The following is an email sent to all Hawaiian Senators and Representatives offering to work together to resolve the challenges posed by TVR and the unsubstantiated claims being made:
Dear Hawaii Senators and State Representatives:
I’m writing to you in the hope that we might work together to put in place a consistent, effective approach to the state’s array of accommodation offerings including owner-operated transient accommodations and agency-managed transient accommodations.
This legislative session — and the four legislative sessions prior — have witnessed a number of bills introduced that offer widely disparate statements as to the definition, quantity, and legality of these types of transient accommodations. Whether the description is Individual Visitor Units (IVUs), Individually Advertised Units (IAUs), Transient Vacation Rentals (TVRs), or Transient Vacation Units (TVUs), we do not believe that Hawaii wishes to put an end to this type of accommodation, nor do we believe Hawaii wants to send a message that such options are to be denied to consumers. But the attacks on this popular vacation option has seen Hawaii legislators criticized for advancing bills that create monopolies for hotels or property managers.
Important update as of March 15, 2015
SB 519 SD2
SB 519 SD2 - has been substantially amended from its original form. RBOAA supports this bill as amended and elimination of the sunset clause on Act 326. It has crossed to the House, passed first reading and was referred to TOU, CPC/JUD, FIN.
There will be a hearing on Wednesday March 18 and we request that you submit testimony in support by Monday March 16.
HB 825 SD1
HB 825 SD1 - which creates many onerous rules and procedures, passed all hearings to date with virtually no changes. It has crossed to the Senate, passed first reading and was referred to TSI/CPN, and JDL/WAM. RBOAA will update the status once the hearing date and testimony due date is known.
Summary of Provisions of Important Bills
SB519 SD2 extends the provisions of Act 326 until December 31st 2020.
As well, starting in 2016, it requires the Department of Taxation to submit an annual report to the legislature (no later than 20 days before the start of the Session) on its findings and recommendations regarding the implementation of Act 326, including any proposed legislation to improve the enforcement of Act 326.
SB519 SD2 allows the DoT to issue cease-and-desist orders and monetary fines for operators and plan managers who fail to conspicuously display the certificate of registration (Hawaii Tax ID) in the registered transient accommodation.
HB825 HD1 amends Hawaii Revised Statutes by adding a new chapter: Transient Vacation Rentals establishes licensing requirements and enforcement provisions for transient vacation rentals (“TVRs”).
The bill gives powers to the DCCA to award or rescind TVR licenses, define rules for TVR operation, and to investigate TVR operation.
It establishes a new licensing regime for TVR operation, requiring owners to secure a license, renewable each year by December 31. The licence application requires TVRowners to provide TVR address, proof ownership, information on Local Contact (available 24/7/365), proof of compliance with condo/AOAO bylaws and County ordinances. Application requires TVR owners to supply account number and name of Hawaii-located bank, and name of online and other communications used to advertise the TVR.
To apply for licensing, owners of TVRs must submit GET and TAT registration numbers, GET and TAT filings for previous two years. Once licensed, TVRs must post Local Contact information, include DCCA licensing sealand licence number, in any advertisements, provide information about same to their condo AOAO, and keep AOAO current on any changes. Licensed TVRs must obtainand operate a trust account in a Hawaii bank where guest funds are to be held, unencumbered. Licensed TVRs must keep all records of deposit, wires, transfers, statements, cancelled cheques for two years, producing same to the DCCA within three business days’ notice.
The DCCA can contract out enforcement, and enforcement officials can execute warrants and issue citations. With written notice to TVR owner or Local Contact, enforcement officials can enter the TVR to ensure compliance; warrants can be issued to police if access to TVR denied. If TVR deemed illegal, TVR owner liable for costs of investigation.
Owners of TVRs who fail to comply receive $10,000.00 civil penalty for each separate offense, with $2,000 for each separate offence following written warning from DCCA.
I want to thank everyone for submitting testimony, for reading and considering the bills, and for providing input and ideas. We’re all busy with life, I know, and it has been just terrific to know that while we’ve been doing our work at RBOAA (and as individual owners, too!) so many are doing exactly the same.
Let me start with the harsh reality: Of all the bills we have been actively involved in, it is essential for us all to know that there are still a couple we must keep our eyes on. As we all know from 2012, the Hawaii Legislature can quickly throw some harmful language into another bill, and immediately, we’d have a new bill that can cause us additional angst.
Pending Legislation Introduced in 2015
(as of January 28, 2015)
Bills to amend Act 326 that have been introduced in the 2015 legislature as of January 28, 2015 are:
SB1031 (Baker and others) requires 'local contact" to now be "on-island agent" who must be a licensed realtor. Custodian/caretaker must be an employee and work for only one owner.
Legislative session wrap-up: RBOAA again turns tide in Hawaii legislature, by Alicia Hopkins, President, RBOAA
Another Hawaii legislative session has ended. Once again, the efforts of the Hawaii Rental By Owner Awareness Association (RBOAA) played a significant role in preserving the owner-operated vacation-rental accommodation choice in Hawaii for visitors, and upholding the ability of owners who invest in Hawaii to provide it. Click here to read more...
Rental By Owner Awareness Association's (RBOAA) Mission is:
to provide accurate information about Hawaiian vacation rentals to property owners and Hawaiian legislators
to support the Hawaiian economy by ensuring that visitors have sufficient options in their selection of accommodations
to provide Hawaiian vacation rental property owners with information that will increase their awareness of changing federal, state, and local regulations and requirements with which their ongoing compliance is required
to help ensure that the rights of Hawaiian vacation rental property owners are not infringed on by others who would prefer to restrict them to reduce competition.
MEMBERS PLEASE NOTE:
Key reporting dates approaching under Act 326 . . .
Regular visitors to the RBOAA website will be quite familiar with our “Complying with Act 326” tab found under “News and Updates.” Once there, you’ll see we’ve placed a helpful link to the Hawaii “Department of Taxation Announcement 2014-02” which spells out responsibilities of vacation rental owners and AOAOs under Act 326.
March 31, 2014 — If you are an operator of transient accommodation, you must report certain information to your AOAO by this date.
April 30, 2014 — Your AOAO must file a report of this information with the Hawaii Department of Taxation by this date.
It may well be that your AOAO has already requested the Act 326 information from you, or that you have supplied it to your AOAO without their reminder. For our part, given the importance of Act 326, and the penalties for non-compliance, RBOAA is recommending that all owners of transient accommodation exercise an abundance of caution, and provide to their AOAO by March 31, 2014, the information required of operators of transient accommodation under Act 326.