HB 973: RELATING TO TRANSIENT ACCOMMODATIONS.

A BILL FOR AN ACT

RELATING TO TRANSIENT ACCOMMODATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that fully transparent pricing--from the outset of a consumer's Hawaii transient accommodations booking journey--is paramount to enjoying a proper experience of aloha.  Numerous hotel brands have already voluntarily implemented transparent pricing practices by displaying resort and other mandatory fees up front, rather than only before a booking's finalization.

     The legislature further finds that consumers should have access to the same pricing transparency, regardless of the transient accommodations type or channel of distribution.  The legislature also finds that the establishment of a single standard for a mandatory display of fees across the tourism ecosystem's entirety--from hotels, motels, and short-term rental accommodations to online travel agencies, metasearch sites, and short-term rental platforms--will not only prevent consumers from being misled but also ensure a level playing field across the tourism industry.

     Therefore, the purpose of this Act is to require transient accommodations brokers and any other persons or entities to:

     (1)  Offer, list, advertise, or display a transient accommodations rental rate that includes all resort fees required for the furnishing of transient accommodations; and

     (2)  Include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before a consumer reserves the furnishing of transient accommodations.

     SECTION 2.  Chapter 481B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§481B-     Transient accommodations; fee transparency.  (a)  No transient accommodations broker or any other person or entity shall offer, list, advertise, or display a transient accommodations rental rate that does not include all resort fees required for the furnishing of transient accommodations.

     (b)  Transient accommodations brokers and all other persons or entities shall include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before a consumer reserves the furnishing of transient accommodations.

     (c)  Transient accommodations brokers and all other persons or entities that offered, listed, advertised, or displayed a transient accommodations rental rate or total price to be paid in violation of this section shall be subject to a civil penalty not exceeding $10,000 for each violation.

     (d)  An action to enforce this section may be brought by the attorney general or a prosecuting attorney of any county.

     (e)  The duties and obligations imposed by this section shall:

     (1)  Be in addition to any other duties or obligations imposed by law; and

     (2)  Not be construed to relieve any person or entity from any other duties or obligations imposed by law.

     (f)  As used in this section:

     "Resort fee" has the same meaning as in section 237D-1.

     "Taxes and fees imposed by a government on the stay" means taxes levied under chapter 237, taxes levied under chapter 237D, and any applicable transient accommodations taxes levied by a county.

     "Transient accommodations" has the same meaning as in section 237D-1.

     "Transient accommodations broker" has the same meaning as in section 237D-1.

     "Transient accommodations rental rate" means the rate, including any applicable resort fees but excluding any taxes and fees imposed by a government on the stay, at which transient accommodations are to be furnished to a consumer."

     SECTION 3.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on January 1, 3000.

Report Title:

Transient Accommodations; Rates; Transparency; Unfair Method of Competition; Unfair or Deceptive Acts; Penalties

Description:

Requires transient accommodations brokers and any other persons or entities to offer, list, advertise, or display a transient accommodations rental rate that includes all resort fees required for the furnishing of transient accommodations.  Requires transient accommodations brokers and any other persons or entities to include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before the consumer reserves the furnishing of transient accommodations.  Establishes penalties.  Effective 1/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to transient accommodations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that fully transparent pricing--from the outset of a consumer's Hawaii transient accommodations booking journey--is paramount to enjoying a proper experience of aloha.  Numerous hotel brands have already voluntarily implemented transparent pricing practices by displaying resort and other mandatory fees up front, rather than only before a booking's finalization.

     The legislature further finds that consumers should have access to the same pricing transparency, regardless of the transient accommodations type or channel of distribution.  The legislature also finds that the establishment of a single standard for a mandatory display of fees across the tourism ecosystem's entirety--from hotels, motels, and short-term rental accommodations to online travel agencies, metasearch sites, and short-term rental platforms--will not only prevent consumers from being misled but also ensure a level playing field across the tourism industry.

     Therefore, the purpose of this Act is to require transient accommodations brokers and any other persons or entities to:

     (1)  Offer, list, advertise, or display a transient accommodations rental rate that includes all resort fees required for the furnishing of transient accommodations; and

     (2)  Include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before a consumer reserves the furnishing of transient accommodations.

     SECTION 2.  Chapter 481B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§481B-     Transient accommodations; fee transparency.  (a)  No transient accommodations broker or any other person or entity shall offer, list, advertise, or display a transient accommodations rental rate that does not include all resort fees required for the furnishing of transient accommodations.

     (b)  Transient accommodations brokers and all other persons or entities shall include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before a consumer reserves the furnishing of transient accommodations.

     (c)  Transient accommodations brokers and all other persons or entities that knew or should have known that they offered, listed, advertised, or displayed a transient accommodations rental rate in violation of this section shall be subject to a civil penalty not exceeding $10,000 for each violation.

     (d)  An action to enforce this section may be brought by the attorney general or a prosecuting attorney of any county.

     (e)  The duties and obligations imposed by this section shall:

     (1)  Be in addition to any other duties or obligations imposed by law; and

     (2)  Not be construed to relieve any person or entity from any other duties or obligations imposed by law.

     (f)  As used in this section:

     "Resort fee" has the same meaning as in section 237D-1.

     "Taxes and fees imposed by a government on the stay" means taxes levied under chapter 237, taxes levied under chapter 237D, and any applicable transient accommodations taxes levied by a county.

     "Transient accommodations" has the same meaning as in section 237D-1.

     "Transient accommodations broker" has the same meaning as in section 237D-1.

     "Transient accommodations rental rate" means the rate, before the inclusion of taxes and fees imposed by a government on the stay, at which transient accommodations are to be furnished to a consumer."

     SECTION 3.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on January 1, 2026.

Report Title:

Transient Accommodations; Rates; Transparency; Unfair Method of Competition; Unfair or Deceptive Acts; Penalties

Description:

Requires transient accommodations brokers and any other persons or entities to offer, list, advertise, or display a transient accommodations rental rate that includes all resort fees required for the furnishing of transient accommodations.  Requires transient accommodations brokers and any other persons or entities to include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before the consumer reserves the furnishing of transient accommodations.  Establishes penalties.  Effective 1/1/2026.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  128

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 973

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Tourism, to which was referred H.B. No. 973 entitled:

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS,"

begs leave to report as follows:

     The purpose of this measure is to require transient accommodations brokers and any other persons or entities to:

     (1)  Offer, list, advertise, or display a transient accommodations rental rate that includes all resort fees required for the furnishing of transient accommodations; and

     (2)  Include all applicable taxes and fees imposed by a government on the stay in the total price to be paid before a consumer reserves the furnishing of transient accommodations.

     Your Committee received testimony in support of this measure from the Hawaiʻi Hotel Alliance and American Hotel & Lodging Association.  Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs.

     Your Committee finds that the establishment of a single standard for a mandatory display of fees across the tourism ecosystem's entirety--from hotels, motels, and short-term rental accommodations to online travel agencies, metasearch sites, and short-term rental platforms--would prevent consumers from being misled and ensure a level playing field across the tourism industry.

     Your Committee has amended this measure by:

     (1)  Removing the requirement that only if transient accommodations brokers and all other persons or entities knew or should have known that they offered, listed, advertised, or displayed a transient accommodations rental rate in violation of this measure would they be subject to civil penalties;

     (2)  Changing its effective date to January 1, 3000, to encourage further discussion; and

     (3)  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 Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 973, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 973, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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