HomeMy WebLinkAboutMIN PCPLUED 2026/09/01 (2024-2026) Policy Committee on Planning,
Land Use, and Economic Development
30th Session
Hawai`i County Building
25 Aupuni Street
Hilo,Hawai`i
September 1, 2026
CALL TO The regular meeting of the Policy Committee on Planning,Land Use, and
ORDER: Economic Development was called to order at 2:51 p.m.,in the Council
Chambers, Hilo,by Ms. Ashley L. Kierkiewicz, Chair.
ROLL CALL:
Present: Ms. Ashley L. Kierkiewicz, Chair
Ms. Michelle M. Galimba,Vice Chair
Mr. James E. Hustace, Member
Mr. Holeka Goro Inaba,Member
Ms. Jenn Kagiwada,Member
Mr. Matt Kaneali`i-Kleinfelder,Member
Ms. Heather L. Kimball,Member
Mr. Dennis "Fresh" Onishi,Member
Ms. Rebecca Villegas,Member
STATEMENTS The Chair directed the Committee to proceed to the next order of business,
FROM THE Statements from the Public on Agenda Items.
PUBLIC ON
AGENDA ITEMS: The following individuals registered to speak on Bill 147 (Comm. 806), and
came forward when called by the Chair:
John Pelletier: Comment.
Joy Dillon: In opposition.
Richard Henderson, II: Comment.
Mary Begier: In opposition.
(See Comm. 806.10)
Caitlin Miller: Comment.
Sherry Rockwood: Comment.
PCPLUED-30 September 1,2026
Madeline Ross: Comment.
Jesse Rubendalli: Comment.
Martina Wing: Comment.
Anna Ruth Peiffer: Comment.
John Moss: Comment.
Julie Eliason: Comment.
Linda Halbritter: In opposition.
Jamie Humphrey: In opposition.
CHR. KIERKIEWICZ: Thank you,we will move on to Business for the Day.
Mr. Clerk,Bill 147.
BILLS FOR The Chair directed the Committee to proceed to the next order of
ORDINANCES: business,Bills for Ordinances.
Bill 147: AMENDS CHAPTER 2 AND CHAPTER 25 OF THE HAWAI`I COUNTY
CODE 1983 (2016 EDITION,AS AMENDED),RELATING TO
TRANSIENT ACCOMMODATIONS
Establishes operational standards and use regulations for transient vacation
rentals,which include hosted bed and breakfasts (B&Bs) and un-hosted
short-term vacation rentals (STVRs); allows B&Bs as a permitted use in the
single-family residential zoning district; allows B&Bs as a permitted use in areas
within the residential agricultural, family agricultural, and agricultural zoning
districts that are also classified as State land use urban or rural; allows STVRs as
a permitted use in the entire multiple-family residential district and
in certain coastal areas adjacent to General Plan-designated Resort or Resort
Node areas in other residential zoning districts; allows STVRs as a permitted use
in the Downtown Hilo Commercial zoning district; and makes various
conforming housekeeping amendments.
Reference: Comm. 806
Intr.by: Council Member Kimball
Referred to Planning
Commissions: April 10, 2026
; and
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Comm. 806.2: From Managing Director William V. Brilhante,Jr., dated July 23, 2026,
transmitting for Council's consideration and action, a letter from the Windward
and Leeward Planning Commissions.
; and
Comm. 806.3: From Planning Director Jeffrey W. Darrow, dated July 28, 2026,
transmitting a PowerPoint presentation for Bill 147.
; and
Comm. 806.4: From Council Member Heather L Kimball, dated August 19, 2026,
transmitting a PowerPoint presentation for Bill 147.
CHR. KIERKIEWICZ: Council Member Kimball.
Motion to Approve: Ms. Kimball moved to recommend passage of Bill 147 on
first reading. Seconded by Ms. Kagiwada.
CHR. KIERKIEWICZ: Council Member Kimball.
MS. KIMBALL: Thank you, Chair. You guys were provided with the
slides from the Planning Department and from myself that were provided to
the Planning Commissions. I am not going to suggest that we go through all
of these today. You can peruse them on your own time. I also recommend
the webinar that we put up on Hawaiicountytar.com.
Just to start the discussion,the first thing I want to do is acknowledge that
we understand and appreciate that this is an emotional issue for some folks
because we're talking about livelihoods and being able to make ends meet
and all of that.
