue a new license to include the number of units contained in the surrendered license. The proceeds of any public sale, less administration costs of the public sale, shall inure to the person surrendering the license.

§486K-E Increase in number of visitor accommodation units.

At the discretion of the director, but not less than once every two years, in consultation with the department of business, economic development, and tourism and representatives of the visitor industry, the director shall determine whether a need exists to raise or lower the maximum number of visitor accommodation units for each county. Any raising or lowering of the maximum number of visitor accommodation units in any county shall be accomplished through rulemaking.

§486K-F Rules. The director, pursuant to chapter 91, shall adopt rules to implement this part."

SECTION 3. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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THE SENATE	S.B. NO.	1295
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII