The House Committee on Tourism voted Feb. 4, 2025, to pass with amendments House Bill 972, a measure that would authorize condominium associations and planned community associations located in zoning districts that allow transient vacation rentals to impose an impact fee on owners who use their units as transient vacation rentals.

The measure drew limited public testimony but prompted committee discussion about enforcement and limits on fees. Tom Yamachika of the Tax Foundation of Hawaii testified that the bill may not be effective where condominium powers are governed by private contractual documents. "We have some, concerns about whether this bill will actually do anything because the, powers that, association condo associations and PUD associations wield are contractual," Yamachika said. "They come from their, the the declaration of covenants, conditions, and restrictions that are, that run with the land and that are, signed on to by people when they buy into the development. So, you can certainly enact this statute to give condo associations this power if, you know, if they want to."

Committee members decided to move the bill forward as an HD1. The committee instructed staff to fill the blank date fields in the draft with "30 days" for now and asked that the committee report consider a maximum limit for any fee so the authority cannot be "weaponized and abused," a proposal credited to Representative Matsumoto by the chair during deliberations. The chair announced a recommendation to pass with amendments and the recommendation was adopted by roll call.

Voting recorded on the measure showed the chair and vice chair voting "aye." Representative Hussey, Representative Illega, Representative Todd and Representative Matsumoto also voted "aye." Representative Holt was recorded as excused. The committee adopted the chair's recommendation and the bill will be reported out as HD1 for further consideration.

No other substantive public testimony was recorded in the transcript; the committee recessed for decision making and reconvened to take the vote.

Next steps: staff will prepare the HD1 with the committee's edits, including the filled dates and a possible cap on the fee for the committee's report. The transcript does not specify any maximum dollar amount, enforcement mechanisms, or effective dates beyond the committee's instruction to insert 30 days in the draft.