I think when we have these issues that evoke these emotional feelings,
sometimes misinformation can get out there and takes on a life of its own.
And I will say that I believe that has happened to a great extent in this case.
In my conversations with both of the Planning Commissions, one of the
commissioners actually brought up Bill 147 is essentially a housekeeping
bill, and that's what it is. It does not change any existing policies;it just
clarifies them.
So, for example,with respect to what is permitted on Agricultural land,that
is all dictated by Hawai`i Revised Statutes, Chapter 205-4.5; and the
definition of the farm dwelling. And that is the finding that came through
with the Rosehill decision.
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I will note that through Act 34 from 2026,the definition of farm dwelling
has changed a little bit,but I don't think it actually affects our understanding
and interpretation of a farm dwelling.
I do want to note that you were provided with this very cool graphic. This
was created by Maija Jackson at the Planning Department. This shows all
the different permutations of what can happen on agricultural lands.
The key difference is the understanding of what happens on a pre-1976
versus a post-1976 lot. Pre-1976 is before the current land use law took
effect in the State. And on State Land Use Ag,the first dwelling is a
single-family dwelling.
So, you don't have the same constrictions that you have on farm dwelling
for single-family dwellings in terms of having somebody there that is tied to
agriculture. That's why you have all of these different permutations. I'm
willing to go into that in more detail. So,that's one part of it, aligning with
the State Law with respect to farm dwellings on State Land Use Ag.
This also aligns us with the registration program, which TikTok today and
folks are currently using. But more importantly,this aligns the Code with
the historical practices of the Planning Department.
I'm going to ask Council Member Kierkiewicz to come way back with me
and remember when we started these initial conversations with the Planning
Department about Short Term Vacation Rental regulation.
We said, shouldn't all of these hosted be under the Bed&Breakfast
establishment means any single-family dwelling and/or guest houses which
have been permitted on a building site, in which overnight accommodations,
and only breakfast meals are provided to a maximum of ten guests for
compensation for periods of less than 30 days.
Going through this process and going back to that initial thing,basically, all
hosted rentals should have been regulated under this regulation of a Bed&
Breakfast; it's less than 30-day rentals. That should have been followed,
which requires in State Land Use, Urban and Rural,that homeowners get a
Use Permit in order to operate. And on State Land Use Ag,they get a
Special Use Permit.
So,what we do in Bill 147 since that has not been the way that the
department has enforced it up to date,is we actually removed the
requirement to get a Use Permit in State Land Use Rural and State Land Use
Urban.
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So,I want to be clear that this is a big change with Bill 147 is that we're
actually removing administrative requirements and burdens for hosted
rentals by saying that they no longer need a Use Permit in State Land Use
Rural and State Land Use Urban.
Now I know there's some conversation about the five-bedroom rule. That's
why I've asked our Building Division Chief to be here. The five bedrooms
has to do, first of all, with the Land Use Code. If you have more than five
rooms to rent,then you should be applying for a lodge, or an inn, or a hotel,
per our Code. And that has been the law all this time. That has not
changed.
There's also changes that happened with the Building Code with respect to
Fire prevention and other things when you to from five bedrooms to more
than five bedrooms for rent in terms of health and safety requirements. So,
questions regarding that can go to Mr. Spielman.
•
The other item that I wanted to just highlight is, you know,we're aligning
this also with the Tax Code. And that was brought up, obviously, as a
concern for folks. Again, commercial activity causes you to lose the
homeowner's tax class, which we talked about with Bill 173. And that has
been part of the law since the '80,right? And that is not something that
changes.
So,that's kind of the basics. I do have some amendments here that
incorporate the changes that were recommended by the Planning
Department per their background report for the Planning Commissions, as
well as some that are more policy-like in nature and that I pulled out to be
separate amendments for the body to consider. So, with that,I will ask
Director Darrow and the department if there's anything you want to add in
terms of this bill as far as introduction before I let my colleagues ask
questions. Thanks.
CHR. KIERKIEWICZ: The Chair recognizes Director Darrow.
(Note: At this time,Planning Director Jeffrey Darrow came forward to
address the members of the Committee.)
MR. DARROW: Thank you, Chair Kierkiewicz and members of the
Hawai`i County Council. Jeff Darrow with the Planning Department. This
has been a long road, and we're finally here. It's started back in 2018 with
the introduction of Bill 108 and the regulation of Unhosted Short-Term
Vacation Rentals (STVR). We've been operating for the past eight years
under that program, and it's been successful.
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At this point, it's just daily routine. At first, it was very, very contentious.
There was a lot of opposition.'But once the program launched,it relatively
went very smooth. During that particular process there was a fund that was
created. It was called the STVR Enforcement Fund. And that fund was
established to pretty much run the program; all of its needs; all of its
employees. That program is run through that fund.
It was intended back then to come back pretty quickly and regulate hosted
rentals. Unfortunately,that didn't happen quite as fast. In 2023, I believe,
Bill 121 came about,Bill 122, and also Bill 123 with Accessory Dwelling
Units. Bill 121 was proposing hosted rentals. Bill 122 was to try to remove
Bed&Breakfast from the Zoning Code and focus on hosted rentals. We
went through at least six drafts. Finally,it got shelved to work on it some
more because of all the testimonies. And now,we're here with
Bill 147. Again,taking all that into account and coming back to the Council
for this proposed bill.
•
As Council Member Kimball mentioned, this bill does a significant change
in the land use process for Bed &Breakfast or Hosted Rentals. Typically,
anybody operating a Bed &Breakfast or Hosted Rental in a Residential
Zone would require a Use Permit.
In the Agricultural Zoning and State Land Use Agricultural Zoning would
require a Special Permit. This allows them to continue as permitted to a
registration process without having to go through a Use Permit. It would
allow the operations on pre-'76 lots to be permitted within a Single-Family
dwelling. And on the post-'76, there's no way we can get pass that based on
State Law, and they would need to come in for a Special Permit.
We have worked diligently to make the registration process much simpler
than it could be. We've heard from people that it is a relatively simple
process. We have really refined our Special Permit process for Bed&
Breakfast anticipating the increase of Bed&Breakfast coming in that would
need a Special Permit.
As part of the amendments that Council Member Kimball is bringing forth,
there is a grace period to allow time for people to be able to go through that
process, and we will work with them. I'm here to answer any questions that
you may have. Thank you.
CHR. KIERKIEWICZ: Thank you,Director. Council Member Hustace.
MR. HUSTACE: Thanks Chair. Thanks Director. Thanks Council
Member. Before we dive into the amendments,just some questions here.
You know, Director, would it not be clearer to just have TVR (Transient
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Vacation Rentals) as the overarching sort of descriptor definition, and have
hosted-unhosted subsidiary; and based upon more duration versus kind of
like this class we're establishing?
Particularly, like we have some testimony about ones that are over the
30 days. But the regulation is also talking about this under 180 days. So,
there's this midterm rental period we're not really classifying or
considering,right? So, would it not make more sense or clearer to them to
establish it based upon the length and the duration of stay versus those
intricacies there.
MR. DARROW: Thank you for the question, Council Member Hustace.
The allowance or the introduction of what we call a mid-term rental, which
is this rental that has been operating beyond 30 days and less than 180 days,
is being introduced in one of the amendments. So,you'll see it there.
The reason why it's not as easy to deal with is because it's an unhosted •
rental. And so, we run into the same issue that it may be on a property that
is not allowed in a sense of a post-'76 lot were what we went through with
the Rosehill decision. It is allowed in pre-'76 in Residential Zonings but it
is prohibited on the post-'76 lots. So,therefore it's hard to lump it into one
particular basket. It pretty much needs to be dealt with separately. Correct
me if I'm wrong, Council Member Kimball.
MS. KIlVIBALL: Yes, that's correct. So, one of the amendments that I have
for you today addresses that, which is the 31 to 179 days that's coming
through. I don't want to get out of order here. We can have conversations
about terminology.
MR. HUSTACE: I'm just trying to with the testimonies we received and
the conversations,it just would make clearer sense to have TVRs the
umbrella name. And you have Short-Term Rental,whether hosted or
unhosted; and then B&B,just the subsidiary of the hosted one. A more
specialized terminology of the Short-Term Hosted TVRs.
MR. DARROW: I hear you.
MR. HUSTACE: Okay,thank you.
MR. DARROW: As I mentioned, when we had gone through Bill 121,it
was for Hosted rentals. And we were trying to remove Bed&Breakfast.
