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HomeMy WebLinkAboutMIN PCPLUED 2026/09/15 (2024-2026) DRAFT Policy Committee on Planning, Land Use, and Economic Development 31't Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii September 15, 2026 CALL TO The regular meeting of the Policy Committee on';Planning, Land Use, and ORDER: Economic Development was called to order at 9:00 a.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 (via videoconference from Kona) Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Mr. Matt Kaneali`i-Kleinfeldr,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, and came forward when called by the Chair: Robert Golden: Comment. Dell Otsuka: Comment. Sara Layne Pedro: Comment. (representing West Hawaii Association of Realtors) Lance Owens: In opposition. Sherry Rockwood: Comment. PCPLUED-31 September 15,2026 Martina Wing: Comment. Nancy Pisicchio: Comment. John Pelletier: Comment. Caitlin Miller: Comment. Heather Korotie: Comment. CHR. KIERKIEWICZ: Thank you. Mr. Clerk, if we could please proceed with Bills for Ordinances. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: 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' gricultural, 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 Postponed: September 1, 2026 (Note: There is a motion by Council Member Kimball, seconded by Council Member Kagiwada, to recommend passage of Bill 147 on first reading.) ; and Comm. 806.4: From Council Member Heather L Kimball, dated August 19, 2026, transmitting a PowerPoint presentation for Bill 147. Page 2 PCPLUED-31 September 15,2026 and Comm. 806.5: From Council Member Heather L Kimball, dated August 27, 2026, transmitting proposed amendments to Bill 147. ; and Comm. 806.6: From Council Member Heather L Kimball, dated August 27, 2026, transmitting proposed amendments to Bill 147. and Comm. 806.7: From Council Member Heather L Kimball, dated August 27, 2026, transmitting proposed amendments to Bill 147. and Comm. 806.8: From Council Member Heather L Kimball, dated August 27, 2026, transmitting proposed amendments to Bill 147. and Comm. 806.9: From Council Member Heather L Kimball, dated September 1, 2026, transmitting a document entitled "B&B Hosting Scenarios in SLU Agricultural District." CHR. KIERKIEWICZ: Thank you, Mr. Clerk. Council Member Kimball. MS. KIMBALL: Thank you., I just wanted to start by saying thank you to all the folks that came in and provided testimony or submitted testimony online. Some of these folks I've been working with a long time and had several conversations. Heather (Korotie) in particular. We've been talking for years on this,;as well as the folks from the Transient Accommodations organizations. I just,also wanted to mahalo the Planning Department. You know, this has been a real partnership between my office and all of the folks over in Planning tea try and come up with something that is workable. And then, of course, L (Legislative Research Branch). This has been a heavy lift from the drafting standpoint, and really appreciated all of their efforts to help get us to something that is both comprehensive, accurate; meets the needs of both the department and the community. I,don't want to go too much into the details. I know we talked about it a little bit last time. Hopefully, everybody's a little more fresh this morning. But I did want to just really state clearly what happens if Bill 147 passes and what happens if it doesn't. Page 3 PCPLUED-31 September 15,2026 So, if Bill 147 passes, what it will mean is that folks that have a hosted rental in either State Land Use Urban or Rural, they will not be required any longer to get a Use Permit to do that hosted rental operation. If they're in State Land Use Ag, and they are a pre-1976 lot, and they just have that one dwelling, they will also not be required to get a Use Permit for a hosted rental. If we do not pass Bill 147, that doesn't affect the registration process. That is ongoing right now. But what it will mean is thateverybody that is both operating a hosted rental will have to come in for a Use,Permit if they don't already have a Bed & Breakfast(B&B) Use Permit. This would be logistically very difficult for the Planning Department to manage. And then, furthermore, an additional layer of bureaucracy for those homeowners that are operating these vacation rentals. From the very beginning, the efforts around,thisprocess were to clarify the language around vacation rentals; create a registration process. But there's always been this sort of recognition that an STVP (Short-Term Vacation Rental) where there's no one onsite is very differentfrom a hosted rental. Bill 147 basically aligns past practices of the department with the Code and aligns us with other decisions,like the Rosehill decision with regard to State Land Use Ag, I'll leave it there for now. I'm happy to take and clarify questions from the rest of the body. I would like to discuss the amendments today,., But I did'want to invite Director Darrow up to just say a few words about their perspective on Bill 147 from the Planning Department. Thank you. (Note: 'Atthis time, Planning Director Jeffrey Darrow came forward to address the members of the Committee.) MR. DARROW: Good morning, Chair Kierkiewicz, Vice Chair, and members of the Hawaii County Council. Jeff Darrow with the Planning Department. Not much more I can add. This has been quite a heavy lift over the past couple years with everybody's assistance. We're finally at that point again where we can try to complete this process and move on with our actual registrations and Land Use Permits. I believe the most important thing that was said already is that, by passing this bill, it will help many people not need to go through an additional process. Each person that's operating a hosted rental in the Residential Zoning district would require a Use Permit at this time under our current bill. Page 4 PCPLUED-31 September 15,2026 I'm sure that if we look at it, that would be, I would say, thousands, and that would help them, but it would also assist the Planning Department in not needing to go through an additional Land Use Permit process for each of these. We tried to simplify this process from a Land Use standpoint as much as we possibly could. As mentioned previously, there are certain areas. We just have no ability to be able to permit that particular B&B or hosted rental within the Agricultural Zoning State Land Use, which requires a Special Permit. So, part of this bill extends a grace period for them to take their time to come in, and we will work with them through this process. We've already begun working with quite a number of them. I think I've heard as much as 30 have come in at this point. Some try to come in before September l". Some didn't make it, and we're working with some after September 15t. And we've even worked on making that process easier for applicants to be able to come and go online and be able to apply for this particular Special Permit application. We're not being overly restrictive on site plans and floor plans; and,information that we need for a simple B&B. Hopefully, we'll get through this but I'm here if you have any questions. Thank you. CHR: KIERKIEWICZ: Thank you. Before we get to the amendments, I did want to offer members the opportunity to ask questions of the maker of the bill as well as the Planning Director. Any questions here in Hilo? Council Member Kagiada. MS.,KAGIWADA: Thank you. Just a couple. One is just speaking to the testifiers aboutthe issue around insurance and designating properties, B&Bs. If you could speak to that a little bit. If you've looked into it and clarify for the public, that would be great; and for us. Then, I guess my other question is and continues to be, what is the reason we don't seem to be distinguishing between properties that are owner- occupied as their primary residence and hosted rentals that they just hire somebody in a standalone property to host. To me, those are still very different. And so, I don't know if you want to take this or if the maker wants to take it. But those are my two questions. Thanks. CHR KIERKIEWICZ: Council Member Kimball. MS. KIMBALL: Yes, with respect to the first question around insurance, and I'll add into that lenders; I did make some calls around to some of the Page 5 PCPLUED-31 September 15,2026 insurance companies here. They don't actually distinguish based on the term, B&B. They distinguish based on the activity. So, even if you are saying you're a hosted rental, if you're engaged in a commercial activity,providing transient accommodations, that's going to affect your insurance regardless. It isn't tied to that terminology. Similarly, with lenders. So, I called up a couple of credit unions and couple banks.'If you're doing transient accommodation activity, it's not tied to the terminology of the word, B&B; it is tied to the commercial activity of providing a transient