Report Title:

Vacation rentals; Illegal activity

 

Description:

Requires each county to assess the extent of proliferation of illegal bed and breakfast establishments and other illegal transient vacation rentals within its county, create a countywide plan and policies to deal with the illegal activity, and report to the Legislature.  Also requires the counties to increase enforcement. 

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1603

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to transient accommodations.

 

 

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

 


     SECTION 1.  The legislature finds that due to a combination of market demand, Internet facilitated marketing and reservation systems, and minimal county enforcement, there has been a sharp increase in the number of vacation rental homes and bed and breakfast facilities.  Many are located outside of designated resort areas or hotel zones, and have created mini-tourist areas within residential neighborhoods.  Many are unregistered and unlicensed to do business.  These illegal businesses are diverting residential housing stock that would otherwise be available to local residents.  In addition, allowing operators of bed and breakfast and transient residential vacation rental operations to continue operating without penalty when they have not obtained the required permits, or paid the applicable taxes, diminishes respect for the law and results in decreased funding for the convention center, tourism, state parks, and Hawaii statewide trial and access program, which are funded by the transient accommodations tax.


     The purpose of this Act is to require the counties to:

     (1)  Assess the status of illegal bed and breakfasts and            transient vacation rentals;

     (2)  Create a county-wide plan and policies to be adopted               by the county to effectively deal with illegal bed and         breakfast and vacation rental operations; and

     (3)  Increase enforcement efforts to identify illegal bed               and breakfast and vacation rental operations and bring        them into compliance with the applicable laws.

     SECTION 2.  Each county shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2008 on:

     (1)  The status of illegal bed and breakfasts and transient         vacation rentals, including but not limited to:

(A)  The number of bed and breakfasts and vacation rental properties within the county and the compliance rates; and

          (B)  Identification of the areas affected by illegal bed and breakfasts and vacation rentals;

     (2)  A county-wide plan on how to effectively deal with             illegal bed and breakfast and vacation rental                  operations; and

     (3)  Policies on how to implement the county-wide plan.

     The director of finance shall immediately withhold any transient accommodations tax amounts that are to be transferred to the county under section 237D-6.5(b)(3), Hawaii Revised Statutes, upon a county's failure to submit the report within the prescribed time, until the county submits the report to the legislature.

     SECTION 3.  The counties shall increase efforts to enforce applicable state and county laws and ordinances, including but not limited to zoning, tax, licensing, and registration laws, applicable to bed and breakfast and vacation rental operations, and shall bring the operations into compliance.

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

 

INTRODUCED BY:

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