MR. HUSTACE: That's causing quite a stir with the whole B&B,because
it's already established B&B. So,trying to find some sort of work around
that. They are already established and recognized as a Hosted Short-Term
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TVR,rather than trying to lump everything into B&B. It seems to be some
of the crocks and some issue for sure. I'm going to pivot just for a second,
if I can have our Building Chief come up. I just want to kind of dive into
that. And Director, you might want to stay up as well.
You know, Council Member Kimball talked about the Lodge piece. Why
haven't some people transitioned into that Lodge piece or at least known it
and said, okay, we have multiple bedrooms beyond this number. Why
haven't they been informed to move in that direction
MR. DARROW: Sure, as mentioned,the definition in the Zoning Code of a
hotel,inn, motel,lodge is a building or group of buildings with six or more
rooms. So, that's why B&Bs are limited up to five. And they're typically
situated within a single-family dwelling.
Once we had applicants come in and have applied for a B&B, and they've
done successful, they've come back in and they've requested to change their
B&B to a lodge. So,they've come in; they receive approval from the
Planning Commission, and they increase the amount of rooms that they
have.
MR. HUSTACE: Okay, thanks Director. Building Chief Spielman, if you
just kind of speak a little bit broadly about some of those additional layers
and requirements for a lodge situation and what you see on the Building
Code side.
(Note: At this time,Building Chief Aaron Spielman came forward to
address the members of the Committee.)
MR. SPIELMAN: Sure. I guess the nuance is the Planning Department
uses the Zoning Code Chapter 25,which has different definitions than the
Building Division which uses Chapter 5 and its subchapters.
So, our definitions in the Building Code do not include B&B. They do
include lodging house. So as it stands, over five bedrooms,Lodging House
would be the structure. Like this is a commercial building, you would have
a lodging house. A lodging house would have certain Code requirements,
because effectively, you're increasing the risks. The owner's increasing the
risks to the people renting the rooms, who may not be familiar with the
location like you and I might be at our own homes. So, that's why there's
risks. A lodging house—I'm sorry, I do have a brief and I can share more
detail on this with you later. But that's basically it, there's more
requirements including what could be a requirements for fires, egress,
everything else.
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MR. HUSTACE: Absolutely. Thank you, Chief, appreciate that. Director
Darrow,kind of going to the Ag side of things and the multi-dwelling
properties that's kind of come up here and there. How do we read it? Right
now, it's one TVR per building site limitation, is that correct?
MR. DARROW: It's one TVR,but if you recall, that when the Accessory
Dwelling Unit (ADU) Code came out,that section specifically said that if
there was an ADU on the property,it would only allow one TVR, one
building. But you could have a TVR with say,you could have two
structures; you could have two bedrooms in one and three in the other.
One of the testifiers had said that they wish that it was allowed on the TMK
(Tax Map Key), and that's the definition. It's allowed on the building site.
In not in that particular dwelling. You could live in this dwelling and
operate in that dwelling, depending on the circumstances.
MR. HUSTACE: Do you have a broad sense of how many of our either
hosted Ag or Farm stays could be impacted by these sorts of changes?
MR. DARROW: The hope is that we have been hearing from the Hunden
Study; from hearing from a Rentalscape platform that has been hired to help
us, we see quite a number of unlicensed activity that's happening around the
island. And our goal is to try to bring them to a place that they are operating
legally.
I've heard many times in the testimony; we're operated legally all this time.
They may be legal in the sense that they paid their taxes. But there's a good
chance that they probably needed a Land Use Permit, whether it's a Use
Permit or a Special Permit to be able to operate.
MR. HUSTACE: Okay. Shifting to the fines,because in the testimonies.
You know,people are confusing fees and fines. There's no fee schedule in
this bill, correct?
MR. DARROW: The fee schedule is within Chapter 6.
MR. HUSTACE: Right. So,but not in Bill 147. There's no fee schedule in
Bill 147.
MR. DARROW: Correct.
MR. HUSTACE: There's a fine schedule, though.
MR. DARROW: Correct.
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MR. HUSTACE: The fine schedule we have; penalty levels, $55, $75,
$100, $10,000. What are those basis for some of those penalty fines?
MR. DARROW: It was taken in relationship to the other counties and how
they operate. We basically, originally,through Bill 108 try to propose
higher fines that were shut down. So,basically, we relied on our typical
fines which is $100, it's very minimal. And so, we looked at the other
counties through Bill 121, and these were the same numbers that we came
up through that process.