vacation rental. With respect to the owner-hosted versus operator-hosted, I don't know if we have Corporation Counsel Jean Campbell available. I did ask`hei to be here today, because I did think this question would come up. If you recall from our previous conversations around Bill 121, we are not permitted to legally distinguish between the two because of constitutionally protected property rights and the commerce clause. So, we had to treat them the same in terms of this land use regulation. Where we can treat them differently'is with respect to property taxes. And that's a whole other conversation, and I won't go there. But from a Land Use standpoints,there's not a legal mechanism to treat them differently that we could use. MS. KAGIWADA; Just one clarification, if I may. So, is that because we don't treatrenters differently than homeowners basically. Is that what that is about? MS. KIMBALL: It's more that we cannot provide different property rights for people that live on the property versus people that own on the property and don't necessarily live on the property. MS. KAGIWADA: Okay, thank you. CAR. KIERKIEWICZ: Corporation Counsel, did you want to weigh in at all? I don't know if Deputy CC (Corporation Counsel) is not here. Okay. Director Darrow. MR. DARROW: Yeah,just real briefly, one of the main things in drafting this bill that they wanted to make sure was that, and it's right in the definition of B&B, Bed & Breakfast, is that the home for the host is their principal home. So, it's not just somebody that's there as a reachable Page 6 PCPLUED-31 September 15,2026 person, or if this has to be their principal home moving forward. So, that question is very specific in the registration. Is this the principal home of the host, if there is a host? We have been receiving a number where is it owner-occupied. CHR. KIERKIEWICZ: Council Member Kagiwada, anything else? Okay. Any other questions? Council Member Kaneali`i-Kle nfelder. MR. KANEALI`I-KLEINFELDER: Jeff, following up on that question, how does the Planning Department verify that the owner lives in the house? Is it based on homeowner exemption, homeowner's tax category, or you have people go out and knock on the door and say, "Do you live here? Who's the primary person?" MR. DARROW: I mean, we take their word at it. It's if we were to get a complaint and Rentalscape is also our means of doing sweeps in regard to particular activities. If a particular rental is advertising that they're renting out the entire home, and we have a record that this is the principal home of a host, that's going to be a red flag. And we will get notified of that activity. As mentioned, that's one of the critical questions'when you're operating or coming in and registering for a Bed& Breakfast. Is this the principal home of the owner or host? Andthey have to answer, `yes"to that question, or they won't be able to move on., Soy we take their word at it. But again, if something does come up as far as a complaint, or something brought to our attention through Rentalscape, we will follow up"o'n'that. MR. KANBALI`I-KLEINFELDER: That is Rentalscape again? MR. DARROW: That is our enforcement program and also our registration platform: MR. KANEALI`I-KLEINFELDER: Third party operated or County operated? MR DARROW: Third party. MR. KANEALI`I-KLEINFELDER: They crosscheck rentals that are popping up or are on the market available for rent versus County rentals. MR. DARROW: There is a public portal that's going to launched very shortly, if it hasn't already where the public will be able to go and view the information. The intention was so that—you know there were questions Page 7 PCPLUED-31 September 15,2026 before. You could click on a property to see who the rental reachable person is or information regarding that rental, or whatever it is. But it's very impressive. We're happy that we were able to get this particular platform registration because the one we had previously was nowhere comparable to the opportunities and the options that this particular program is providing to the County. They're able to monitor so much more than the previous, and they're doing a lot of the monitoring versus staff,having to go in and figure it all out on their own through this. Again, they are the ones that work with the registration process. So, all of that information goes in to that program Arco becomes part of the information that they are presenting to us as well as to the public. MR. KANEALI`I-KLEINFELDER ,What is the cost for Rentalscape. MR. DARROW: I believe this year's cost was $289,000. MR. KANEALI`I-KLEINFELDER: Is it expected to be the same year over year? MR. DARROW: I believe so, but I''m not sure. I've got to confirm that. It might be less moving forward,because this was the initial launch. MR, KANEALII-KLEINFELDER: Okay. And then, to the maker, or to your,or maybe even to Real Property"Tax,just thinking to what you just said; if this is designed to be a Bed & Breakfast, and the wording I'm seeing is really keying in on Hosted,why not require it to the homeowner's tax class only? Why leave it open to interpretation, or a possible follow-up by someone who might come to the house to verify? Because the homeowner's tax class would be very specific to primary homeowners only. MR. DARROW: I might not be the best person to answer that question. MR. KANEALI`I-KLEINFELDER: I mean it's ongoing, we have three bills; let's have fun with it and figure this out. (Note: At this time, Real Property Tax Administrator Lisa Miura came forward to address the members of the Committee.) MS. MIURA: Good morning, Lisa Miura, Real Property Tax Administrator. If I understand the question correctly, it' how come they don't make sure they're already in a homeowner tax class when they register? Page 8 PCPLUED-31 September 15,2026 So, for all those owners already out there, that we are aware of that they're doing a hosted rental, they won't be in the homeowner tax class because they've already been designated to the appropriate tax classes. The homeowner tax class doesn't allow for any rental activity of under 180 days. So, more appropriately, they would look for if there was a homeowner exemption being provided which is listed on our website. Does that answer your question? MR. KANEALI`I-KLEINFELDER: Yeah, and then your understanding of the bill, Administrator Miura, is that we're going'to create a carveout for the new Bed & Breakfast category for these homeowners. MS. MIURA: Well, I'll be honest, I had tea,ask for the bill to be emailed to me not long ago because I couldn't download it from Laserfiche. So, as I read it correctly, what I understand this bill does it's more for the Planning Department under Section 25 not so much Real Property. We're just here in case there were questions. We were asked to attend just in case anything fell into the Real Property Tax side. Not to take away from Planning, but I believe this is more for them. MR. KANEALI`I-KLEINVELDER: Okay, thankyou. Mr. Darrow,just reading through the initial part of the bill. I mean;we created the definition of host; we created the definition of'STVR, or at least these are amendments that are being brought in wiih,Bill 147. Not the amendments coming to Bill 147, but what Bill 147 actually does. So, when we define host, we define STVR; we define TVRs (Transient Vacation Rentals). What I see we really home in on is a homeowner that's providing a space for rental correct` MR. DARROW: It applies both to the homeowner as well as to the host, which:would be a renter of that particular home. We look the definition of principal home. So,that's where that keys in, right? It's not just somebody that stays there a month out of the year. They have to live in this home, and the home has to be identified as the principal home for the people living there. MR. KANEALI`I-KLEINFELDER: I agree, which is why my brain goes to homeowners tax class, because that's principal homeowners. And so, I'm trying to figure out why. MR. DARROW: I mean, from what we just heard is that it doesn't apply if you end up using your home for rentals under 180 days. And again, I'm not sure what happened through the previous bill regarding tax relief. But that's always something we can look forward to and possibly consider other options for a relief. Page 9 PCPLUED-31 September 15,2026 MR. KANEALI`I-KLEINFELDER: Okay, I yield. Thank you. CHR. KIERKIEWICZ: Thank you. Council Member Onishi. MR. ONISHL Thank you, Madame Chair. I have multiple, but I'll ask this first. So, you mentioned earlier with passing this bill it will help those that are doing B&Bs. MR. DARROW: At this point, this is identifying those that are doing hosted rentals as B&Bs. It's a term. I mean, you could term'it hosted rentals, but they're both similar or the same. MR. ONISHL But you're saying it will help them in the process of registering. MR. DARROW: It will help them because they won't need to do a Land Use permit before the Planning Commission. MR. ONISHL For those that are in Residential. What about the other? MR. DARROW: There's a number in the Agricultural District that are operating under Single-Family dwellings that would be permitted. They would not need to go through a Land Use permit. There are some that are operating in Farm dwellings. They would need to go through a Special Permit process. MR. ONISHL Then,I think there was testimony from Kona about Resort zoning. So,maybe you can"explain a little more about that. They had some concerns, right? MR. IJARROW-,I think it was the Multi-Family (RM) district. The Resort zoning is'basically where you want to see transient, or hotels, or tourism. That kind of activity. So, that's been permitted currently as well as proposed,it the new bill. In the Multi-Family Residential zoning district, the RM district, it was permitted in Bill 108. It is in our current Code under Section 25-4-60. It is being proposed to be permitted. It is being proposed to be'permitted. One of the amendments takes it out as a permitted use, but states after that if that particular existing condominium or development within the RM zoning had received plan approval prior to the effective date, then they are okay to go. It's basically having a cutoff that anything beyond the effective date will no longer be permitted in RM zoning district. Page 10 PCPLUED-31 September 15,2026 MR. ONISHL Okay. So, you mentioned about that amendment. So, if the amendment doesn't get introduced to this existing bill, they'll be okay? MR. DARROW: I believe so,yes, it will be a permitted use. I mean, that's kind of working through these amendments. We have four of them we've got to get through. But the original amendment, there's been back and forth on this issue. I think where we're at right now is, allowing it in existing RM are those that have received the permit or the plan approval to be able to build. The intention with that is because we've heard'fromIquite a number of people saying that they have bought their condominiutn'or they were planning on building the condominium with that option in mind that's currently an allowable use. For us to be able to cut it out, andhalf of those people in that condominium are operating; and the other half, that was almost like taking away an opportunity that was available to them up xo that point. And some of them said they even purchased with that intended mind. MR. ONISHL Okay, L'll yield,for now. Thank you. MR. DARROW: Thank you. CHR: KIERKIEWICZ: Thank you. I could actually ask Administrator Mivara to come forward today because a number of constituents that have reached out that"are not quite sure what to do at this point. They play by the rules; they,want to be in compliance but there are concerns about they're not being any protection'regarding amnesty and the potential of paying back taxes. I know 25 is related to zoning, and this may not be the appropriate vehicle but I feel it's very important to just ensure that this is part of the conversation. So, that this body or the future Council knows what to do next. Sox Administrator,your interpretation because that bill died trying to create a whole new class, which I don't think many members were in favor of, clearly because the bill did not advance. But the idea of providing amnesty, how is your office treating that now? What sort of guidance are you operating under? MS. MIURA: Lisa Miura, Real Property Tax Administrator and Keita Jo, Assistant Administrator. So, currently, when owners come into Real Property Tax, and they let us know that they are operating a hosted rental, or Page 11 PCPLUED-31 September 15,2026 doing rental of less than 180 days, whatever the wording is. Then we adjust for the current year and go forward. And we explain that to them. That's they're way of self-reporting. If there's a complaint filed, or it's found out through another means then we can do the current year, which is allowed in the Code up to two years back. And we usually check if there's been reviews and listings in the prior years. There's several ways we can look them up to confirmit, but we don't just take the complaints by word-of-mouth. That's how we've been doing it for all these,years, even„prior to the discussion that's happening with Short-Term Rental, and,Short-Term Rental having blown up so much lately. And previously,that was even when it was a regular rental. Because until County Council changed thattwo years ago, there was no rental activity allowed. And to be clear, it was rental activity or Commercial use not tied to Agriculture. So, that's how we've always been handling it. When it's self-reported to us, we do current year forward. That is not in'the Code. That is something we have been doing because it seemed over-reaching to have the public come in and be honest whether they knew it was the requirement or not, right? A lot of individuals don't realize all of the changes that have happened. That's how we've been treating it; CHR: KIERKIEWICZ: That's very helpful, thank you. I just wanted to make sure that was on the record and invite folks to ask any questions that they,,mi,ght have of the Administrator. Council Member Kimball. MS. KIMBALL:' Just'to make one comment on that and I don't want to inflate things,but I have resubmitted a bill that will just address the amnesty that doesn't create the new tax class. I haven't even told Administrator Miura yet, but I believe the first week of October. So, that will basically codify what they're doing. CHR KIERKIEWICZ: Okay, that's helpful. So, that there's future guidance in our Code for Ms. Miura and future administrators. Yes, thank you. Okay, if there are no other general questions for the introducer or Planning Department— sorry' I want to check in with Council Member Hustace in Kona, I think your light is on. Do you have comments or a question? MR. HUSTACE: Thank you, Chair. I do have some questions for the Planning Department if that's okay. CHR KIERKIEWICZ: Absolutely please proceed. I'm so sorry I missed you. Page 12 PCPLUED-31 September 15,2026 MR. HUSTACE: Director Darrow,just a couple of questions on—we talked about this a little bit last time, and I don't know if a got a clear answer. If you know how many hosted operations currently exceed five bedrooms. MR. DARROW: I do not have that number. We have a number of, and it's not very many, of what we call lodges or inns that have come in for Special Permits. Right now, the Code identifies Bed & Breakfast and STVRs as five bedrooms or less. Anything above that in the Code is defined as a hotel, six or more rooms in one or more buildings. But it also can be termed an Inn or'a Lodge. Typically, we see these in Agricultural districts, and'we've had some that have come in with quite a number of rooms. We've had some that just come in with six or seven rooms. But typically, we see them in the Agricultural zoning districts and apply for a Special Permit. We've also seem where somebody had been operating as a Bed &Breakfast, and they come in for an amendment to increase the amount of rooms; over five. And again, it'll be termed as a Lodge or an Inn.' In the past, typically,we received complaints, and we will made known that particular operations are going on. We cannot directthem to apply for a B&B or a rental that is less than five bedrooms or less if they're wanting to go and increase that number. We would then direct them to be able to come in as a Lodge or an Inn. My understanding is there is a significant difference, the way that the Building Department looks at these for permitting. MR HUSTACE': We kind of talked about that the last time. The Division Chief spoke about that'. But they've been operating legally up to this point, correct? MR. DARROW: Not correct. MR. H1..TSTACE—But we haven't helped them transition to Lodges, correct? MR. DARROW: Typically, what happens with what we go through as far as Planning is, we will receive a complaint. And I'm not just talking about lodges I'm talking about whatever activity. It could be an auto repair business in a Residential Zone or something. Some of these activities could be operating for years without a complaint, and then we get a complaint. And they say we've been operating legally all this time. The actuality is you've been operating but the term legally, I would say, is not correct. They would probably need, if they're in an Agricultural zoning, a Special Permit to operate legally. Right now, in a Residential zone to operate a rental, more Page 13 PCPLUED-31 September 15,2026 than five bedrooms, there's not an option. We can look at an option moving forward if we find that are a number of these, and we could look at a Use Permit avenue. We're not opposed to that. But again, we look at legally in terms of having that particular permit that is needed to operate that land use. MR. HUSTACE: So,just to be clear, those that have six bedrooms or more are operating illegally? MR. DARROW: I can't, I mean we've have to look at each one to make sure. Some could be operating in a Commercial zoning and they may be legal. Some could be operating in an Agricultural zoning, We would ask them to come in for a Special permit. Some may be operating in'a Residential zone. As mentioned, we don't have an avenue, but we could,direct them to justrent out five bedrooms instead of six or seven. MR. HUSTACE: Okay, it just seem that the department hasn't done their due diligence in terms of the numbers that are ouf there, impacting community that some of these are operating potentially legally, or illegally, as you've just stated for the record that more than six bedrooms there are typically illegal and operating as such. Okay; Would you have any concern as using September I't as a start of the new registration program as a cutoff to'prot&t,existing lawful and hosted of five or more bedrooms; more than five bedrooms. MR, DARROW:; I would have a concern in the sense that we would end up treating them differently than what we are treating others in a similar situation that have five bedrooms or less. So, the first thing we would need to do is look at this holistically. If it's in'a Residential zone, we would need to identify that we allow that type of rental up to a particular amount of bedroom through an avenue. Whether it's registration, similar to what we're asking now for those in five. If they're in an Agricultural zoning, we may be able to look at it how we're looking aft now. If they're operating in a Single-Family dwelling, we could consider those possibly as permitted. But again, these would require Code changes: If they're operating in a Farm dwelling, or an additional farm dwelling, we would have issues with that. And there's no way we could override the State Land Use Agricultural requirements for those particular operations. MR. HUSTACE: What sort of standards would you see to recommend like a distinguished but bonified Ag operation with those accessory hosted accommodations on site? Page 14 PCPLUED-31 September 15,2026 MR. DARROW: Typically, when somebody comes in for overnight accommodations, we are looking at the agricultural activity that is occurring on site at the time they come in. When they come in to apply for that particular dwelling, if it is an additional Farm dwelling, there's quite an extensive process they've have to go through right now. But part of that process clearly says that they're not supposed to use that for overnight accommodations. It's meant for farm workers to be able to actively farm the agriculture on site. A Farm dwelling is typically your first farm dwelling, and they are allowed with this Special permit. But the additional farm dwellings have specific requirements that it's for farm workers. MR. HUSTACE: Okay, I think there's more to explore there. The registration program that we have operating right now, how many hosted or unhosted applications have been received afthis point? MR. DARROW: Looking at it this morning,we've had approximately 20 STVRs. They're the ones that came in:after September lst. (B And then we had approximately 30 BBRs (B&Bs). Our.',feeling is that they're waiting to see what happens with Bill 147. Because typically when we launched, we had a significant amount of applications come in pretty quickly to be able to operate an STVR. But we anticipate with whatever happens with Bill 147, we'll have those numbers pick up quickly. MR. HUSTACE: What sort of applications have been received. And there were en ails going out as well too, correct, to those that were operating already legally? MR. DARROW: Yes, those are the deemed registered permits or were registered prior, STVRs and Nonconforming Use certificates; as well as Bed & Breakfast that received a Use permit and a Special permit prior to September 1't. MR. HUSTACE:I Through the applications we've received, have you seen some outstanding or recurring conflict between their status and Chapter 25? MR. DARROW: Just two so far that I've seen that try to request a Short-Term Vacation Rental in an area that is not permitted. It would allow a Bed & Breakfast, but not a Short-Term Vacation Rental. So, those two were returned with the request that if they wanted to resubmit and request a B&B, they would be able to go through. MR. HUSTACE: Okay. Last question, Chair, for Planning Director here. Are there any categories of the current loft operators that you believe would lose their ability to operate because of Bill 147, as its currently written? Page 15 PCPLUED-31 September 15,2026 MR. DARROW: In looking at the overall bill, as mentioned before, is that this bill will actually make it simpler for many doing the hosted rentals in Residential, as well as quite a number in the Agriculture. The only big change I see is, if the change happens to the RM Zoning District where it would limit to those that exist or have received plan approval. It would stop the allowance of STVRs in RM zoning from the effective date moving on. MR. HUSTACE: Thanks Chair. CHR. KIERKIEWICZ: Thank you, Council Member Hustace. Council Member Galimba and then Kaneali`i-Kleinfel.der. MS. GALIMBA: Thank you, Chair. I have a question aboutthis discussion about five bedrooms or more, and I wanted to ask the maker about this. I imagine that there is a Building Division permitting aspect to this. Could you explain that? MS. KIMBALL: So, when Building Division Chief was here, Aaron Spielman, last time, he expressed thatper the Building Code, if you're renting more than five bedrooms, then you transition out of one class of building to another. And there's additional requirements when,you go from the Residential class to this other class, including if it's more than five bedrooms and your occupancy is over ten, then you need to start putting sprinklers in and other fire suppression pieces. So, the original language that is in Chapter 25 that is around the five bedrooms and defining five bedrooms or less is B&B; and then more that that is hotel and inn, is really tied to these Building Code requirements that have to do with the number of rooms for rent Now, with thatsaid, you can have a seven-bedroom house; have the host be in two bedrooms and'only rent five, and you're still in compliance with all this. It's when you;get to renting six or more that you need to take one of these other permitted pathways, and that is because of the Building Code requirements. MS. GALIMBA: Thank you for that. I wanted to shift to talking about Special permits. So, how come you folks are currently applying for a permit or Special permit on Ag land or have recently gotten a Special Permit for that use. MR. DARROW: So, I don't have the exact number, but it's approximately 30. What ended up happening is,you know, there was information provided through the release of Bill 147. There was a webinar that was done; there were frequently asked questions that was sent out to the public. And there was a specific date that was identified as to when the registrations would begin. Page 16 PCPLUED-31 September 15,2026 If you had come in prior to that date, and you were doing a Bed& Breakfast, and you were accepted, then you didn't have to pay the annual fee moving forward. And so, we have quite a number trying to get in under the wire. We still have some coming in. I think they were hoping they would get under the wire, but clearly the launch has begun. But we'll work with them through the process. That was the main reason why that influx occurred. MS. GALIMBA: Thank you. And could you talk a little bit about the difference between a Special permit application and a Registration permit. Just looking at the applications online, I do see a lot of overlap: So,what are the differences between those two? MR. DARROW: So, a registration is relatively simple. I mean you put in information that's relevant. Your owner's information, if there's reachable person, that information. And then, you just briefly speak to the amount of rooms; the amount of parking; if the',host lives on site; if it's a principal home. These questions wouldn't apply if you picked STVR. So, some of the questions would be blacked out. But mainly, they're looking for the amount of bedrooms and the amount of parking; a reachable person, that kind of information. Then, at the end,you have the compliance checklist, right. It's like, are you in a permitted zoning? And this is why we ended,up going through the process and conditionally approving everybody that applies. So that we could do the review. That,period of time, where we have a grace period and be able to check to make sure they're in"apermitted zoning district; check to see if they have the necessary building plumbing, electrical; check to make sure they're not operating in an additional Farm'dwelling, that kind of thing. Then,just your typical safety requirements. Once they check those, they're done: -That's the main part of registration. We