STAND. COM. REP. NO. 2109-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 83

S.D. 2

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 83, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOTELS,"

begs leave to report as follows:

The purpose of this measure is to require hotelkeepers to provide adequate notice of service disruptions to third-party vendors and guests under certain conditions.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; International Longshore & Warehouse Union; Hawaii State AFL-CIO; and International Longshore & Warehouse Union Local 142. Your Committee received testimony in opposition to this measure from Mauna Kea Resort; Kohala Coast Resort Association; Maui Chamber of Commerce; Hawaii Hotel Alliance; and American Hotel & Lodging Association. Your Committee received comments on this measure from UNITE HERE Local 5 and Expedia Group.

Your Committee finds that informational asymmetry is a recognized problem in the visitor industry, wherein hotels possess real-time knowledge of material service disruptions – such as construction, labor disputes, or unavailable amenities – while prospective guests, particularly out-of-state or international travelers, must make reservation decisions based on incomplete or outdated information. This imbalance is especially significant in Hawaii, where visitors often incur substantial, non-refundable travel costs and rely heavily on representations about the quality and nature of their stay. Your Committee further finds that a lack of timely and clear notice regarding such disruptions may limit consumers' ability to make informed decisions, including whether to proceed with or cancel a reservation without financial penalty. By requiring reasonable notice of service disruptions to guests and third-party vendors, this measure promotes transparency, fairness, and consumer protection while supporting confidence in the State's visitor accommodations sector.

Your Committee has amended this measure by:

(1) Clarifying that a hotelkeeper is required to directly provide notice of a service disruption to third-party vendors and prospective guests that have entered into an agreement, a booking, or a reservation with the hotelkeeper or third-party vendors;

(2) Deleting the requirement that a notice be provided on all modifiable platforms or mediums used by the hotelkeeper;

(3) Clarifying the event-triggered notice deadlines for third-party vendors, prospective guests, and guests by:

(A) Deleting the deadline that is upon receiving notice that a service disruption may occur; and

(B) Inserting a deadline that is, if a service disruption is reasonably anticipated, within twenty-four hours of the hotelkeeper receiving notice of the anticipated service disruption or five days before the anticipated service disruption, whichever is less;

(4) Deleting the authority for a guest to terminate the remainder of an agreement, a booking, or a reservation due to a service disruption;

(5) Requiring a hotelkeeper to reimburse a guest for the value, based on a good faith estimate by the hotelkeeper, of the hotel services or amenities disrupted or deprived by the service disruption;

(6) Amending the conditions that constitute a service disruption by:

(A) Deleting the condition regarding infestations of insects or rodents;

(B) Adding the condition for planned construction work in or directly related to the hotel that creates excessive noise that is likely to substantially disturb a guest, except construction that is intended to correct an emergency condition or other conditions requiring immediate attention; and

(C) Clarifying that the strike, lockout, or work stoppage is authorized by the affirmative vote of a labor organization's members; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 83, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 83, S.D. 2, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair