HomeMy WebLinkAboutCOM 0236.177 2024-2026Or
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kk INNOVATION ECONOMY
June 3, 2025
Dr. 'Holeka Goro Inaba
Council Chair, County of Hawaii
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 96720
TechNet Southwest I Telephone 909.380.2783
915 L Street, Suite 1270, Sacramento, CA 95814
www.technet.org I @TechNetSW
COUNTY CLERK
COUNTY OF RAWAI'I
RECEIVED
Time 12.�2pm.
Date JUN 0 3 2025
Re: Bill No. 47 — Transient Vacation Rental — Oppose
Dear Council Chair Goro Inaba and Council Members of the County of Hawaii:
TechNet must respectfully oppose Bill No. 47, which would create significant new
regulations on short-term rentals, or "Transient Vacation Rentals (TVRs)" as used in
the bill. Such regulations would undermine the digital tools powering the tourism
economy in the County of Hawaii and create burdensome barriers for local
residents. Additionally, TechNet has concerns that the bill imposes burdensome
data -sharing requirements and raises privacy and liability concerns for "hosting
platforms."
TechNet is the national, bipartisan network of technology CEOs and senior
executives that promotes the growth of the innovation economy by advocating a
targeted policy agenda at the federal and 50-state level. TechNet's diverse
membership includes dynamic American businesses ranging from startups to the
most iconic companies on the planet and represents five million employees and
countless customers in the fields of information technology, artificial intelligence, e-
commerce, the sharing and gig economies, advanced energy, transportation,
cybersecurity, venture capital, and finance.
Impact on Local Economy
Bill No. 47 poses serious risks to the local economy. TVRs have become a critical
part of Hawaii's tourism infrastructure. By over -regulating TVRs, the County could
reduce lodging options for visitors, discourage travel to certain parts of the island,
reduce tourism spending, and undermine local entrepreneurship which thousands of
residents rely on to generate income. Local hosts use digital platforms to manage
bookings, attract guests, and offer unique locally rooted experiences. Heavy-
handed regulation could force local residents and entrepreneurs out of a vital
income stream.
TVRs are a backbone of the economy on the island and represent a significant share
of the state's tourism market. In 2023, 29.6% of visitors stayed in a TVR and spent
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TECH N ET
THE VOICE OF THE
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an estimated $6.1 billion.' Within Hawaii island, visitors staying in a TVR spent an
estimated $1.3 billion.z Additionally, spending by Hawaii Island TVR visitors in 2023
generated an estimated $24.8 million in County General Excise Tax and Transient
Accommodations Tax.
Privacy Concerns
Bill No. 47 requires an extensive amount of information to be collected and shared,
but it does not provide any clear protections on how such personally identifiable
information will be secured and protected by the County in order to prevent data
breaches. Additionally, the bill includes a vague requirement that the director of
finance may ask for even more information if the director "may require" it and
requires owners of TVRs to consent to their personally identifiable information being
disclosed by hosting platforms in the platforms' mandated monthly reporting.
Strict Enforcement Measures and Liability
Bill No. 47 imposes an unreasonably high level of liability on hosting platforms,
treating them not as intermediaries but as enforcers of local regulations, tax
compliance, and registration status. This approach places platforms at risk of steep
civil fines and places an undue burden by requiring platforms to focus their
resources on mandated reporting.
More Time Needed
Taking into consideration that this legislative body intends to consider future land
use and host eligibility, this bill seems premature. Additional time is needed to
study and learn about the economic impacts this bill would create within the
County.
As currently proposed, this bill would send a destabilizing signal to the visitor
industry and digital economy more broadly. We respectfully urge the Council to
oppose this measure at this time. Thank you for your consideration. If you have
any questions or concerns regarding our position, please contact me at
itorresCa)technet.org or 909-380-2783.
Sincerely,
Jose Torres, MPA
Deputy Executive Director for California and the Southwest
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