It’s commonly said at the Hawaii Legislature that a bill is never dead until sine die — adjournment of the last day of session.
Still, it’s breathtaking how quickly a measure can be given new life.
Such is the case with , which was radically amended and unanimously passed Thursday by Donna Mercado Kim’s Senate Tourism Committee; Sens. Gil Kahele and Sam Slom voted with reservations.
HB 2078 had been intended to enforce transient accommodations tax compliance by having operators or managers pay a one-time fee to register the units with the state, and to have the registration displayed on all advertisements and solicitations.
By the time the bill got to Senate Tourism, however, legislators removed most of that language and inserted — nearly word for word — the language in . SB 2089 called for requiring non-resident owners of Hawaii vacation rentals to hire local brokers or sales agents.
SB 2089 was deferred by House Tourism on March 12 after hundreds of those non-residents, including in Alaska, Washington, Oregon and California, submitted strong opposition testimony.
But, like Frankenstein’s monster, the brain of SB 2089 lives on in the body of HB 2078, which awaits a hearing in Senate Commerce and Consumer Protection.
“I was totally floored,” said Alicia Hopkins, who attended Thursday’s committee hearing. “I expected them to make some amendments to HB 2078, but not resurrect SB 2089 all over again.”
Passage Likely?
HB 2078 could have support in the Senate Commerce and Consumer Protection.
The chair is Rosalyn Baker, a Maui senator who has expressed sympathy with local real estate groups who argue that tens of millions of dollars in annual tax revenue from the rentals may be going uncollected under current law.
The committee also includes Big Island Sen. Josh Green — the very person who introduced SB 2089, the bill that was shelved after the uproar.
HB 2078 includes earlier language requiring prominent placement of the name and phone number of a local point of contact for a vacation unit. It also requires the Tax Department to issue a registration identification number for each nonresident owner, which must be provided to those leasing.
The idea is to help aid general excise and transient accommodations tax compliance, though some owners testified that the requirements are burdensome and confusing and could lead to criminal misuse.
Hopkins, who divides her time between Los Angeles and Idaho and rents out a one bedroom and studio in Kaanapali, Maui, said she supported the intent of providing contact information.
“But I didn’t think they would take the bill to that degree — to take whole thing, 2089, lock stock and barrel, with just two changes,” she said.
Word Spreading Fast
Hopkins said news of the legislation’s resurrection is moving quickly, and she expects non-resident owners like herself to take similar action as they did against SB 2089.
Hopkins has also launched a website, , formed specifically in response to what’s happened with the Hawaii legislation. It has already attracted 350 members “from all over,” she said.
Its mission:
The Rental By Owners Awareness Association believes that this industry needs a fair regulation to control problems caused by poorly managed establishments and to educate those who do choose to rent on their own to understand and comply with the laws and taxing authorities of Hawaii.
The Rental By Owner Awareness Association will continue to work in good faith with government and the public to find middle ground with enforcing and establishing new and existing laws, to benifit the community as a whole.
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About the Author
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Chad Blair is the politics editor for Civil Beat. You can reach him by email at cblair@civilbeat.org or follow him on Twitter at .