2018-03-19 Letter to Glenn Wakai and Clarence K. Nishihara re HB 2605, HD 2, Proposed SD 1 Relating to Transient Accomodations

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Harry Kim Alayor Wil Okabe Managing Director Barbara J. Kossow Deputy Managing Director Offirr of ffir 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 (808) 323-4444 • Fax (808) 323-4440 March 19, 2018 Senator Glenn Wakai, Chair Committee on Economic Development, Toursand Technology Hawail State Capitol, Room 414 Honolulu, HI 96813 Senator Clarence K. Nishihara, Chair Committee on Public Safety, Intergovem ental, and Mitary Affairs Hawai`i State Capitol, Room 414 Honolulu, HI 96813 Dear Chair Wakai and Nishihara, and Committee Members: Re: HB 2605, HD 2, Proposed SD 1, Relating to Transient Accommodations Hearing Date: 03-21-18 — 1:45 pm; Conference Room 414 Thank you for the opportunity to comment on proposed amendments to HB 2605, HD 2. 1 mostly will limit my remarks to Section 14 of the proposed SD 1. Section 14 would allocate an unspecified percentage of GET and TAT tax revenues to the counties, contingent upon establishment of a process to provide verification of compliance by an operator or plan manager with county land use laws. I cannot tell from the language whether this allocation is meant to replace or to supplement the TAT funds that the counties presently receive. Only if these payments would be in addition to current allocations, could Hawail County support it. A second point is that, if the State is looking for increased enforcement of vacation rentals, what is the financial impact of that increased enforcement? It is more inspectors, and more appeals, and contested cases on enforcement of vacation rentals, and the problem will persist indefinitely. Therefore the payments to the counties should be every year. I think, but am not certain, that Section 14 is providing annual allocations to the counties. I would ask that the language be made clearer, to avoid any ambiguity. Then third, the question remaining would be the amount. What is the right amount for the State to invest in fixing this problem? As formerly provided, a $1 million allocation per county seemed viable. Anything less would be inadequate to solve the problem with vacation rental enforcement. In closing, I would note that previous versions of this bill gave a lot more teeth to enforce on third party platforms, i.e., Airbnb and VRBO. Gutting that language will make it harder for counties to enforce illegal vacation rentals, so if the State is looking for meaningful enforcement, please consider restoring the stricter language. ectfully sub Harry Kim Mayor, County of Hawaii County of Hawaii is an Equal Opportunity Provider and Employer. ed,