have them in our system, we know who they are;we have their email address; we know how many rooms. At that pointy Deckard is able to use that information in the advertising. For a Special permit, it will still ask the same type of questions, but it's more looking at'the broader picture; how is this impacting agricultural lands? That's the main issue with Special permits; is this having an impact to prime agricultural lands; is it taking away from the agricultural inventory. When we look at B&Bs, typically, our requests are within existing dwellings. So, there's not much of an impact that hasn't already occurred. And we make sure that as part of the application they are complying with the requirements of State Law regarding agricultural activity on site. Typically, it's very rare that we will recommend denial on an application such as that. We typically recommend that it be approved. Page 17 PCPLUED-31 September 15,2026 MS. GALIMBA: Thank you. It does need to the Planning Commission, which obviously is a little bit more of a hurdle. But thank you for clarifying that, and I yield. CHR. KIERKIEWICZ: Thank you. Council Member Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Okay, Jeff, trying to wrap my head around this. I'm going to dig into my district and a huge chuck of our island; mainly Districts 4, 5, and 6. Those are all pre-1976 Ag lots being over one acre, which equates them being able to get a second dwelling without too much County bureaucracy. And those would be no Farm requirements,just the Traditional dowelling, which is pre-1976, which is interpretation by the County on the allowance of being able to build those extra dwellings, correct? MR. DARROW: So, the way that we look alit is, coming out of State Law, it refers to a particular date, that if the lot was created prior to this particular date, the dwellings are considered Single-Vamily dwellings. After that, if the lot was created, they're considered Farm dwellings, right? The Planning Department came up with the term, Additional Farm dwellings; anything that goes beyond your initial'Farm dwelling. And as you come in and request additional dwellings, the requirements to be able to show agricultural activity on the property increases as you request those. That's been changed lately, but I won't go into that. To getto your question, the first dwelling we would look at because it's a pre-76 lotwould be a Single-Family dwelling; the second lot would be identified as a First Farm dwelling. We have the applicants fill out a simple form for the FirstFarm dwelling that says, this is State Law; these are the requirements, you're fire required to comply with that. We don't coo a Farm plan; we don't go to that extent because we have literally thousands of First Farm dwellings. We don't have the manpower to be able to manage that. That's why we've taken the initiative on any additional Farm dwelling for the heavier requirements. MR. KANEALI`I-KLEINFELDER: The First Farm dwelling is the second unit. MR. DARROW: On a pre-76. So, if they're operating a B&B on a pre-76 in the First Farm dwelling, that would trigger the need for the Special permit. If they're operating out of the Single-Family dwelling, that would be permitted. Page 18 PCPLUED-31 September 15,2026 MR. KANEALI`I-KLEINFELDER: Okay, I'm going to get back to that in a second. So, this applies to pretty much every major subdivision in Puna, Ocean View, that's ten to thousands of lots. MR. DARROW: Sure. So, that's again, the understanding that we are creating an opportunity that if this doesn't pass, they would all have to come in for a Special permit for those particular operations. MR. KANEALI`I-KLEINFELDER: If they're using them as a B&B. If it's a long-term rental, it's fine? Okay. So, these would,be mostly homeowners, correct? You own a lot; you own a home;you live in"the home. You have a second dwelling, your First Farm dwelling. And that would be defined then as a hosted. MR. DARROW: Hosted or B&B, as it is now. MR. KANEALI`I-KLEINFELDER: It's interesting in the definitions, STVRs are considered unhosted; TVRs are considered hosted. MR. DARROW: TVP,is the umbrella term for ail of them. So, both STVRs and B&Bs fall under TVR. MR. KANEALI`I-KLEINFELDER: It's confusing because Short-Term equaling ST Vacation Rental versus TVR, which is Transient Vacation Rental: I think it's confusing. It may need to be adjusted, because it's the same three letters, but they mean different things; but they're tied to each other,and I hate that. We had Comm. 806.9,which was sent to us, which is B&B hosted scenarios in'SLU Ag district. State Land Use, so,pre-1976. I think this is meaning if Bill 147 passes, then a Special permit not required for a Single-Family dwelling being a hosted rental; and a Single-Family dwelling with an ohana, Special permit not required. And even a Single- Family dwelling with an ohana with an additional Farm dwelling, no Special permit required using those as Vacation Rentals. MR DARROW: Not the additional Farm dwelling. MR. KANEALI`I-KLEINFELDER: Okay, one long term. MR. DARROW: Well, the additional Farm dwelling is for farm workers. That's clear. But yes, long-term or an owner. But it definitely cannot be utilized for Short-Term Vacation Rentals. Page 19 PCPLUED-31 September 15,2026 MR. KANEALI`I-KLEINFELDER: I mean, the density impact would be Single-Family dwelling with an ohana with an additional Farm dwelling on a pre-1976 lot in the State Land Use Agricultural district. So, this is pretty much the entire East side of Hawaii. This is the document; I'm just looking at the document part of it. MR. DARROW: That document tried to take in every possible scenario, right? That is one of the very rare scenarios. I don't ever recall somebody coming in for an additional Farm dwelling when,there's been two dwellings on one acre already, right? Because the additiori4l Farm dwelling has to show that there's a need for that third dwellingbased,on.agriculture. When you already have the low almost'developed to its full extent, the likelihood of you getting that approved; it was just used as a scenario because of the fact that somebody could try to do that. MR. KANEALI`I-KLEINFELDER: Okay, let's tone it down then. So, we go put two dwellings on every lot across Puna with no Special permit required. Puna to Volcano. I mean, all the-way across the island, right with double density. MR. DARROW: It wouldn't require a Special permit to build dwellings. MR. KANEALI`I-KLEINFELDER: No,'I meant to say that Special permit is not required.:. MR.DARROW: No, I mean, that scenario there is for hosted rentals or Bed & Breakfast opportunities. So, it's trying to tell you, if you have this on your lot, you need a Special Permit if you're operating, or you don't, right? It's not in relation to, if you build two dwellings. It's whether or not you are drying the Bed,&Breakfast, that scenario. MR. KANEALI`I-KLEINFELDER: Okay, so, I'll rephrase that then. So, I could have my Single-Family dwelling where I live; another dwelling, pre-1976,no Farm plan required. Build the second unit. Bill 147 passes. I can now use it as a B&B. No Special permit required, correct? MR DARROW: I would look at that scenario. Here, let me pull it up. Once you operate in a Farm dwelling, it triggers, the Special permit. So, you have to be in the Single-Family dwelling, not to trigger. MR. KANEALI`I-KLEINFELDER: Okay, so the wording that was put into this document. This is Scenario No. 2, two dwelling units. Single-Family unit plus an ohana. Host must reside in either the SFD (Single-Family Dwelling) of the ohana. Guests may be housed to up to five bedrooms in Page 20 PCPLUED-31 September 15,2026 the Single-Family Dwelling; or up to five in the ohana or up to five total bedrooms between both. The main thing, being, host must reside on property. MR. DARROW: Correct. So, that is when you look at some of these older subdivisions, there was period of time where Ohana dwelling were allowed and permitted. And so, when you look at Paradise Park, for example. When you bring up our GIS (Geographic Information System) zoning map and you identify ohana dwellings, there's quite a number of properties that have ohana dwellings. Those were not permitted as Firm dwellings; they were permitted as Single-Family dwellings. So,y`ou have two Single-Family dwellings on that property. The ohana is considered a Single-Family dwelling. MR. KANEALI`I-KLEINFELDER: So, there is nothing submitted to us as far as what a Single-Family dwelling plus a First Farm dwelling would be. But what I'm hearing is, would a Special permit be required to have a Vacation Rental in addition to your First Farm dwelling; Special permit required. MR. DARROW: Yes, and I believe that's clear obthe'bill. MR. KANEALI`I-KLEINFELDER': Then, anyone that's existing and operating a Single Vacation'Rental out of their Farm dwelling. MR. DARROW: Yes. MR. KANEALI`I-KLEINFELDER: They're