HAR §18-237-200-02. Third Party Rent Collectors

(a) Third party rent collectors shall file all documents and statements required under section 237- 30.5(c), HRS, with the first taxation district office. (b) All documents and statements required to be filed by third party rent collectors under section 237-30.5(c), HRS, shall be submitted with forms and in the manner prescribed by the department. (c) Third party rent collectors who do not file a copy of the first page of a rent collection agreement within thirty days after entering the agreement shall file a copy of federal Internal Revenue form 1099 with any other documents and statements required under section 237-30.5(c), HRS, at the same time form 1099 is required to be filed with the Internal Revenue Service. (d) For any rental collection agreements entered into before December 31, 2024, any documents and statements required under section 237-30.5(c), HRS, shall be filed by March 31, 2025." [Eff ] (Auth: HRS §231-10.7) (Imp: HRS §237-30.5) 3. Chapter 18-237, Hawaii Administrative Rules, is amended by adding a new section 18-237-200-03 to read as follows: "§18-237-200-03 Citation for failure to file third party rent collector information; requirements. (a) A citation for failure to file third party rent collector information shall be issued on the forms prescribed by the department. (b) A citation for failure to file third party rent collector information shall include the following in its contents: (1) The name and address of the respondent; (2) The specific alleged violation or violations of title 14, HRS, or the administrative rules adopted thereunder which constitute cause for the issuance of the citation for failure to file third party rent collector information; (3) If the citation is issued pursuant to section 237-30.5(e), HRS, the citation shall describe to the best of the department's ability the real property for which the third party rent collector is authorized to collect rent, including the address if possible; (4) A signature of the special enforcement section employee or other department employee authorized to issue the citation. By signing the citation for failure to file third party rent collector information, the issuer certifies that the statements contained in the citation are true and correct, to the best of their knowledge. A citation that has not been signed by a duly authorized employee of the department shall be void ab initio; (5) The amount of the monetary fine imposed against the respondent; (6) A space for the respondent, or the respondent's agent or representative, to acknowledge receipt of the citation by signature. If the respondent or respondent's agent or representative refuses to sign or if for some other reason the department employee is unable to acquire a signature to acknowledge receipt, the citation may indicate "refused to sign", "unavailable", "no signature for safety reasons", "service by mail", "service by publication", or other language explaining the lack of signature by the respondent or the respondent's agent or representative. The lack of the signature of the respondent or the respondent's agent or representative shall not affect the validity of the citation; and (7) Information regarding the respondent's appeal rights, including the requirement that the citation must be returned to the department within thirty days from the date the citation was served, respondent's right to a hearing before the director or the director's designee, and contact information for where the respondent may obtain further information." [Eff ] (Auth: HRS §231-10.7) (Imp: HRS §237-30.5) 4. Chapter 18-237, Hawaii Administrative Rules, is amended by adding a new section 18-237-200-04 to read as follows: "§18-237-200-04 Issuance of a citation for failure to file third party rent collector information. (a) A citation for failure to file third party rent collector information is both a notice of violation and an offer to settle an administrative case involving any violation related to the citation, and may include a monetary fine where permitted under the applicable law and rules. (b) Any employee of the department who is assigned to the special enforcement section or otherwise duly authorized by the department may issue a citation for failure to file third party rent collector information to a person if there is reason to believe the person has violated or is violating section 237- 30.5, HRS, or any administrative rules adopted thereunder. (c) A citation for failure to file third party rent collector information may be served by: (1) Personal service on the respondent, respondent's officer or director, or respondent's registered agent for service of process as shown in the records of the department of commerce and consumer affairs; (2) Mail sent to the respondent's last known business or residence address or the address of respondent's registered agent for service as shown in the records of the department of commerce and consumer affairs; or (3) Publication at least once in each of two successive weeks in a newspaper of general circulation if service by mail is not made because the department has been unable to ascertain the address necessary for service under paragraph (2) after reasonable and diligent inquiry. Publication shall consist solely of the respondent's name and a statement that the respondent is being served a citation for failure to file third party rent collector information under section 237- 30.5, HRS, by the publication and has thirty days from the date of service to respond. No return information or other personal or confidential information shall be disclosed in the publication. (d) If the citation is served by publication under subsection (c)(3), the date of service of the citation is the last date of publication in the second successive week." [Eff ] (Auth: HRS §231-10.7) (Imp: HRS §237-30.5) 5. Chapter 18-237, Hawaii Administrative Rules, is amended by adding a new section 18-237-200-05 to read as follows: "§18-237-200-05 Response to citation for failure to file third party rent collector information. (a) A respondent must respond to a citation for failure to file third party rent collector information within thirty days from the date of service by: (1) Paying to the department the stated amount of the monetary fine, which shall constitute acknowledgment of the violation and a waiver of further rights of review; provided that if the tendered payment is dishonored for any reason not the fault of the department, the respondent will be deemed not to have answered the citation; or (2) Appealing the citation by making a written request to the department for a contested case hearing in accordance with these rules and chapter 91, HRS, including but not limited to section 18-237-200-08. Written requests for contested case hearings may be indicated on the citation itself. (b) If the respondent fails to respond to the citation for failure to file third party rent collector information within thirty days from the date the citation was served: (1) The failure is an acknowledgment that the allegations contained in the citation are true and that the relief sought in the citation, including any monetary fines, is appropriate; and (2) The department may collect any overdue monetary fines and enforce any overdue non- monetary sanctions as set forth in section 18-237-200-25. (c) The hearing of an agency appeal shall be limited solely to the allegations contained in the citation. No other matter may be considered, including, but not limited to, any disputes relating to any tax liability." [Eff ] (Auth: HRS §231-10.7) (Imp: HRS §237-30.5) 6. Chapter 18-237, Hawaii Administrative Rules, is amended by adding a new section 18-237-200-06 to read as follows: "