HB945

SECTION 1. The legislature finds that tourism is a major contributor to the State's economy. Travelers come from around the globe to experience Hawaii's natural beauty, culture, and diversity.

The legislature further finds that travelers staying at hotels are vulnerable to disruptions to accommodation services. They are often unfamiliar with local conditions and lack alternative accommodations during their stay. The legislature also finds that hotel guests will frequently be unaware of pest infestations; construction work; noisy demonstrations; work stoppages, strikes, or lockouts; or the unavailability of advertised amenities at the hotel when they make reservations and may experience difficulty canceling their reservations upon arriving and discovering such disruptions.

The legislature additionally finds that ensuring that hotel guests are notified of any service disruption, or the possibility of a service disruption, and are permitted to terminate reservations without financial consequences is essential to protect travelers from the effects of service disruptions and to ensure the continued vitality of Hawaii's tourism and hotel sector.

Therefore, the purpose of this Act is to:

(1) Require a hotel to provide notification of a service disruption to all third-party vendors and prospective and current guests; and

(2) Prohibit a hotel from imposing any fee, penalty, or other charge, or retaining any deposit, if, before check-in, a guest cancels a reservation due to a service disruption, unless the hotel provided prior notification.

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

"§486K- Hotel; service disruption; notification. (a) At the onset of a service disruption or of notice that a service disruption may occur, a hotel shall provide notification of the service disruption to:

(1) Each third-party vendor;

(2) Each potential guest immediately before accepting or entering into any new reservation, booking, or agreement:

(A) For the use or occupancy of a room or hotel service that could be substantially affected by the service disruption; or

(B) With a third-party vendor for the use or occupancy of a room or hotel service that could be substantially affected by the service disruption; and

(3) Any current guest who is substantially affected by the service disruption.

Where the circumstances of a service disruption make timely notification impracticable, notification shall be made as soon as practicable.

(b) The notification required by this section shall describe the following:

(1) The nature of the service disruption; and

(2) The extent of the service disruption's effect on reservations, bookings, or agreements to use or occupy a room or hotel services, including the right to cancel or terminate the reservation, booking, or agreement for the use or occupancy of a room or hotel services without the imposition of any fee, penalty or other charge, as provided in subsections (c) and (d).

If notification is included in a communication containing other information, the notification shall be clear and conspicuous and in a significantly larger font and different color than the remainder of the communication.

(c) No hotel shall impose any fee, penalty, or other charge, or retain any deposit, if a guest, before checking in, cancels a reservation, booking, or agreement with the hotel for the use or occupancy of a room, where a guest's stay or room could be substantially affected by a service disruption during the guest's stay or use of a hotel service, unless the hotel provided notice of the service disruption pursuant to subsections (a) and (b) before accepting a reservation, booking, or agreement.

(d) Where a service disruption arises only after any guest of a room has checked in, the hotel shall clearly and conspicuously notify the guest of such service disruption within twenty-four hours of becoming aware of the service disruption, as provided in subsection (a). The notification shall specify the requirements set forth in this section.

At the onset of a service disruption or of notice that a service disruption may occur, the hotel shall immediately and clearly provide notification of the service disruption pursuant to subsections (a) and (b).

Regardless of whether the hotel provides notification pursuant to this subsection, the guests of a room or guests using a hotel service may terminate any reservation, booking, or agreement for the rental of the room or use of a hotel service, and the hotel shall not impose any fee, penalty or other charge for such termination, nor retain any deposit related to any unused portion of the period of the reservation, booking, or agreement, following the onset of a service disruption.

(e) Any hotel that violates or causes another person to violate this section shall forfeit to the injured party three times the amount of:

(1) The sum charged in excess of what the hotel is entitled to for each day that a notification was required under subsection (a), (b), or (d) but was not provided; and

(2) Any fee, penalty, or other charge or deposit imposed or retained in violation of subsection (c).

(f) Any person who is injured by any violation of this section may:

(1) Sue for damages sustained by the person and, if the judgment is for the plaintiff, the plaintiff shall be awarded a sum of no less than $1,000 or threefold damages sustained by the plaintiff, whichever is greater, and reasonable attorney's fees together with the costs of the suit; and

(2) Bring proceedings to enjoin the violation, and if the decision is for the plaintiff, the plaintiff shall be awarded reasonable attorney's fees together with the costs of the suit.

The remedies under this subsection are cumulative and may be brought in a single action.

(g) As used in this section:

"Service disruption" means any of the following conditions:

(1) Construction work in or directly related to the hotel that creates excessive noise that is substantially likely to disturb a guest, other than construction that is intended to correct an emergency condition or other condition that requires immediate attention;

(2) Conditions of which the hotel is aware indicating the presence in the hotel of any infestation by bed bugs, lice, or other insects, rodents, or other vermin capable of spreading disease or being carried, including on one's person, if the infestation is not fully treated within twenty-four hours of being identified;

(3) The unavailability, for a period of forty-eight hours or more, of any:

(A) Advertised hotel amenity, including but not limited to a pool, spa, shuttle service, internet access, or food and beverage service;

(B) Advertised room appliances or technology, including but not limited to in-room refrigerators or internet or Wi-Fi services; or

(C) Advertised or legally required accessibility feature, including but not limited to an elevator, wheelchair lift, ramp, or accessible bathroom in a room or in any common area of the hotel;

(4) The unavailability for a period of twenty-four hours or more of any utility, including but not limited to gas, water, or electricity, when the unavailability affects only the location of the hotel;

(5) Any strike, lockout, or other work stoppage; or

(6) Any lawful picketing or demonstration at or adjacent to the hotel:

(A) That creates noise that disturbs a guest of the hotel; or

(B) That the hotel has notice of and that is likely to create noise that may disturb a guest of the hotel.

"Third-party vendor" means a vendor with which a hotel has an arrangement for third-party room reservations, or any other entity that has reserved or entered into an agreement or booking for the use or occupancy of one or more rooms in a hotel in furtherance of the business of reselling rooms to guests."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	945
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII