HI HB825

Establishes a new licensing system for transient vacation rentals under the Department of Commerce and Consumer Affairs, requiring owners to obtain licenses before operating rentals for 180 days or less.

Requires licensed owners to maintain client trust accounts at Hawaii financial institutions, post local contact information available 24/7, and include license numbers in all advertisements or solicitations.

Mandates application submissions including property address, owner contact information, local contact details, proof of county compliance, and tax registration numbers for existing rentals.

Authorizes the director to enforce compliance through inspections, investigations, and penalties of $10,000 per violation ($2,000 after warning), with county agencies authorized to assist in enforcement.

Amends tax law Chapter 237D to include club fees in gross rental proceeds calculations and expands the definition of "transient accommodations" to explicitly include transient vacation rentals; effective July 1, 2020.