(a) The Department of Revenue and Taxation shall monitor, control, and regulate the process of investigating and collecting fees from any facility verbally expressing or advertising the lease or the use of property as a lodging facility accommodating transient visitors that is being operated without the proper licenses.

(b) The owner(s) of a property verbally expressing or advertising the lease or the use of their property as a lodging facility and marketed or advertised for transient guests without proper licenses shall:

(1) be punishable, upon determination by the Director or his duly authorized designee of the Department of Revenue and Taxation, by a fine of Five Thousand Dollars ($5,000).

(A) The owner(s) shall be issued a notice to cease operations by the Department of Revenue and Taxation within twenty-four (24) hours of conviction.

(B) The owner(s) may resume operations once all licenses have been acquired and can be provided upon request; and

(2) (A) any owner(s) of a property issued a second (2nd) notice to cease operations by the Director or his duly authorized designee of the Department of Revenue and Taxation within one (1) year of the first (1st) notice shall be punishable, upon determination by the Director or his duly authorized designee of the Department of Revenue and Taxation, by a fine of Ten Thousand Dollars

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($10,000) for every day they are found to have remained in operation.

(B) The owner(s) of the property shall not be able to apply for any license to conduct business on Guam for a term of one (1) year.

(c) Any property being managed and used as a lodging facility, whether verbally expressed or advertised and marketed toward transient guests by a short term vacation unit emergency contact, on-site manager, or similar lodging facility operator(s), other than the owner(s) of the property, and operates without the proper licenses shall:

(1) (A) be punishable, upon determination by the Director or his duly authorized designee of the Department of Revenue and Taxation, by a fine of Five Thousand Dollars ($5,000) and be issued a notice to cease operations within twenty-four (24) hours of conviction and until all licenses have been acquired and can be provided upon request.

(B) The owner(s) of the property shall be provided with a “”Notice of Illegal Operation”” on their property within twenty-four (24) hours of the lodging facility operator(s) notice to cease operations; and

(2) (A) after a second (2nd) notice to cease operations has been given to the lodging facility operator(s) by the Director or his duly authorized designee of the Department of Revenue and Taxation within one (1) year of the first (1st) notice, the lodging facility operator(s) shall be punishable, upon determination by the Director or his duly authorized designee of the Department of Revenue and Taxation, by a fine of Ten Thousand Dollars ($10,000) for every day they are found to have remained in operation.

(B) The lodging facility operator(s) of the business shall not be able to apply for any license to conduct business on Guam for a term of one (1) year.

(C) The owner(s) of the property shall be given a second (2nd) notice of illegal operation on their property and shall be punishable, upon determination by the Director or his duly authorized designee of the Department of Revenue and Taxation,

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by a fine of Five Thousand Dollars ($5,000) for every day the lodging facility operator(s) has been found to have remained in operation on the property.

SOURCE: Added by P.L. 33-165:9 (June 30, 2016).

2016 NOTE: Subitem designations were added to adhere to the Compiler’s general codification and alpha-numeric schemes pursuant to 1 Guam Code Ann. § 1606.

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