HB825 Summary

• Establishes state licensing requirements for transient vacation rentals administered by the Department of Commerce and Consumer Affairs, requiring owners to obtain licenses before operating or advertising.

• Requires applicants to submit property information, owner/operator details, local contact information, proof of county compliance, tax registration numbers, and details about online rental platforms used.

• Mandates owners establish client trust accounts in Hawaii financial institutions to hold consumer payments and maintain records for at least two years, with funds only used for rental services or refunds.

• Requires owners to display local contact information (available 24/7) at the property and in advertisements, and submit information to applicable homeowner associations or condominium boards.

• Establishes penalties of $10,000 per violation ($2,000 after warning) and grants enforcement authority to the Department and county zoning agencies, including inspection powers and ability to issue citations and seek injunctions.