STAND. COM. REP. NO. 785
RE: S.B. No. 519
Honorable Donna Mercado Kim
President of the Senate
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 519, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose and intent of this measure is to require operators of transient accommodations and plan managers of resort time share vacation plans to inform consumers that they are in compliance with registration requirements.
More specifically, this measure:
(1) Amends Act 326, Session Laws of Hawaii 2012, by removing the repeal date, thereby making it permanent; and
(2) Authorizes the Department of Taxation to enforce civil penalties for operators and plan managers who fail to conspicuously display the required certificate of registration or notice.
Your Committee received written comments in support of this measure from the Hawaii Lodging and Tourism Association and eleven individuals. Your Committee received written comments on this measure from the Hawaii Association of Realtors, Hawaii Association of Vacation Rental Managers, and one individual.
Your Committee finds that Act 326, Session Laws of Hawaii 2012, promotes compliance with registration requirements by, among other things, requiring that operators of transient accommodations include government-issued registration identification numbers in all internet advertisements and solicitations. Your Committee further finds that providing the Department of Taxation with the authority to enforce civil penalties against operators and plan managers who fail to conspicuously display the required certificate of registration or notice is a suitable method of enforcing compliance with registration requirements.
Your Committee has amended this measure by:
(1) Amending Act 326, Session Laws of Hawaii 2012, to extend its repeal date by five years, rather than making it permanent;
(2) Requiring the Department of Taxation to submit an annual report to the Legislature regarding the implementation of Act 326, Session Laws of Hawaii 2012, and recommendations to improve the enforcement of that Act; and
(3) Making technical nonsubstantive amendments for the purposes of consistency and clarity.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 519, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 519, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
JILL N. TOKUDA, Chair