| 47 | | - | SECTION 1. The legislature finds that booking agencies often do not include government-related fees and taxes in their advertised rates and prices. Because fees and taxes are usually added as a surcharge after a consumer initiates a purchase, consumers often are misled by advertised prices and find themselves paying a higher price than they had originally intended. While government-related taxes and fees may be itemized during the purchase process, the legislature believes that consumers have a right to make informed purchases regarding the total price to be paid before a transaction commences. The legislature notes that there is national support to reduce and eliminate mandatory fees that often hide the full price of a good or service and surprise fees that consumers learn about after purchase. For example, the federal Junk Fee Prevention Act, S. 916. 118th Cong. (2023) was introduced to curb and eliminate excessive, hidden, and unnecessary fees that are unexpectedly imposed on consumers, and California recently passed the Consumers Legal Remedies Act, 2023, which, in part, would make it unlawful to advertise, display, or offer a price for a good or service that does not include all mandatory fees or charges other than taxes or fees imposed by a government on the transaction. Accordingly, the purpose of this Act is to: (1) Prohibit any person from advertising, displaying, or offering a price for the rental or letting of a transient accommodation or resort time share vacation unit that does not include all taxes and fees on the rent imposed by a government entity that the renter or guest must pay; (2) Require a person to clearly and conspicuously display in each advertisement for the rental or letting of a transient accommodation or resort time share vacation unit a price that includes all taxes and fees on the rent imposed by a government entity that a renter or guest must pay; and (3) Require any taxes and fees that are displayed as a percentage of the cost on a covered booking transaction to also be displayed as a dollar amount at the time of purchase. SECTION 2. Chapter 481B, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§481B- Transient accommodations; booking transactions; total price; disclosures; taxes; government-related fees. (a) No person shall advertise, display, or offer a price for rental or letting of a transient accommodation or resort time share vacation unit that does not include all taxes and fees imposed by a government entity to be charged to the renter or guest. (b) A person shall clearly and conspicuously display in each advertisement for rental or letting of a transient accommodation or resort time share vacation unit, including online advertisements, a price that includes all taxes and fees imposed by a government entity and to be charged to the renter or guest. (c) Any taxes and fees on a booking transaction that are displayed as a percentage of the cost at the time of purchase shall also be displayed as a dollar amount. (d) For the purposes of this section: "Booking transaction" means any transaction in which there is a charge to a consumer by a person for rental or letting of any transient accommodation or resort time share vacation unit. "Government entity" has the same meaning as defined in section 137-1. "Resort time share vacation unit", and "transient accommodations" have the same meanings as defined in section 237D-1." SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 4. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2040. |
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| 47 | + | SECTION 1. The legislature finds that booking agencies often do not include government-related fees and taxes in their advertised rates and prices. Because fees and taxes are usually added as a surcharge after a consumer initiates a purchase, consumers often are misled by advertised prices and find themselves paying a higher price than they had originally intended. While government-related taxes and fees may be itemized during the purchase process, the legislature believes that consumers have a right to make informed purchases regarding the total price to be paid before a transaction commences. The legislature notes that there is national support to reduce and eliminate mandatory fees that often hide the full price of a good or service and surprise fees that consumers learn about after purchase. For example, the federal Junk Fee Prevention Act, S. 916. 118th Cong. (2023) was introduced to curb and eliminate excessive, hidden, and unnecessary fees that are unexpectedly imposed on consumers, and California recently passed the Consumers Legal Remedies Act, 2023, which, in part, would make it unlawful to advertise, display, or offer a price for a good or service that does not include all mandatory fees or charges other than taxes or fees imposed by a government on the transaction. Accordingly, the purpose of this Act is to: (1) Prohibit any person from advertising, displaying, or offering a price for a transient accommodation or resort time share vacation interest, plan, or unit that does not include all taxes and fees imposed by a government entity at the time of purchase; (2) Require a person to clearly and conspicuously display in each advertisement for a transient accommodation or resort time share vacation interest, plan, or unit a price that includes all taxes and fees imposed by a government entity; and (3) Require any taxes and fees that are displayed as a percentage of the cost on a booking transaction to also be displayed as a dollar amount at the time of purchase. SECTION 2. Chapter 481B, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§481B- Transient accommodations; booking transactions; total price; disclosures; taxes; government-related fees. (a) No person shall advertise, display, or offer a price for a transient accommodation or resort time share vacation interest, plan, or unit that does not include all taxes and fees imposed by a government entity to be charged at the time of purchase. (b) A person shall clearly and conspicuously display in each advertisement for a transient accommodation or resort time share vacation interest, plan, or unit, including online advertisements, a price that includes all taxes and fees imposed by a government entity. (c) Any taxes and fees on a booking transaction that are displayed as a percentage of the cost at the time of purchase shall also be displayed as a dollar amount. (d) For the purposes of this section: "Booking transaction" means any transaction in which there is a charge to a consumer by a person for any transient accommodation or resort time share vacation interest, plan, or unit. "Government entity" has the same meaning as defined in section 137-1. "Resort time share vacation interest", "resort time share vacation plan", "resort time share vacation unit", and "transient accommodations" have the same meanings as defined in section 237D-1." SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 4. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2040. |
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