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House committee advances bill requiring hotels and brokers to show full price, removes intent requirement
Summary
House Bill 973, aimed at requiring transient accommodations brokers and others to display total prices including resort fees and taxes, was advanced as an HD1 with an amendment eliminating an intent standard and with technical fixes; stakeholders and the Department of Commerce and Consumer Affairs discussed overlap with an FTC rule.
House Bill 973, which would require transient-accommodation brokers and other sellers to display the total price for lodging including resort fees and all applicable taxes, was advanced by joint House committees on Jan. 30, 2025, with amendments that remove a proposed intent requirement and leave technical matters to stakeholder negotiation.
Madam Moriarty for the Department of Commerce and Consumer Affairs’ Office of Consumer Protection (OCP) told committees that the bill aligns with the goal of eliminating “junk fees” but expressed institutional concerns. OCP said a federal uniform standard adopted by the Federal Trade Commission that will affect short-term lodging nationwide is set to take effect May 10, and urged caution. OCP also urged deletion of a defendant-intent proof requirement from the bill, saying that most state consumer-protection statutes do not require proof of intent.
Ivan Louie Quan (testifying on behalf of the Hawaii Hotel Alliance and EHLA) told committees the measure would bring transparency and uniformity across lodging providers and said the hotel industry can work with the division on enforcement. “What it does is it really provides transparency for consumers and, we think it also provides some uniformity among all of the lodging units,” he said. Counsel for the hotel industry noted the bill is consistent with similar regulations and rules elsewhere.
Other commenters, including Angela Mela Young and the Tax Foundation’s written comments, supported the transparency goal but raised enforcement and fine-size concerns. The committees adopted the chair’s recommendation to pass HB 973 as HD1, strip the intent requirement, and make technical amendments; members noted stakeholders would continue to work with staff on drafting for clarity and enforcement mechanisms.
The committee recorded a unanimous voice vote in favor of the recommendation after the amendment to remove the intent requirement was set. The bill will proceed as HD1 for further consideration.
