Complete STR study before advancing penalty-laden registry

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Hawaii County Council on June 4, 2025.
_____________

June 4, 2025, 9 a.m.
Hawai‘i County Building

To: Hawai‘i County Council
       Holeka Goro Inaba, Chair
       Dennis “Fresh” Onishi, Vice Chair

From: Grassroot Institute of Hawaii
            Joe Kent, Executive Vice President

RE: Bill 47 (2025)— RELATING TO TRANSIENT ACCOMMODATIONS

Aloha Chair Inaba, Vice Chair Onishi and other members of the Council,

The Grassroot Institute of Hawaii has concerns with Bill 47, Draft 2 (2025), which would create a registry for all short-term rentals on the island and establish penalties for operating an unregistered STR.

First of all, Grassroot believes the Council should wait until the results of the county’s economic impact study on STRs are released before passing any legislation adding rules to STR operations.

Beyond that, Grassroot is concerned that establishing a registry would harm the island’s smallest STR operators most. People who are renting a room out of their homes could face serious penalties for a small mistake, such as forgetting to file their annual registration form.

Grassroot appreciates that the Council amended the proposed fine schedule, replacing the $10,000 mandatory fine for operating an illegal STR with a sliding scale of a fine between $1,000 and $10,000 to be determined on a case-by-case basis by the planning department.

Thank you for the opportunity to testify.

Joe Kent
Executive Vice President
Grassroot Institute of Hawaii

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