STAND. COM. REP. NO. 2519

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2123

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2123, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO ZONING,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify county zoning authority by:

 

     (1)  Distinguishing single-family residential use from single-family vacation rental use; and

 

     (2)  Allowing a zoning ordinance to amortize nonconforming single-family transient vacation rentals over a reasonable period.

 

     Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; Hawaii State Association of Counties; City and County of Honolulu, Department of Planning and Permitting; County of Kauai, Planning Department; Kailua Neighborhood Board; and five individuals.  Your Committee received testimony in opposition to this measure from the Hawaii Association of REALTORS, Rentals by Owner Awareness Association, and seven individuals.

 

     Your Committee finds that the proliferation of vacation rentals in areas zoned for single-family residential use has created planning-related challenges for counties and highlights the need for clarity in state law governing this issue.  Ambiguity in existing law has enabled vacation rental operators to argue their use is residential, despite these operators' obligations to pay transient accommodation taxes and general excise taxes, similar to the taxation obligations of resort-use entities like hotels.

 

     Your Committee further finds that this measure recognizes the counties' home rule authority to treat single-family transient vacation rental use distinctly from single-family residential use and enables the counties to gradually phase out nonconforming single-family transient vacation rentals.  Finally, your Committee notes that this measure is intended to clarify the counties' zoning authority.  Any effort by the counties to amortize non-conforming vacation rentals would still need to be implemented fully by ordinance.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2123, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

 

 

 

________________________________

ROSALYN H. BAKER, Chair