already in the program? MR. DARROW: No, I mean, that's why we're doing this is because many people are operating without permits. MR. KANEALI`I-KLEINFELDER: Okay. I continue to have my concerns about density and buildup especially, in private subdivisions. Okay, thank you. CFIR, KIERKIEWICZ: Thank you. And just so everyone's aware, I do plan,to end the meeting at 10:55 a.m. regardless of where we are. So, we stay on track with all the agendas that have been published and folks are going to be showing up for. So, if we do not get through all of the amendments, we're going to postpone to the next Committee meeting. Council Member Kimball. Motion to Amend: Ms. Kimball moved to amend Bill 147 with the contents of Comm. 806.5. Seconded by Ms. Galimba. Page 21 PCPLUED-31 September 15,2026 CHR. KIERKIEWICZ: Council Member Kimball. MS. KIMBALL: Yes, thank you. So, Bill 147, of course, had to go through both Windward and Leeward Planning Commissions. Both Commissions approved Bill 147 unanimously, with amendments proposed in the Director's report. This housekeeping bill incorporates some of those amendments as recommended by both Planning Commission. I will note that some of the recommendations in the Planning Department are deakwith another part of the Code, or from a drafting standpoint, not something,that we do. So, they are not included. So, I'll just walk you through very quickly. Section 1 here, we're just making clear that for the Bed'& Breakfast or the hosted TVR is located on the same building site. So, that just clarifies that language. The second one here, Section 2with'the definition of Family. This actually addresses that occupancy rate and making sure that it's clear that when we count occupants, we count family; different from how we count visitors. And that actually has to do with the Building Cede requirements around fire, safety and whatnot. The third section, that language there is located in another part of Chapter 25, so, it's duplicative and unnecessary in Bill 147. SectionA brings in those situations where it is not considered an STVR. So, those are all of the exemptions that are provided with respect to the TAT (Transient Accommodation Tax); so that are things like students that are renting,a dwelling while they're in school, or folks that are here on a military assignment: All of those exemptions from TAT are being brought in here, as well as folks that are renting month-to-month under Landlord-Tenant Code. And this is where we have the language where people are exempted if they're housing temporary'health care workers in the County. The next section here where in terms of where Bed& Breakfast are permitted. This is' 'Where we've changed the language a little bit to get to some of the questions that Council Member Kdneali`i-Kleinfelder was asking, where if it's a pre-76 lot, it's not a Farm dwelling. So, there's not going to be Special use requirement. But if it's post-76 or it's a pre-76 with a second dwelling,you're going to have that requirement for a Special Use permit. So, that is clarified there. Page 22 PCPLUED-31 September 15,2026 In the next section, where we're moving this STVR not permitted in a Multi-Family dwelling. We've just moved that down to General Provisions. So, that's been relocated from that section to the General Provisions section. We have the comment here that it's subject to Chapter 6, Article 7 of the Code. That's just a reference to the registration process in Chapter 25. You have the clarifying language about if there is a Special Use permit or Use permit that is in place for a TVR, those conditions that were provided with that Special Use permit supersede the operating standards. So, this was something that was in there already but the language was a little vague. So, we just wanted to state that clearly. And then this is where you've moved that condominium property regime language. In the next section, you have the addition of emergency hazard information being posted. This was a request by Civil Defense and R&D (Research and Development) to make sure that all Transient Vacation Rentals hart this information for visitors about what to do if they hear the sirens or how to evacuate, and all of those things. So, we're happy to add that in. The remaining comments here are just clarifications, other amendments, editorial amendments requested by„the department;the background report to the commissions. Then, I'll just take everybodyto the very'ed'in Section 6, there's two uncodified sections here; one is, because we're anticipating an influx of potential permits, to extend that time period when the Planning Director is required to accept the request for Special permits. In rule, it's set at 15 days. There's probably;just not going to be the time to turn around everything within that time; So, there's a,grace period there. As well as removing the signage requirements. We didn't want to have signs all over the place as we go through this transition period and we're just waiving that. If I may,just one final one. The last section there is one other noncodified section that makes it clear that the Planning Director will work with applicants, and there's a time period to get everything in compliance under which they'll operate a conditional permit with moving that through. So, ask for everybody's support on of this housekeeping amendment bringing in the Planning Department's and the Commissions' recommendations. Thank you. CHR. KIERKIEWICZ: Thank you. Director, do you have anything to add? MR. DARROW: Just hoping for support. Thank you. Page 23 PCPLUED-31 September 15,2026 CHR. KIERKIEWICZ: Okay, any questions? Reminder, we're on Communication 806.5. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Director, looking at the changes to the definitions, so clarifying, Bed& Breakfast now means a Transient Vacation Rental, which is a hosted rental, that is located on the same building site; and incidental and subordinate to the use.of the building site. What does that mean in regard to changing it from to the use of the principal home. So, when we say principal, we say principal home versus the building site, we've now grown that area. MR. DARROW: As mentioned before, backing up a little bit, TVR was the umbrella. So, it's not just hosted; it's unhosted and hosted.' So, B&B is a TVR which is the hosted portion of the TVR located on the same building site and incidental and subordinate. My hope was that we could take outthat phrase of the building site. MR. KANEALI`I-KLEINFELDER: Why?, MR. DARROW: It's redundant. We're already saying that it's located on the same building site previously.- -But it's incidental and subordinate to the use as the principal home of the host. MR. KANEALI`I-KLEINFELDER: That's the original language. The amendment changes it now to say not the subordinate use of the principal home, but the subordinate use of the building site. That's an interesting switch. MR DARROW. It is,but I'm not sure if that was the intent. It could have just been that building site was put in there twice. MR KANEALI`I-KLEINFELDER: Building site touches back on Host definition, which means a reachable person who resides on the same building site as not'a TVR,anymore, but a B&B. I'm just reading it. MR. DARROW: I hear you. Again, the intent is that the host has to reside on the building site, and the use of the building site is incidental and subordinate to the main use of the principal home. MR. KANEALI`I-KLEINFELDER: So, the main use of the Bed & Breakfast should be the principal home. Being the principal homeowner. MR. DARROW: It should be subordinate and incidental to the use of a principal home on the building site. And that's actually very similar to the current definition that we have now. Page 24 PCPLUED-31 September 15,2026 MR. KANEALI`I-KLEINFELDER: So, for the Planning Department, not for you Jeff. Sorry, for the Planning Department, the building site is redundant as an addition to the definition of B&B versus incidental and subordinate to the use as the principal home of the host. If it's confusing then why are we doing this. I mean, seriously. MR. DARROW: No, again, I would ask the maker, the intent of the change. MR. KANEALI`I-KLEINFELDER: Okay. So, Ms. Kimball, the wording switch in your definition of B&B in Comm. 806.5removing—and it might seem manini. I'm just trying to put all this together.,The TVR is located on the same building site. And the inclusions now in this amendment, incidental and subordinate to the use of, not the principal,home, but of the building site. Then moving around host definitions, Transient Vacation Rental to B&B now. I'm just trying to wrap my head around why. MS. KIMBALL: So, this is to enable and align with the language that is currently in Chapter 25 with respect to Bed,& Breakfast. In terms of how we as a County and a State identify a principal home, it's not assigned to a building or a particular dwelling on'a location on a