MR. HUSTACE: The one concern I have about the fine section area, and
the enforcement, the prima facia,there really isn't a place for rebuttal or
opportunity for individuals to contest the situation. So,I think that's
missing in that piece there. If I'm not reading it correctly there,please let
me know.
•
But in terms of just basically putting that burden solely on the homeowner,
when we haven't really done our due diligence about using the registration
process. And using the Fire Department to actually vet that that violation
did occur and happen.
So, I think there might be something missing in there in terms of just
dumping it all on the homeowner that they're at fault. They'll aways be at
fault and we're not really going to vet what happened there. So,there might
be something missing in that burden of proof.
MR. DARROW: So, whenever the Planning Director issues a decision, it's
a determination.
MR. HUSTACE: You're going to go to the Board of Appeals too.
MR. DARROW: Correct. So, if a notice of violation was issued,it would
provide all the information they need to appeal that particular decision.
MR. HUSTACE. Maybe that just needs to be clear in here. I'm not sure, or
maybe that's unnecessary. Okay, that's fair. Okay, I'll leave it there for
now, Chair. Thank you.
CHR. KIERKIEWICZ: Thank you. Anyone else, on this main motion
before we dive into amendments on Bill 147? Are we diving? Deep breath
let's dive. Council Member Villegas.
MS. VILLEGAS: Just a quick question. You know,I have deep respect for
John Pelletier and Nancy Pisicchio and our Action Committee in Kona.
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And they had a number of amendments that they talked about continuously.
And I will humbly admit all the acronyms and perpetual complexities with
all of these makes me miss when it was hosted and unhosted.
I also liked actually, Council Member Hustace's concept of B&B still
existing but going under the hosted part. Because I've stayed in B&Bs, and
getting is breakfast is very different. And interacting in a hosted property,
they are a different experience. And I have some concerns about
eliminating that as an option.
Sorry, going back to my question for you, Council Member Kimball,is, as
we dig into the amendments here, have you addressed the recommendations
from the Action Committee when it comes to Multi-Family Residential and
I believe it was Commercial.
MS. KIMBALL: Yes, those will be coming as additional amendments. I
pulled them out separately because they do represent a policy change. And
so, I felt that they should be deliberated separately. But they are here.
MS. VILLEGAS: Okay, I wanted to check on that. Thanks for your
guidance going through, I'd say a lot since eight years ago and clear as mud.
So, with that I yield at this time.
CHR. KIERKIEWICZ: Thank you, Council Member. Vice Chair Onishi.
MR. ONISHI: Thank you,Madame Chair. Question to the Director. So,
you mentioned earlier that there were previous bills. Then they went to like
Drafts 5 or 6, then listening to all the testimonies, and then it kind of
stopped,right? Now, this comes back and we're still having all these
testimonies.
So,why? If you folks listened to all the testimonies in the past, when this
comes up now,it should be understandable that everybody's on the same
page. But it seems it's not. So, maybe you can help explain, I guess to the
public, what's going on or what happened. Because I'm getting confused.
MR. DARROW: So, as mentioned,the path that we were going down
before was to simply call hosted, Hosted; unhosted,Unhosted or STVRs.
B&Bs were going to be eliminated because it seemed that the Hosted met
that criteria of a B&B. Whether you wanted them to serve breakfast or not,
it was up to you. You still could as a hosted rental. And we tried to make
that clear.
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But people were very attached to the term,Bed&Breakfast. That was just
one thing. There were other things,that you know, have been adjusted from
that time to this bill.
Again, Council Member Kimball is the one that did a majority of the work.
We assisted,but I would say,that her and Council Member Kierkiewicz did
a tremendous amount of work on doing Bill 121, 122, and 123. There seems
to be lot less opposition this time than there was back then.
MR. ONISHI: But then there is still some concern that I think it could be
tweaked on Bill 147.
MR. DARROW: This is Draft 1, I'm sure.
MR. ONISHI: But I don't want to go through five drafts again. Let's get
this bill done.
MR. DARROW: I completely agree. You know, the one thing that is hard
is people have been doing this for a long time, and we operate mainly on
complaints. When people operate normally, and may not make a fuss, we
don't get a complaint. So, we don't know they're out there operating. And
we don't want to be proactive where we're going out and trying to find
everybody.
MR. ONISHI: But don't you have this company that does all the research
now?
MR. DARROW: Right. But the goal is again, when it comes to
enforcement, if the Council feels like these fines are too high,let's bring
them down, not a problem. Our goal isn't enforcement; our goal is to help
people.
MR. ONISHI: Another thing too, you don't have enforcement personnel
now on the East side.
MR. DARROW: Well, we're working on it.
MR. ONISHI: But not yet.
MR. DARROW: But what our goal is,is to help them get registered and get
into the process. That's what our goal is; to make sure they are legal.
MR. ONISHI: Okay, and that's what we passed last year.
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MR. DARROW: Chapter 6, correct? And that has launched.
MR. ONISHI: So, now, how has that been coming along?
MR. DARROW: It just started today. So, it's coming along. I've been here
so,I can't answer.
MR. ONISHI: Okay, somebody brought that up. So now, that comes up,
the registration. That's now required,right? And prior to that they could
just come in voluntarily to go and register, right?
MR. DARROW: No, they couldn't register. I mean they could for a STVR,
because we have a registration process. So, if you came in for a B&B, you
would need to go through a Special Permit.
So,before this launched, we got inundated with a whole bunch of
applications trying to meet this. And we're thinking it's easier to go this
way than it is to go that way.
MR. ONISHI: So, then, I guess,people are not totally paying attention to
all of these meetings that's happening with the Council,right? And all these
different drafts and they get confused. That's why I think at one of the
meetings,Ms. Kierkiewicz mentioned about, I guess reaching out to the
public. You mentioned a webinar.
MR. DARROW: We did a webinar, and it was very successful. We had a
lot of great questions, a lot of input. Lot of people responsive to the
webinar. It's on our website now, so,people can still access it.
MR. ONISHI: Then I think she also mentioned how you folks were
reaching out to all those out there.
MR. DARROW: So, we have it on our website.
MR. ONISHI: I understand but not everyone might be reaching this; the
newspapers might not be publishing everything, so,how will they know?
MR. DARROW: So, to take the next step, we're asked the Administration
if they could do a public media announcement, as well as put it on Social
Media. So that it can get out more than it is just on the websites.
MR. ONISHI: Okay. Then, the last thing I have is, have you folks looked
at, as it was mentioned,if someone has a loan on the property,right and it
could convert to Commercial, or something could trigger their loan. Have
you looked into that? I see Division Chief saying, "Yeah,"right?
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MR. DARROW: I'm not familiar with that,maybe Council Member
Kimball.
MR. ONISHI: So, for my question, Chief?
MR. SPIELMAN: I was just nodding that I understand what you were
getting at. I did hear the testimonies as well. I'm not an expert in that field.
MR. ONISHI: Okay. But wouldn't the department be also looking at that?
Like, I guess, what would trigger the property owner in case this kinds of
legislation would come into play.
MR. DARROW: So, typically,B&Bs have been around for decades,right?
This hasn't been an issue up to now. We haven't heard about it being an
issue. If it is an issue,then something's changed that we're not aware of. It
could be that they're talking about taxes,but I'm not sure because taxes are
definitely affected when you start doing rentals. •
MR. ONISHI: We had that when Administrator Miura mentioned to us
about the taxes on B&B. Because the homeowner gets the exemption or
something,but they get the Residential rates because of the business.
That's why I think one testifier was also making a complaint about why. I
guess certain businesses were not being taxed like the others. But I think
across the board, everybody's the same.
MR. DARROW: Again,I couldn't answer. I just know that in our
definition of a Bed&Breakfast, it's incidental and subordinate to the
Single-Family dwelling to the dwelling itself.
MR. ONISHI: Okay. But I think it would be good to get an idea of how
much of an impact it would burden that person.
MR. DARROW: Well,just real quickly,is that how they're doing it now?
So, if they're doing it now; if they're renting it out now?
MR. ONISHI: As a B&B?
MR. DARROW: As whatever they're doing. I don't know how they're
renting it,but it sounds like they're not regulated. And they get regulated
and something happens? It should have happened,because they're doing
the same exact thing that they're doing when they come in and get this.
There's no difference.
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MR. ONISHI: That's why they push for the registration part,right? Okay,
I'll yield. Thank you, Chair.
CHR. KIERKIEWICZ: You're welcome. Council Member Kaneali`i-
Kleinfelder.
MR. KANEALI`I-KLEINFELDER: In true Heather fashion, we have
brought in a very complex bill that people have their concerns about. But
again, I have four amendments in front of me that play with each other.
