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HB1266
HOUSE OF REPRESENTATIVES
H.B. NO.
1266
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to short-term VACATION rentals
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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This Act shall be known and may be cited as the Hawaii Short-Term Vacation
Rental Accountability and Community Protection Act.
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SECTION 2.
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The legislature finds that owners and
operators of short-term vacation rentals in Hawaii must act as responsible
stewards within their communities.
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Accordingly, the purpose of this Act
is to:
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(1)
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Establish a state
agency dedicated to liaising with respective county permitting departments;
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(2)
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Formalize a
process to address community complaints;
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(3)
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Enforce compliance
with existing laws and ordinances; and
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(4)
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Create penalties
for non-compliance, including fines and revocation of permits.
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SECTION 3.
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The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:
"
Chapter
HAWAII COMMUNITY HOUSING AND RENTAL OVERSIGHT
AGENCY
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-1
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Definitions.
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As used in this
chapter, unless the context otherwise requires:
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"Agency" means the Hawaii
community housing and rental oversight agency.
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"Community" or "community
members" means residents of the State who reside or work in a neighborhood
where short-term vacation rentals are in operation.
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"County planning
department" means the planning department of the counties of Kauai, Maui,
and Hawaii and the department of planning and permitting of the city and county
of Honolulu, or other appropriate agency as designated by the county councils.
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"Short-term vacation
rental" means a lodging that provides guest accommodation for less than thirty
consecutive days.
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Hawaii community housing and rental oversight agency; established.
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(a)
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There is established the Hawaii community housing and rental oversight
agency, to be attached to the department of commerce and consumer affairs for
administrative purposes.
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(b)
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The agency shall be headed by an executive director, who shall be
appointed by, and who shall serve at the pleasure of, the director of commerce
and consumer affairs.
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The executive
director shall not be subject to chapters 76 or 89 but shall be included in any
benefit program generally applicable to officers and employees of the State.
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Duties
and responsibilities.
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(a)
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The agency shall serve as a liaison between
the community, county planning departments, and other public and private
entities.
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(b)
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To perform its duties under subsection (a), the agency shall:
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(1)
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Develop a
centralized system to collect, track, and address complaints regarding
short-term vacation rentals;
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(2)
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In coordination
with the community, county planning departments, and other parties, develop community
standards of conduct applicable to short-term vacation rentals, guests staying
at short-term vacation rentals, and operators of short-term vacation rentals;
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(3)
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Collaborate with
the county planning departments to investigate complaints and enforce
regulations relating to short-term vacation rentals and ensure that community
standards are upheld;
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(4)
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Provide
educational resources and outreach to community members relating to short-term
vacation rentals, including:
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(A)
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Rights of
community members;
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(B)
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Procedures to file
complaints; and
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(C)
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Other potential
methods to obtain recourse; and
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(5)
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No later than
twenty days prior to the convening of each regular session, submit to the
legislature an annual report that includes:
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(A)
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The number of
complaints received by the agency during the preceding year and a summary of
the nature of those complaints;
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(B)
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Actions taken by
the agency, county planning departments, or other agencies to address the
complaints;
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(C)
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A summary of the
final resolution of those complaints;
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(D)
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The agency's
assessment of this chapter's effectiveness;
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(E)
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Any proposed
changes to this chapter, including refinements to the agency's complaint and
enforcement procedures; and
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(F)
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Any other findings
and recommendations, including proposed legislation.
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(c)
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In performing its responsibilities under this chapter, the agency may:
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(1)
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Enter into contracts
necessary to perform its duties;
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(2)
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Provide advice to
the governor, director of commerce and consumer affairs, county planning
departments, and other persons on any matter relating to short-term vacation
rentals;
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(3)
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Initiate in a
court of competent jurisdiction proceedings necessary to foreclose on property pursuant
to section
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-6(c);
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(4)
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Adopt rules in
accordance with chapter 91 that are necessary for the purposes of this chapter;
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(5)
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Subject to
available funds, hire employees and set their duties; and
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(6)
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Take any other
actions necessary to perform its duties under this chapter.
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Complaints;
procedures.
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(a)
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The agency, in coordination with the county
planning departments, shall develop and maintain a centralized system for community
members to submit complaints regarding short-term vacation rentals, including
noise complaints, safety complaints, or other nuisances.
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(b)
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The agency shall adopt rules pursuant to chapter 91 governing the
response to complaints received using the system; provided that, at a minimum, the
agency shall provide to the complainant:
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(1)
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Within seventy-two
hours of receiving the complaint, a written response acknowledging receipt of a
complaint; and
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(2)
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Within ten working
days after the acknowledgement pursuant to paragraph (1), a report detailing
either the status or outcome of the complaint.