TMK(Tax Map Key). It is assigned to the TMK as a whole. So, that is why you have this addition of the language to just say, we are talking about the whole building site as being the principal residence of the host. Then the Bed &'Breakfast is incidental and subordinate to use of that entire site as the principal home of the host. So, it's really kind of an editorial change just from the standpoint of how we identify a principal home as being a whole TMK, not just dwellings one a TMK. With respect to taking out the TVR and replacing with B&B, because to have hostonly apply tee the Bed & Breakfast and not all TVRs. As Jeff was saying, TVR is the umbrella. And under the umbrella of TVR you have STVR and B&B. So, that's again,just an editorial change to just make it clear that only a B&B would have a host, not all Transient Vacation Rentals would. MR. KANEALI`I-KLEINFELDER: Thank you for that. But I want to touch on that what you just said. What I understand right now is Bill 147 creates two definitions, STVR meaning unhosted Short-Term Vacation Rental; TVR meaning Transient Vacation Rental that hosted; host having to preside on site, correct? MS. KIMBALL: No, a TVR is a Transient Vacation Rental; that's anything that's rented for less than 180 days. If you have a host on that TVR, then it is a Bed & Breakfast. If you do not have a host on that TVR, then it is an STVR or Short-Term Vacation Rental. Page 25 PCPLUED-31 September 15,2026 MR. KANEALI`I-KLEINFELDER: Okay, I have questions, but I'm all done. Thank you. CHR. KIERKIEWICZ: It's a little tricky because terminology that we've grown accustomed to is now being completely upended. Okay. Director, do you have anything else to add? MR. DARROW: Yes, real quickly. I believe the maker of the bill was trying to take what's in the current code and simplify it. There's two sections in the current code. And maybe this might make it clear as to what the intent of the definition was. It says, "The Bed & Breakfast establishment shall be subordinate and clearly or customarily incidental to the principal use as a residence by its operator." Then the other part is, "The operator of the Bed &Breakfast establishment shall reside on the same building site, as that being used for the Bed &Breakfast establishment." Trying to incorporate it into one sentence. CHR KIERKIEWICZ: Thank you. Council Member Onishi. MR. ONISHL Thank you, Madame Chair. Mine was in regard, Director, in regard to the parking. So, an additional stall. With the parking, it's requiring them to have another stall. CHR: KIERKIEWICZ: Council Member, could you let us know which section or which page iu the amendment you're referring to. Thank you. MR. ONISHI: Scary. MR. DARROW: If I could, real quickly, Vice Chair Onishi, in discussions with the maker of the bill, Council Member Kimball, we had a pretty lively discussion on parking. And you had a section being added for Bed & Breakfast, and a section being added for STVRs. When we looked at it clearer, it seemed to make sense to just keep the current language that's in there in relation to less than 180 days. Because it captured both the Bed & Breakfast requirement; one per rentable bedroom; one additional, and it caught the STVR, which was two for the dwelling. So, it seems like that may not be needed moving forward. MS. KIMBALL: Yeah, we were talking about the language that, I believe you had put in in your previous term in Council. That's number (8) there in that parking section. It actually does cover similarly. It basically says the same thing. You need a parking for each bedroom available for rent; plus, one extra for the host on a Bed & Breakfast. So, that is something that we're continuing Page 26 PCPLUED-31 September 15,2026 to discuss about how best to phrase that. I'd like to put this forward, as it, and then we'll come back in with one more tweak on that. The parking for STVRs is like the biggest issue. MR. ONISHL Okay. Well, good if we could just have it done at one time instead of coming back again. MS. KIMBALL: Chair, if I may. I did want to put that forward as another option today, because we have four amendments If we discussed all four of them, and I had a sense of where people stood on'the other policy one, I could come back with one cleaner amendment at the nextheaaring. And we could just put that forward rather than doing each of these four independently. But as I expressed before, this first amendment is housekeeping, bringing in the recommendations from the Planning Commissions. The other three are more policy oriented in nature. And so, given the timeframe, I do want to make sure we have a conversation. I'm willing,to put this on hold for now, have those conversations about the other three, and then come back with one solid amendment that does all of them at one time: Once I know where people stand on the other issues. CHR. KIERKIEWICZ: Yes, and I know that other Council Members are also working on amendments. So, that would be wise. Council Member Onishi, do you have anything else? MR, ONISHL I yield. Thank you. CHR.'IKIERKIEWICZ: Council Member, would you like to withdraw your motion on'this communication? Withdraw Motion Ms. Kimball withdrew her motion to amend Bill 147 to Amend: with the contents of Comm. 806.5. CHR KIERKIEWICZ: Just want to make sure it's clear for the record. The motion to withdraw has been noted by our Clerk. You may proceed. Motion to Amend: Ms. Kimball moved to amend Bill 147 with the contents of Comm. 806.6. Seconded by Ms. Galimba. MS. KIMBALL: So, this is an amendment that creates the pathway for folks that have been renting from 31 days to 179 days after the passage of Bill 108. Since we've changed the definition here to be 180 days or less for a Transient Vacation Rental, aligning us with the Tax Code, at both the State and the County level, we needed to create a pathway to grandfather these in. Page 27 PCPLUED-31 September 15,2026 So, it is a use permit process for anybody that has been only exclusively renting 31 to 179 days after the passage of Bill 108. They will also only be able to, going forward, continue to rent from 31 to 179 days. Because otherwise, they would have been in violation of Bill 108. The use permit process allows us to go through and ensure that they've actually only been renting for 31 to 179 days. In that period, we are able to gather that information now. The reason that this wasn't included in the original bill is that I wasn't sure how many bills like that were out there. Based on feedback from Airbnb and Expedia, maybe around 300. So, given that there's that many, we did want to create a Use Permit process to allow them to be grandfathered in with this adjustment. So, asking for everybody's support on this one. Again, I will listen to the discussion. If everyone seems favorable towards this, I will put this into a comprehensive single amendment for the next hearing. CHR. KIERKIEWICZ: Thank you., Any questions on Communication 806.6? Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: I hate to put him on the spot, but we have Mr. Scheuer here, who's actually on the LUC (Eight UAS Unmanned Aircraft System Operator Certificate).' We may not ever have this opportunity again. This State Land Use Ag district discussion, and if you don't want to come up, I'm not going to bug you. But you are here. He was on the LUC. Could you just, if you,could. CAR. KIERKIEWICZ: Feel free to come forward. We have five minutes until we wrap up. Please activate your mic. Thank you. (Note: Atthis'time,'Land Use Commission Chair Jonathan Scheuer came forward to address the members of the Committee.) MR. SCHEUER: Aloha Mai Kakou, my name is Jonathan Likeke Scheuer. And as Council Member Kaneali`i-Kleinfelder noted, I was the Chair of the Land Use Commission when we upheld the County's previous STVR ordinance, which prohibited STVRs on lots created after 1976. MR. KANEALI`I-KLEINFELDER: Could you just summarize what that Rosehill discussion is and where it stands right now today? MR. SCHEUER: So, I have not served on the Land Use Commission since 2022. We were upheld by the Hawaii Supreme Court. The Land Use Commission's support of the County's position was upheld by the Hawaii Supreme Court ruled against Rosehill. And the crux of the case had to do with the Land Use Commission and the counties have a duty to protect the State Agricultural District. Page 28 PCPLUED-31 September 15,2026 So, with the exception of those earlier lots, and that date has to do with when a particular law modifying the State Agricultural District uses was passed. The State and the County do have an obligation to protect the State Agricultural District from nonconforming uses. MR. KANEALI`I-KLEINFELDER: You listened to the conversation today? MR. SCHEUER: I have been listening to the conversation yes. MR. KANEALI`I-KLEINFELDER: Any thoughts,just briefly. MR. SCHEUER: Not sophisticated enough,to really share with you at this time, other than the fact that I think it's important that you grapple really thoughtfully, as you are doing with this important issue keeping in mind that your significant public trust duties towards the State Agricultural District as you do so. MR. KANEALI`I-KLEINFELDER: Okay,thank you. I yield, Chair. Thank you, Mr. Scheirer, MR. SCHEUER: Thank you for your indulgence.I'm here for the next agenda. CHR: KIEHIEWICZ: We are aware, Mr. Scheuer. Thank you. Okay, any other questions or feedback for Council Member Kimball on this particular communication?