THE SENATE

S.B. NO.

1009

TWENTY-EIGHTH LEGISLATURE, 2015

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO SERVICE CHARGES.

 

 

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

 


SECTION 1.  The legislature finds that consumers should know whether or not, and to what extent, the money they pay hotels in porterage service charges is being paid to employees.  When a hotel charges service charges to customers, customers may believe that those charges are being paid to employees as tip income; however, this is not necessarily the case.  Despite the fact that many employees statewide rely on tips as a crucial supplement to their wages, hotels can retain all or part of those service charges for themselves.  When hotels engage in this practice, it should be transparent to consumers because this information could influence whether or not a consumer chooses to use porterage services.  The information may also be valuable to employees and potential employees of a hotel when making employment decisions.

     The purpose of this Act is to ensure that hotels either distribute porterage service charges to employees in full or notify customers that service charges are being used for other purposes.

     SECTION 2.  Section 481B-14, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§481B-14  Hotel or restaurant service charge; hotel porterage service charge; disposition.[]]  (a)  Any [hotel]:

     (1)  Hotel or restaurant that applies a service charge for the sale of food or beverage services; or

     (2)  Hotel that applies a service charge for porterage services;

shall distribute the service charge directly to its employees as tip income or clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees.

     (b)  As used in this section, unless the context requires otherwise, "porterage" includes the act of moving luggage, bags, or parcels between a guest room and a lobby, front desk, or any area with vehicular access at a hotel, hotel-condominium, or condominium-hotel as defined in section 486K-1."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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


 


 

Report Title:

Service Charges; Porterage Services; Hotels

 

Description:

Requires hotels to distribute porterage service charges to employees in full or disclose to customers that the charges are being used for other purposes.  (SD1)

 

 

 

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