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HomeMy WebLinkAboutCOM 0236.071 2024-2026expedia group - May 20, 2025 oil( 41 COMM,236, Council Chair Holeka Goro Inaba s County of Hawaii Hawai'i County Building' 25 Aupuni Street Hilo, Hawai'i 96720 -- = zz Re: Bill 47 CD M) Dear Chair Inaba, Vice Chair Onishi, and Hawai'i County Councilmembers, On behalf of Expedia Group, a family of brands that includes Expedia.com, Hotels.com, and short-term rental leader Vrbo, I am writing to share comments on Bill 47. Expedia Group welcomes balanced regulation and management of short-term rentals and has worked with municipalities around the world to craft, enact, and enforce laws to regulate vacation rentals. Division 3, Platform Requirements Bill 47 would allow county officials to review the transient vacation rental (TVR) registration number, tax map key (TMK) number, and transient accommodations tax (TAT) ID number, so county staff can compare listing information to the county's data for registered TVRs. Expedia Group shares similar reporting with Kauai County, and this reporting and collaboration has helped Kaua'i to drive a high rate of compliance with its short-term rental laws. We appreciate that the legislation would set a consistent standard across the industry by passing a law applying to all hosting platforms. Communication 236.003 Amendment We favor establishing clear guidelines to foster collaboration between Expedia Group and Hawaii County. The amendment introduced via Communication 236.003 is an improvement because it outlines a process for platforms to support county enforcement of county laws and regulations. However, we respectfully request changes to Section 6-53 to further clarify and improve the language. Please see the proposed changes below with new text bolded and deleted text stFieken thFeugh. Comm. rkJo.. .� Ref. To: Ref. Date -4- - � 1111 Expedia Group Way West 1 Seattle, WA, 98119 [USA 1 T +1 206 481 72001 F +1 206 481 7240 expedlogroup.com Section 6-53 Violation; penalty a. Upon determination that a hosting platform is in violation of this division, the planning director shall easeel the fegi tmfieii and -issue a notice of violation and order the hosting platform: 1. To cure the violation within ten business days; 2. If the platform fails to cure the violation pursuant to Section 6-53(a)(1), the director shall order the hosting platform A. To cease and desist from providing booking services to any TVR in the County no later than ninety days from the date of the notice, or a later date as the planning director may determine; and B. To Pay: i) A civil fine for each day in which the violation persists in the amount specified in the order, provided the amount is not less than $1,000 and not more than $10,000; or In the case of a violation of Section 6-52(c), a civil fine of $250. b. Upon determination that a hosting platform is providing booking services for a TVR for which the registration is expired, cancelled, or otherwise invalid, the planning director shall issue to the hosting platform a notice or removal and order: 1. Identifying the TVR to be removed by unique website address or link and the basis for removal; 2. Ordering the hosting platform to seFAees remove the listing for the TVR from the hosting platform no later than ten days from the date of the notice; and 3. Advising the hosting platform that failure to comply with the order constitutes a violation under subsection (a). 4. A hosting platform that complies with this provision shall not be issued a penalty or order pursuant to Section 6-53(a). As currently drafted Section 6-53(a) would require the director to cancel a hosting platform's registration if a single transaction for a TVR without a license took place. If, for example, a transaction took place the same day a TVR's license expired, there is no grace period or opportunity to rectify the situation under 6-53(a). This is inconsistent with the compliance outlined under Section 6-53(b). We recommend clarifying the language to indicate that platform license cancellation is the remedy if platforms do not delist properties that the county has highlighted as improper rather than for a single, inadvertent violation. We also respectfully suggest you amend the language in Section 6-53 (b)(1) to clarify how the department identifies a listing, so platforms can reliably identify the correct listing. Finally, we recommend you clarify the language in Section 6-53(b)(2) to clarify the requirement is to remove a listing. The definition of "booking services" is so broad that it could prevent issuing payments or refunds for previous or ongoing stays. (D 1111 Expedia Group Way West I Seattle, WA, 98119 1 USA I T + 1 206 481 7200I F+l 206 481 7240 expedlagroup.com We applaud the proposed changes to Section 6-52 (a)(4). Including URLs will provide the county with essential information to verify property registrations while offering platforms clarity and consistency in their reporting obligations. Division 3 Effective Date We respectfully request that the Division 3 effective date be pushed out until after the effective date for the rest of the legislation. For TVR owners to obtain a TVR registration number, the county must first set up a registration system and allow time for owners to apply for and receive the registration numbers. In our experience, once an application is available, it typically takes three to six months for operators to apply to register and move through the registration process. Uniformly Formatted Registration Numbers We understand the county is planning to issue uniformly formatted registration numbers, i.e., provide a number with the same number of digits/characters, to all transient vacation rentals, regardless of whether the TVR is registered and operating under the provisions of this bill or the provisions of previous legislation, like Bill 108. We applaud this idea. Without a uniformly formatted number, platforms will not have a clear indication if a rental is exempt from registering under Bill 47 or if a would-be rental needs to register and has not done so. It will also be impossible for platforms to comply with the reporting under section 6-52 since not all rentals would have a "registration number issued under division 1 associated with the TVR". Thank you for the opportunity to provide comments. We look forward to working with Hawaii County Council as it contemplates Bill 47. Please do not hesitate to contact me if there is any additional information we can provide. Mahalo, Mackenzie Chase Regional Manager, Hawaii Expedia Group O 1111 Expedia Group Way West 1 Seattle, WA, 98119 1 USA 1 T + 1 206 481 72001 F + 1 206 481 7240 expediagroup.com