STAND. COM. REP. NO. 1666

Honolulu, Hawaii

, 2019

RE: S.B. No. 1292

S.D. 2

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 1292, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Amend the definition of "transient accommodations" to include other forms of transient accommodations and other terms that the counties may have defined;

(2) Make any person who fails to register prior to engaging or continuing in the business of furnishing transient accommodations subject to a citation process and monetary fines, rather than a misdemeanor;

(3) Make any person who enters into an agreement to furnish transient accommodations without registering subject to a citation process and monetary fines; and

(4) Require hosting platforms that collect fees for booking services to register as tax collection agents on behalf of their operators and plan managers for purposes of general excise taxes and transient accommodations taxes.

The Department of Taxation, Hawai‘i Tourism Authority, Maui Hotel & Lodging Association, and Kohala Coast Resort Association testified in support of this measure. The Department of Planning of the County of Kaua‘i, Airbnb, and an individual opposed this measure. The Department of Planning of the County of Maui, Department of Planning and Permitting of the City and County of Honolulu, Tax Foundation of Hawaii, and Expedia Group provided comments on this measure.

Your Committees have amended this measure by:

(1) Requiring the Director of Taxation to provide the counties with the minimal amount of data necessary to enable the counties to provide for meaningful enforcement of their land use ordinances, rules, or regulations; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1292, S.D. 2, H.D. 1, as amended herein, and recommend that it be referred to your Committee on Finance, in the form attached hereto as S.B. No. 1292, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ CHRIS LEE, Chair

____________________________ ROY M. TAKUMI, Chair