� Okay. MS. IKIMBALL: Alright, seeing none, I'm going to take the lack of response,as support'and I'm,going to include this in the comprehensive amendment coming up next time. Withdraw Motion Ms. Kimball withdrew her motion to amend Bill 147 to Amend: with the contents of Comm. 806.6. Motion to Amend:;.... Ms.�Kimball moved to amend Bill 147 with the contents of Comm. 806.7. Seconded by Ms. Galimba. CAR. KIERKIEWICZ: Council Member Kimball. MS. KIMBALL: Yes, so this proposal would remove the addition of CN (Commercial Neighborhood), as an area where Short-Term Vacation Rentals are permitted. So, currently in the Code, in the CN zoning district, Short-Term Vacation Rentals are permitted in the Resort zones, but not in the other areas. Page 29 PCPLUED-31 September 15,2026 If this amendment were to pass, then we would remove that addition of CN, continued to be allowed in the Resort zones, but outside of the Resort zones, STVRs. Unhosted Vacation Rentals would not be permitted. This is in response to the Kona CDP (Community Development Plan) Action Committee request. So, asking for my colleagues to indicate support of lack thereof. CHR. KIERKIEWICZ: Yeah, and I'll just say that I don't think two minutes is sufficient for this body to engage in robust conversation about this particular amendment. I would actually prefer that we take each matter up via its own communication. There was mana`o provided by Vice Chair Onishi regarding parking related to Comm. 806.5. Butl think my preference is for us to take up each amendment as you have presented in the various communications. Thank you. With the amount of time left, if folks would like to provide mana`o on this communication, you're welcome to at this time. Council Member Inaba. MR. INABA: I just want to state for the record being that you are seeking our thoughts on these various amendments, my silence is to not support. I think we're unpacking, so; I just want to state thatfor the record; that when we do come back, for me not having said anything about some of these today, doesn't mean I support it. I think it's good that we were able to kind of just unpack it today. But further discussion would be had,nexttime. Thank you. CHR.'IKIERKIEWICZ: Thank you, anyone else? Seeing none, Council Member.,,'— Withdraw Motion Ms. Kimball withdrew her motion to amend Bill 147 to Amend: with the contents of Comm. 806.7. CHR KIERKIEWICZ: No motion is necessary, but the record will reflect that this motion has been withdrawn. MS. KIMBALL: If I can just ask then, the Chair and whoever else would like to weigh in for clarity, the preference is to continue deliberating these individual items separately as separate communications, as opposed to one single amendment that would incorporate everything. It's not clear to me where folks want to go, and I don't want to see this not move forward on procedural ground. So, clarity would help in terms of how folks would like to see this information. Page 30 PCPLUED-31 September 15,2026 CHR. KIERKIEWICZ: Yeah, I mean, given that we don't have sufficient time to get through everything, I think it's important to us to take a pause here now. We will continue to deliberate based on the communications that have been filed. I am aware of other Council Members submitting communications for consideration which may be in conflict with some of the communications that you have submitted. So, I think we want to make sure we have all of the puzzle pieces on the table as we begin to buildthat picture. Again, I think Council Member Onishi provided some thoughts on how Communication 806.5 could be improved. But like stated earlier, we will take each of these up at the next Committed hearing. Council Member Inaba, anything else. MR. INABA: No, I think that's good,because some of these amendments in their own light are a bit confusing. ,So again, we're not in complete support of one of them; and if you bunch them all together, it's probably not going to go over well. So, I think it's best to keep them separate. MS. KIMBALL: Thank you. And that's why I put them together separately initially, because some of these are very—they would represent a shift in policy for us that is different from'the housekeeping ones. That's why I pulled them out to be separate conversations. The other thing,,if I just may ask real quick. I don't want this also to get hung up based on terminology. As mentioned, we have TVR, we have hosted-, e have hosted being equivalent to Bed & Breakfast. We have unhosted'being equivalent to STVR, all falling under the TVR umbrella. I diet do a curciary review of everything to see what it would take to just change everything to say, hosted and unhosted. And both fall under the TVR definition. It wouldn't be too onerous. If that is something that people feel is critical moving forward, I'd like to know today whether or not I need to put that:amendment forward or not. Again; I don't want to terminology, the semantics to be the thing to be the thing that is the problem here. I'm happy to make that change, but it is not something that I want to put forward unless there's an interest from the body, because I don't want to confuse the matter further. Thank you. CHR KIERKIEWICZ: Council Member Inaba. MR. INABA: I think we've heard testimony regarding the changing of what a Bed & Breakfast is. So, if we can preserve what that is and we finally Page 31 PCPLUED-31 September 15,2026 term the rest of it, that might be a cleaner way to do it. Because right now, we're looking at a change to the current definition in the Code. But then we have amendments to the bill. That further changed those proposed definitions. So, I think at this point, it might be better to just leave it alone, or if we need to change the days currently defined in Bed & Breakfast, then we can do that, but maybe not mess with it significantly as it's currently proposed. CHR. KIERKIEWICZ: Council Member Villegas. , MS. VILLEGAS: Thank you for being willing to put that,option forward. I agree. There's so many changes happening in the world right now in so many arenas. And I know even for people in my family who operate in this sphere, the changing from STVR,to TVR; to Airbnb, hosted, and,all these transitional names creates fear and trepidation. And they're going to miss something. So, I think there is some stability in keeping with those names for simplicity and trackability. Because L myself was completely confused at the TVR versus STVR. Acronyms in general, people, by the way, aren't great forms of government. I mean they can'b necessary for quickening conversations and whatnot. But I think especially if the acronyms accidentally create extra confusion because the first letter of a word means a different thing in an acronym that"s related to another acronym. So, anyway, thank you for putting that forward: And I do know that what you don't think is that heavy of a lift is probably a pretty heavy lift; So, thank you for your willingness to pick that up,anyway to bring us back to a more simplified pathway. I yield. CHR. KIERKIEWICZ: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Just lending my support to going back to using hosted and non-hosted. I feel like we described STVRs, Bed & Breakfast; using these terms every time. So, we're just creating extra bureaucracy. I think hosted and unhosted is very clear and people under that,and that's how we describe these acronyms. So, it makes a lot of sense to me to just be clear with hosted and unhosted. Thank you for that suggestion. I yield. CHR KIERKIEWICZ: Thank you, anyone else. May I have a motion to postpone Bill 147 to the October 6t' meeting? Page 32 PCPLUED-31 September 15,2026 Motion to Postpone: Mr. Inaba moved to postpone Bill 147 to October 6, 2026. Seconded by Ms. Kimball. CHR. KIERKIEWICZ: There is a motion by Council Member Inaba, and a second by Council Member Kimball to postpone Bill 147 to Tuesday, October 6 h. All those in favor,please say "aye." Any opposed? Vote on Motion The motion to postpone Bill 147 to October 6, 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: Bill 147 is postponed and this committee adjourned at 11:01 a.m. Thank you. ADJOURN- There being no further business Chair Kierkiewicz adjourned the meeting MENT: at 11:01 a.m. Approved: Ms. Ashley L. Kierkiewicz, Chair (Date) Policy Committee on Planning, Land Use, and Economic Development AK/dt Page 33