HB 1348 Summary

• Establishes a new licensing requirement for transient vacation rentals administered by the Department of Commerce and Consumer Affairs, effective July 1, 2019.

• Requires owners to obtain licenses, maintain client trust accounts in Hawaii financial institutions for consumer funds, and establish a 24/7 local contact on the same island as the property.

• Mandates application requirements including property address, tax map key number, owner information, local contact details, proof of county compliance, and tax identification numbers for general excise and transient accommodations taxes.

• Imposes penalties for non-compliance: $2,000 for initial violations, $5,000 for violations after first warning with possible license suspension, and $10,000 for violations after second warning with possible license revocation and property lien.

• Requires online rental service providers to sign memoranda of agreement with the State, providing owner information and allowing director contact regarding suspected violations.