STAND. COM. REP. NO. 1846-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2919

S.D. 2

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2919, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROPERTY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Clarify the counties' authority to:

(A) Regulate the time, place, manner, and duration in which uses of land and structures may take place; and

(B) Amortize or phase out transient vacation rental units in an area of any zoning classification; and

(2) Expand the scope of the transient accommodations tax law to include certain shelters and, beginning January 1, 2025, vehicles with sleeping accommodations.

Your Committee received testimony in support of this measure from the Mayor of the County of Maui; one member of the Maui County Council; Keep it Kailua; Kohala Coast Resort Association; Sierra Club of Hawaiʻi; Lāhainā Strong; Maui Housing Hui; Housing Hawaiʻi's Future; Tagnawa; Jewish Voice for Peace-Hawaiʻi; Hawaii's Thousand Friends; UNITE HERE Local 5; AF3IRM Hawaiʻi; Kauai Oceanfront Dream LLC; International Longshore & Warehouse Union Local 142; Hawaii Hotel Alliance; Hawaiʻi Lodging & Tourism Association; Help Maui Rise; Puakukui Owners/Residents Neighborhood Organization; and numerous individuals.

Your Committee received testimony in opposition to this measure from Tropica USA Corp.; The Ohana Aina Association; Maui Paradise Properties; Hawaii First Realty LLC; Oʻahu Short Term Rental Alliance; Hawaiʻi Association of REALTORS; Hawaiʻi Mid and Short-Term Rental Alliance; QNL Holdings Inc.; Air Tec Co.; Realtors Association of Maui, Inc.; Airbnb; Hawaii Legal Short Term Rental Alliance; Kauaʻi Board of REALTORS; Private Homes Hawaii; Maui Chamber of Commerce; Honolulu Board of REALTORS; Maui Vacation Rental Association; West Hawaii Association of REALTORS; Deep Blue Builders; Hearts for Animals Wellness Center; Vertigo Associates LLC; Kapua Gulch Farms, LLC; Kina's Maui Condo Rentals LLC; Kona Bubbles; and numerous individuals.

Your Committee received comments on this measure from the Department of Taxation; Kamaʻāina Occupied Short-Term Rentals Oʻahu; Hawaiʻi Alliance for Progressive Action; Airbnb Public Policy, Hawaiʻi; Grassroot Institute of Hawaii; Maui Hotel & Lodging Association; Tax Foundation of Hawaii; and five individuals.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2919, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2919, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair