HB 1266 Summary

• Establishes the Hawaii Community Housing and Rental Oversight Agency within the Department of Commerce and Consumer Affairs to coordinate with county planning departments on short-term vacation rental regulation and enforcement.

• Creates a centralized complaint system requiring the agency to acknowledge complaints within 72 hours and provide a status or outcome report within 10 business days.

• Imposes penalties for violations including first offense fines up to $10,000 per day and second or subsequent offense fines up to $20,000 per day, plus potential permit revocation and property foreclosure.

• Prohibits owners, operators, or financial interest holders in short-term vacation rentals from voting on short-term rental regulations or serving on boards of condominiums and planned communities.

• Appropriates funds to implement the agency and takes effect January 1, 2026.