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The agency shall coordinate with the appropriate
county planning department in writing the report required under this paragraph.
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(c)
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The agency shall maintain a public log of complaints and the resolution
of those complaints; provided that the agency shall ensure that no information
shall be included that could reasonably allow a person to determine the
identity of a complainant.
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Prohibition
of unpermitted operations.
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No person
shall operate a short-term vacation rental without the necessary permits
required by law.
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Enforcement;
penalties.
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(a)
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If, after investigating a complaint under
section -4, the agency determines that a person is
in violation of:
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(1)
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Section
-5;
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(2)
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A state or county
law, ordinance, or rule; or
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(3)
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The community
standards developed under section ‑3(b)(2),
the agency may order a short-term vacation rental
operator to cease operations and impose a penalty as provided in subsection (b).
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(b)
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A person who is ordered to cease operations under subsection (a) shall
make all identified corrective actions and provide the agency proof that the
violations identified by the agency have been corrected.
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If the agency is satisfied that the
violations have been corrected, the agency shall terminate the order to cease
operations and authorize the person to resume operations.
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(c)
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A person found in violation pursuant to subsection (a) shall be subject
to the following penalties:
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(1)
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For a first
violation, a fine of up to $10,000 per day until the person either obtains the
required permits, terminates the activity that is the subject of the violation,
or otherwise rectifies the violation; and
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(2)
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For a second or subsequent
violation:
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(A)
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A fine of up to
$20,000 per day until the person either obtains the required permits, terminates
the activity that is the subject of the violation, or otherwise rectifies the
violation;
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(B)
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Revocation of
permits necessary to operate the short-term vacation rental;
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(C)
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Confiscation of
the property pursuant to foreclosure proceedings as provided by law; or
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(D)
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Any combination of subparagraphs (A) through
(C).
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(d)
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The penalties imposed under this chapter shall be in addition to any
other penalties that may be imposed under any other law or ordinance."
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SECTION 4.
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Chapter 421J, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:
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�421J-
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Short-term vacation rentals; restrictions;
conflicts.
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(a)
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No person who owns, operates, or holds a financial interest in a
short-term vacation rental within a planned community shall:
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(1)
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Vote on any matter
relating to the regulation or operation of short‑term vacation rentals
within the planned community; or
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(2)
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Serve on the
board of directors for the association that governs the planned community.
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(b)
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Each planned community's association documents shall include provisions
that require members to declare whether the person owns, operates, or holds a
financial interest in a short‑term vacation rental within the planned
community, and transparently document those declaration to ensure that the
restrictions in subsection (a) are enforced.
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SECTION 5.
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Chapter 514B, Hawaii Revised Statutes, is
amended by adding a new section to part VI to be appropriately designated and
to read as follows:
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�514B-
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Short-term vacation rentals; restrictions;
conflicts.
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(a)
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No person who owns, operates, or holds a financial interest in a unit
used as a short-term vacation rental within a condominium shall:
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(1)
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Vote on any
matter relating to the regulation or operation of short‑term vacation
rentals within the condominium; or
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(2)
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Serve on the
board of directors for the association that governs the condominium.
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(b)
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Each condominium's bylaws shall include provisions that require unit
owners to declare whether the person owns, operates, or holds a financial
interest in a short-term vacation rental within the condominium, and
transparently document those declarations to ensure that the restrictions in
subsection (a) are enforced.
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SECTION
6.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $
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or so much thereof as may be
necessary for fiscal year 2025-2026 and the same sum or so much thereof as may
be necessary for fiscal year 2026-2027 to implement section 3 of this Act,
including the establishment of
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full-time equivalent (
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FTE)
positions.
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The sums
appropriated shall be expended by the department
of commerce and consumer affairs for the purposes of this Act.
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SECTION
7
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This Act does
not affect rights and duties that matured, penalties that were incurred, and
proceedings that were begun before its effective date.
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SECTION 8.
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This Act shall take effect on January 1,
2026.
INTRODUCED BY:
_____________________________
Report Title:
Short-Term
Vacation Rentals; Enforcement Agency; Establishment; DCCA; Counties; Penalties;
Condominiums; Community Associations; Appropriations
Description:
Establishes the Hawaii Community Housing and Rental
Oversight Agency within the Department of Commerce and Consumer Affairs to establish
and oversee a process for receiving and addressing complaints relating to
short-term vacation rentals, in coordination with the county planning
departments.
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Establishes penalties for
noncompliance.
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Prohibits persons with
interests in short-term vacation rentals from serving on governing boards of
planned communities and condominiums.
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Appropriates moneys.
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not legislation or evidence of legislative intent.