Hawaiʻi County Council Advances Key Legislation on First Reading

HILO, Hawaiʻi – The Hawaiʻi County Council deliberated and passed several bills on their first reading during meetings held on May 21 and 22, 2025. These measures address a range of issues, including the County’s upcoming fiscal year budgets, adjustments to property tax appropriations, and new regulations for transient vacation rentals.

Among the significant bills that advanced were:

• Bill 31 (Draft 3): Operating Budget for FY2026. This bill establishes the County of Hawaiʻi’s operating budget for the fiscal year running from July 1, 2025, to June 30, 2026. Draft 3 includes estimated revenues and appropriations totaling $953,288,869. The bill passed with an 8-0 vote, with Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba voting “Ayes.” Council Member Villegas was absent.
• Bill 32 (Draft 3): Capital Budget for FY2026. This legislation outlines public improvements and their financing for the fiscal year ending June 30, 2026. Draft 3 of the proposed Capital Budget includes 89 projects requiring a total appropriation of $621,515,000. It passed with a 7-0 vote, with Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, and Chair Inaba voting “Ayes.” Council Members Kierkiewicz and Villegas were absent.
• Bill 47 (Draft 2): Transient Vacation Rental Registration. This bill proposes an amendment to Chapter 6 of the Hawaiʻi County Code to add a new article. This new article would require most transient vacation rentals and their hosting platforms to register with the County before commencing operations and establishes provisions for enforcement and penalties. This bill passed with a 6-3 vote. Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, and Kimball voted “Ayes,” while Council Members Onishi, Villegas, and Chair Inaba voted “Noes.”

Additional bills that passed their first reading, all with unanimous 9-0 votes from present members, include:

• Bill 44: Amends Chapter 19 of the County Code to exempt the value of buildings on Hawaiian Home Lands homesteads from property taxes and repeals references to outdated State law. (Ayes: Council Members Galimba, Hustace, Inaba, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Acting Chair Onishi – 9)
• Bill 45: Amends Chapter 14 of the County Code to update the Tax Map Key (TMK) and location for the designated “Chinese Weeping Banyan” exceptional tree to 2-2-29:08 Kilauea Avenue. (Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali’I-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba – 9)
• Bill 50 (Draft 2): Real Property Taxes. Amends Chapter 19 of the County Code to change the required appropriation of residential tier two property tax revenue for housing and homelessness from a fixed proportion of 75 percent to a fixed amount of $9,000,000. (Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba – 9)

Several bills amending the Operating Budget for the current Fiscal Year Ending June 30, 2025, also passed unanimously (9-0 votes from present members):

• Bill 48: Appropriates revenues of $270,000 in the Federal Grants – Federal Transit Administration Section 5304 Formula account. (Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba – 9)
• Bill 49: Appropriates revenues of $1,500,000 in the Federal Grants – 2025 Pathways to Removing Obstacles Housing account. (Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba – 9)
• Bill 56: Increases revenues by $78,671 in the Federal Grants – Justice Assistance Grant-Special Response Team Capability Enhancement Grant account, for a total appropriation of $129,028. (Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba – 9)
• Bill 57: Increases revenues by $22,600 in the Federal Grants – High Intensity Impact Grant account, for a total appropriation of $690,877.96. (Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba – 9)

These bills have successfully completed their first reading and will proceed through the Hawaiʻi County Council’s legislative process.