What I'm going to ask is,before you dive into amendments,because the
amendments are amending Bill 147,maybe you walk us through all of these..
Because some play with each other, and some override each other.
I can see there's a structure to that,but I'm wanting to understand the
structure of what you're about to walk in with the four amendments,before
we say, yes to one. And then realize that the next one is coupled with it, or
not with it, or undoing something that we just did. Because it gets
complexed really fast, and I know you know this inside and out. But the
public and maybe some of us don't. I'm going to claim that I'm one of
those people who's just trying to follow this. But I want to make good
decisions at the end of the day.
MS. KIMBALL: Chair,if I may?
CHR. KIERKIEWICZ: Yes, go ahead.
MS. KIMBALL: So, the first amendment in the set of amendments is
largely clerical in nature. It's adopting some of the amendments proposed
by the Planning Department, as part of their background report. And so, it's
not substantive in nature. It doesn't change policy. It's really clarification,
editorial, and adding some grace periods.
The following three amendments all deal with permitted areas, and where
STVRs are permitted. And they do overlay on each other,but they're
independent from the standpoint if they change things in different zoning
districts or during different durations. Because they each represent a policy
shift that is different than something we're doing already. I wanted to
separate them as independent things.
So, you have one that deals with mid-term rentals,which is the 31 to 179;
one that deals with Neighborhood Commercial or CN; and then you have
one that deals with RM (Residential Multi-Family). And those all overlap
because they address the same section. But that will be solved.
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They're written as if none of them overlap,but they will overlap when LRB
(Legislative Research Branch) gets a hold of them after we decide which
ones we're going to approve and which ones we're not.
CHR. KIERKIEWICZ: Clear as mud. Council Member Kaneali`i-
Kleinfelder.
MR. KANEALI`I-KLEINFELDER: It is and it isn't. I see some—like if I
just took one of them to address Section 7 (c);but one touches on the
pre-1976 Rule.
On the main motion, here's my concerns, and I've been thinking about this
as a whole, I think about some of the areas in Puna where we're seeing
increased building mainly having multiple homes on one lot,pre-'76. And
I'm thinking about density. ADUs and pre-'76 build-outs allow for density
that I don't think the County is ready for. That's it, if I had to summarize as
my thoughts for the last month.
When we start to allow accessory dwelling units to a maximum of four in
Urban areas, and we start to allow almost all of Puna and even part of Ka`u
and huge subdivisions to have up to two units; some which can be vacation
rentals, I don't think the County is ready for that density build-out when it
comes to roads, water, and sewer; and even HELCO (Hawai`i Electric Light
Company) and Hawaiian Telcom.
So,I understand we're walking through this, and it's a housekeeping bill.
But the result of this is an amazing amount of density increase that some
folks are going to love, and some folks are going to hate. I see both. I see
the perks,but I also see the cons.
Just sitting in this seat for eight years and listening to a complaint about our
wastewater system failing; the state of our roads in and out of our different
areas. When we allow density like this, and we're not putting money into
infrastructure, then we're creating a problem. And that's the long and short
of it for me.
So,interesting to see where we go with the bill today. But I mean, I'm not
even looking for a comment. If you want to say comments, you can,but
that's my thoughts.
MR. DARROW: If I could,just briefly. So, what we're trying to do is,
each one of these that are existing and operating need a permit,right?
We're trying to make it so that they can come in without needing a permit.
Some, there's no way we can get out of it. They're just in an area where we
just can't get pass State law in that particular aspect of it.
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MR. KANEALI`I-KLEINFELDER: That's not a small statement, that's a
big statement if you understand how many of those there are.
MR. DARROW: It is,but all of them would be coming in for permits.
That's quite big as well. So, we're trying to make it so they can come in and
register through this process; not have to go through a Land Use Permit that
they've got to go through the Planning Commissions to get an approval.
That's our main goal.
So, that's the main thrust of this bill. It's to work in coordination with
Chapter 6, which is already requiring people to come in and register. If they
come now and register without us amending this,every single one of them
are going to trigger some sort of Land Use Permit. So, that's going to be a
huge burden on them, as well as the Planning Department.
MR. KANEALI`I-KLEINFELDER: Okay, thank you. I yield, Chair.
CHR. KIERKIEWICZ: Thank you. I'm looking at the hour,it's 4:15 p.m.
