HB 2730 Summary

• Establishes a new licensing system for transient vacation rentals administered by the Department of Commerce and Consumer Affairs, requiring owners to obtain licenses before operating in Hawaii

• Mandates that transient vacation rental owners establish client trust accounts at Hawaii financial institutions to hold consumer payments and maintain records for at least two years

• Requires owners to designate a local contact available 24/7, prominently display license numbers and official seals in advertisements, and comply with all county ordinances and homeowner association rules

• Imposes escalating penalties including $2,000 civil penalty for initial violations, $5,000 for second violations with license suspension, and $10,000 with license revocation and property liens for subsequent violations

• Requires online vacation rental platforms to sign memoranda of agreement with the state and provide owner information and property addresses to the director and relevant county agencies

• Effective date: July 1, 2020