STAND. COM. REP. NO. 395

Honolulu, Hawaii

RE:    S.B. No. 704

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Economic Development, Tourism, and Technology and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 704 entitled:

"A BILL FOR AN ACT RELATING TO VACATION RENTALS,"

beg leave to report as follows:

     The purpose and intent of this measure is to establish and appropriate funds for an online vacation rental working group to develop effective data collection methods that can assist state and county governments in monitoring the impact that short-term vacation rentals have on tax collection, housing stock, and the State's brand as a vacation destination.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Planning and Permitting of the City and County of Honolulu; Rental by Owner Awareness Association; and six individuals.  Your Committees received comments on this measure from the Department of Taxation; Airbnb; and Hawai‘i Association of REALTORS.

     Your Committees find that there are currently more than forty online platforms that facilitate thousands of short-term rentals ranging from rental opportunities for single rooms to entire homes and villas.  Your Committees find that an online vacation rental working group will help develop effective data collection methods that can assist state and county governments in monitoring the impact that short-term vacation rentals have in the State.

     Your Committees have amended this measure by:

     (1)  Adding a member to the online vacation rental working group from the Hawaii Association of REALTORS; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Tourism, and Technology and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 704, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 704, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Tourism, and Technology and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ GLENN WAKAI, Chair