We've been here since 9:00 a.m. discussing a variety of issues. And it takes
a lot of brain power and energy to be engaged and have robust discussion.
This is a very complicated issue. There are a lot of impacts on community
with whatever kinds of decisions are made on this bill.
I would like to propose postponing. I know it's not a popular idea, and that
you really wanted to just kind of dive through all of this today, Council
Member. But I would like to propose fresh minds tackling this at the next
Committee meeting;preferably in the morning, not in the afternoon. I'm
trying to read the room right now, and I think folks would just like a little bit
of a brain break to digest all of the information that's been shared today; to
hear how the registration process is going; to dive into each of these
amendments; engage in their constituents a bit further. So, I'm going to
suggest postponing this measure, so that we can have robust discussion at
our next Committee hearing.
MS. KIMBALL: I would prefer to move forward,but I appreciate the
recommendation. And so, we'll go with what the body decides. Obviously,
I don't have a choice. We'll go with what the body decides. Happy to make
the motion to postpone. I did want to address a couple of comments.
First, with respect to your comments, Council Member Kaneali`i-Kleinfelder,
there's nothing about this bill that increases density in anyway. Bill 123 made
it clear that if you had an ADU, you could only do one STVR on the property
regardless of whether it's an ADU or in the main house. You can only do one.
So,that doesn't come into play here.
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The other thing, with respect to pre and post-1976,in pre-1976, the first
dwelling is a single-family dwelling. It can be used as a Hosted Rental. The
second dwelling on a post-1976 lot is now a first Farm Dwelling. And so,it
has all the restrictions per HRS 205-415 in terms of what a Farm Dwelling
does and I'll hand you this sheet of paper that shows the limitations on that.
So, that's one thing I wanted to make a comment on.
The second thing that I wanted to just comment on is the terminology. Like in
Chapter 6, TVR is the main umbrella; you have hosted and you have
unhosted. In Chapter 25, we have STVR and Bed &Breakfast. That's the
terminology that's been in there forever. I really don't care what we call
these, I really don't. But I want you to just think about is they're just terms;
they're just terms of art to describe these things.
With respect to the Bed&Breakfast,like I don't think there's anybody that
goes to Airbnb, and says, "Oops, I wonder if they got their permit for the Bed
&Breakfast? I prefer to go to a place that has that permit." That doesn't
happen, right? This is just how we define it within the Code. So,if you folks
want me to change the names,I'll change the names. But I wouldn't make a
decision for this bill on that alone.
So, you know, finally, I will say that it's a heavy lift. We've been working on
it for years. We have seen a considerable amount of folks reaching out,
watching the videos; asking questions that we've been able to respond to. So;
if you folks have constituents that still have concerns, hawaiicountytar.com is
the website.
We have the bill. We have all the amendments. We have a description of
what it does. We have the webinar; we have frequently asked questions.
There is a ton of information out there. You don't need to answer it
yourselves,just direct people to that website. It's all there and easily
accessible. And I will say that we have been partnering with Airbnb,Expedia,
and some of our partners to make sure that they let all their hosts know that
this is happening and when those webinars are.
So, there has been a significant amount of communication to make sure is
aware of what's going on. With that in mind,I guess the motion forward is to
postpone.
Motion to Postpone: Ms. Kimball moved to postpone Bill 147 to September 15, 2026.
Seconded by Mr. Inaba.
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CHR. KIERKIEWICZ: Any discussion? Seeing none, all those in favor,please
say, "aye." Any opposed?
Vote on Motion The vote to postpone Bill 147 to September 15, 2026,
to Postpone: was carried by the following voice vote.
(Approved)
Ayes: Committee Members Galimba,Hustace, Inaba,
Kagiwada, Kaneali`i-Kleinfelder, Kimball,
Onishi,Villegas, and Chair Kierkiewicz—9.
Noes: None.
Absent: None.
Excused: None.
CHR. KIERKIEWICZ: Motion carries. Bill 147 is postponed. We are at the
end of our agenda. Meeting is adjourned at 4:19 p.m. Thank you.
ADJOURN- There being no further business Chair Kierkiewicz adjourned the meeting
MENT: at 4:19 p.m.
Approved:
Ms. Ashley L. Kierkiewicz, Chair (Date)
Policy Committee on Planning,
Land Use, and Economic Development
AK/dt
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