After several months and multiple deferrals, Hawaii County Council Bill 147 has advanced, albeit with an unfavorable recommendation from the council’s Policy Committee on Planning, Land Use and Economic Development, which discussed the measure at its meeting Tuesday.

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After several months and multiple deferrals, Hawaii County Council Bill 147 has advanced, albeit with an unfavorable recommendation from the council’s Policy Committee on Planning, Land Use and Economic Development, which discussed the measure at its meeting Tuesday.

Introduced by Hamakua Councilwoman Heather Kimball, the bill would refine and make changes to regulations for vacation rentals on the island.

New requirements for operators of these rentals to register with the county and pay annual fees that were established through ordinance 25-50 in 2025 went into effect last month, and Kimball has said this bill is necessary to help ensure the process goes smoothly.

“I want to start the discussion today by saying I really do think it’s imperative that we move this out of committee today,” she said at the meeting. “The registration process has already begun, starting September 1, and we need to get things in line so that everything is copacetic for the department.”

However, Bill 147 has drawn confusion and criticism from members of the public who say it could make it harder for residents to supplement their income through renting out parts of their property, which some have said they rely on to get by financially.

Kimball said she understood those worries, and hoped to find ways to address potential negative impacts on residents.

“I share your concern. I do think it is something that we need to revisit with regard to people that live in these homes, but also rent a room or two to be able to make ends meet,” Kimball said.

But she pushed back on comments that the bill created a more complicated process for rental operators.

“What we’re doing here is actually an attempt to remove that level of bureaucracy…” she said. “If we don’t pass 147, the consequence is that everybody that is operating a hosted rental in the residential areas will now be required to come in and get a use permit. Therefore, adding to the bureaucracy that you claim that 147 is creating.”

Several amendments to the bill were also discussed Tuesday, including changes to terminology used to refer to vacation rentals. Bill 147 distinguishes between hosted and unhosted vacation rentals and labeled them as Bed and Breakfasts (B&Bs) and Short Term Vacation Rentals (STVRs), respectively. The amendment simplified those definitions, but North Kona Councilman Holeka Goro Inaba said he still felt it caused confusion and needed more work.

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“I think this is something that has continued to be an issue is messing with the term ‘Bed and Breakfast’, and I think that this amendment still does that,” he said. “It’s changing a definition, an established definition. So, I don’t know that I can support this, but again, I need more time to read right now.”

While Kimball has described several other amendments as “housekeeping” items, she did note one that she said would have policy implications. Made at the suggestion of the Kona Community Development Action Committee, it would restrict unhosted rentals in residential multifamily zoned districts.

“What this would say is that going forward, no new residential multifamily units that have not received plan approval outside of the resort nodes will not be usable for STVRs,” Kimball said. “That is a shift in policy, and I think it’s an important one, and one I support.”

Planning Department Director Jeffrey Darrow was present at the meeting to field questions. He said his department had begun receiving registration applications as well as questions about the implications of Bill 147, the undetermined status of which he said has created uncertainty.

“We’ve gotten an incredible amount of inquiries from the public. A lot of them are asking questions about Bill 147 — what they should do in regards to the fact, like I said, we’re kind of in this limbo state … ,” he said. “Once whatever happens with Bill 147 happens, we probably will see an influx of registrations come in.”

Because of the disagreement and confusion about the specifics of the bill, Kona Councilwoman Rebecca Villegas said it was important to remember the reasons for pursuing the legislation and regulation of vacation rentals in the first place.

“The intention is to realign our community to have an opportunity for long-term housing,” she said. “District Seven is inundated, overwhelmed, and disproportionately affected by the short-term housing markets for a number of different reasons, and so I would like that to be understood. That’s the deepest intention of this legislation.”

Villegas, Kimball, Ka‘u Councilwoman Michelle Galimba and Hilo Councilwoman Jennifer Kagiwada voted in support of the bill. Inaba, Puna Councilwoman Ashley Kierkiewicz, South Hilo Councilman Dennis “Fresh” Onishi, Kohala Councilman James Hustace and upper Puna Councilman Matt Kaneali’i-Kleinfelder voted against it.

The 4-5 vote gives the bill an unfavorable recommendation as it moves forward to the full council, where it will be discussed further and additional amendments may be made.

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Email Grace Inez Adams at [email protected].