STAND. COM. REP. NO.  29

 

Honolulu, Hawaii

                , 2015

 

RE:   H.B. No. 571

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Sir:

 

     Your Committee on Tourism, to which was referred H.B. No. 571 entitled:

 

"A BILL FOR AN ACT RELATING TO CONDOMINIUM CONVERSIONS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to clarify reporting requirements relating to condominium conversions by requiring a condominium hotel developer to disclose information on the amount levied and paid for the past three years, for general excise taxes and transient accommodations taxes, and requiring each registered condominium hotel operator to file an annual report with the Real Estate Commission.

 

     UNITE HERE Local 5 and a concerned individual supported this measure.  Outrigger Enterprises Group opposed this measure.  The Real Estate Commission offered comments.

 

     Your Committee notes that the Real Estate Commission testified that it has limited expertise and capabilities to collect and retain general excise tax and transient accommodations tax information on hotel or condominium hotel units, and thus requested removing that responsibility from the Real Estate Commission, as proposed in this measure.  Your Committee also notes that businesses may face a competitive disadvantage by having to disclose confidential and proprietary information, such as tax information of a prior hotel operator, the number and type of units managed, and the number of employees employed by operators who manage a rental program at a condominium project.  Although your Committee acknowledges these concerns, it is passing this measure to facilitate further discussion.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments for 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. 571, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 571, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

 

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

 

 

 

 

____________________________

TOM BROWER, Chair