Bill Text: HI HB474 | 2014 | Regular Session | Amended

Hawaii House Bill 474 (Prior Session Legislation)

Bill Title: Transient Accommodations; Owners and Operators; Reporting Requirements

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2014-03-18 - The committee on CPN deferred the measure. [HB474 Detail]

Download: Hawaii-2014-HB474-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	474
TWENTY-SEVENTH LEGISLATURE, 2013		H.D. 1
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 Act 326, Session Laws of Hawaii 2012, requires associations to collect information from operators of transient accommodations, maintain the information in their records, and provide that information to the department of taxation. However, Act 326 can be read to require an association to report more information than is actually collected and can penalize the association up to $100,000 for failure to report even when the owner of a transient accommodation refuses or fails to provide relevant information to the association.

Therefore, the purpose of this Act is to:

(1) Clarify that an association's duty to report to the department of taxation is limited to the relevant information an association actually receives from a transient accommodation operator; and

(2) Limit the fines imposed on an association while also holding an owner or operator of a transient accommodation accountable for failure to report.

SECTION 2. Act 326, Session Laws of Hawaii 2012, is amended by amending section 2 to read as follows:

"SECTION 2. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237D- Local contact; relevant information; advertisements; transient accommodations. (a) Any operator [~~of a transient accommodation~~] shall designate a local contact residing or having a principal place of business on the same island where the transient accommodation is located.

(b) The operator shall furnish [~~the name, address, and contact information of the local contact~~] relevant information to any association of homeowners, community association, condominium association, cooperative, or any other nongovernmental entity with covenants, bylaws, and administrative provisions with which the operator's compliance is required for the property where the transient accommodation is located. The operator shall notify and provide updated information to that association or nongovernmental entity within sixty calendar days of any change in the [~~name, address, and contact information of the local contact.~~] relevant information.

Any person or entity who wilfully fails to supply information required under this subsection shall be subject to [~~the penalties under section 231-35; provided that a person or entity shall not be subject to any term of imprisonment or probation under section 231-35.~~] a fine of no more than $2,500. A fine under this subsection shall only be imposed where an operator wilfully fails to furnish the relevant information maintained in their records or update that information within sixty days of a change. A fine shall not be imposed where an operator fails to furnish or update information for reasons of non-wilful conduct such as negligence or administrative error, so long as the operator furnishes or updates the relevant information within sixty days of the discovery of the negligence, administrative error, or other non-wilful conduct.

(c) Any nongovernmental entity with covenants, bylaws, and administrative provisions which is formed pursuant to chapter 514A, 514B, or 421J, shall provide the department with all relevant information[,] received from operators and maintained in its records[~~, related to all operators who may be leasing their property as transient accommodations~~] by December 31 of each year, or within sixty calendar days of any change in the relevant information, operation, or ownership of the transient accommodation[.]; provided that a nongovernmental entity's duty to report under this section shall be limited to relevant information, if any, received from operators. Any person or entity who wilfully fails to supply information required under this subsection shall be subject to [~~the penalties under section 231-35; provided that a person or entity shall not be subject to any term of imprisonment or probation under section 231-35.~~] a fine of no more than $2,500. A fine under this subsection shall be imposed no more than once per year.

(d) Each county shall provide the department with information necessary to enforce this section. Notwithstanding any provision of title 14 to the contrary, the department shall provide the counties with information necessary for the enforcement of county real property tax laws.

(e) The name and phone number of the local contact for each transient accommodation shall be included in any transient accommodation contract or written rental agreement and shall be prominently posted in the transient accommodation. The local contact shall reside or have a principal place of business on the same island as the transient accommodation, and shall meet all other requirements under subsection (a). Any person or entity who wilfully fails to supply information required under this subsection shall be subject to the penalties under section 231-35; provided that a person or entity shall not be subject to any term of imprisonment or probation under section 231-35.

(f) The registration identification number issued pursuant to section 237D-4 shall be provided on a website or by online link and displayed in all advertisements and solicitations on websites regarding transient accommodations for which the registration number is issued.

(g) The payment of any penalty assessed under this section against an operator shall be in addition to the requirements under section 237D-9.

(h) For the purposes of this section:

"Local contact" means an individual or company contracted by the operator [~~of the transient accommodation~~] to provide services required by this section. Nothing in this section shall be deemed to create an employer-employee relationship between an operator and its local contact.

"Relevant information" means the operator's name, mailing address, telephone number and other relevant contact information, registration identification number issued pursuant to section 237D-4, [~~and~~] website address if advertising or soliciting the transient accommodation on the Internet along with which units were advertised on the website, the name of the local contact, the local contact's mailing address, and the local contact's phone number and other relevant contact information.""

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:

Transient Accommodations; Owners and Operators; Reporting Requirements

Description:

Clarifies that an association's duty to report to the department of taxation is limited to the relevant information an association actually receives from a transient accommodation operator. Limits the fines imposed on an association while also holding an owner or operator of a transient accommodation accountable for failure to report. (HB474 HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.