The Legislative Journey and Council Deliberation

The path from Mayor Bissen’s introduction in May 2024 to the final signature on December 15, 2025, was anything but smooth. It was a period marked by intense debate, emotional testimony, and significant political maneuvering.

The Final County Council Vote Tally

The measure’s journey through the Maui County Council culminated in a decisive, yet closely contested, final vote on its second and final reading, held on December 15, 2025. The final count to advance the controversial bill was recorded as **five affirmative votes to three dissenting votes**. This alignment perfectly reflected the deep divisions within the council regarding the core tension of the island’s future: balancing the economic stability driven by tourism against the essential preservation of local, long-term housing stock.

Support and Opposition Within the Governing Body

The five council members who voted “yes”—Tamara Paltin, Gabe Johnson, Keani Rawlins-Fernandez, Shane Sinenci, and Nohelani Uʻu-Hodgins—were vocal proponents who framed the decision as putting “people over profits.” Conversely, the three members who cast “no” votes—Council Chair Alice Lee, Vice Chair Yuki Lei Sugimura, and Council Member Tom Cook—expressed significant reservations, citing concerns over potential negative economic fallout and questioning the bill’s enforcement certainty. It is crucial to remember the specific political context of that December 15th vote: the seat representing the Kahului residency, formerly held by the late Council Member Tasha Kama, had not yet been filled by the Council’s decision, thus impacting the potential voting balance on the nine-member body. Mayor Bissen subsequently announced the appointment of Kauanoe Batangan to this seat on December 16, 2025, with an official start date of January 1, 2026, underscoring the high stakes of that interim period.

Acknowledgement of Community Engagement

Throughout this long legislative process, Mayor Bissen offered profound gratitude to the numerous community members who participated actively. He specifically thanked those who offered public testimony, engaged respectfully in the democratic discourse, and demonstrated a sustained commitment to changing historical policy direction. This emphasis on public involvement served to validate the grassroots energy—represented by groups like Lahaina Strong—that helped propel the measure from its inception to its final enactment. This story of civic action is a strong case study in effective grassroots activism and local policy change.

The Specific Mechanics of Bill Nine Implementation

The law’s power lies not in its sentiment but in its specifics. Bill Nine is a precision instrument designed to target a specific segment of the market—those grandfathered TVRs in apartment zones.

Targeted Sector and Unit Recapture Projections. Find out more about Maui Bill 9 TVR phase out law.

The legislation focuses on phasing out the so-called **Minatoya transient vacation rentals** operating within the apartment-zoned areas. Projections from the Mayor’s administration indicated that this targeted phase-out is expected to successfully return a substantial number of units—reportedly **exceeding six thousand (6,000)**—to the long-term residential housing inventory. A significant aspect highlighted by officials is that this expansion of local housing inventory is anticipated to occur *without* the necessity of initiating any new construction projects, offering a fast-track solution to the immediate need.

The Role of the Temporary Investigative Group Recommendations

Bill Nine’s framework was strongly informed by the findings and recommendations put forth by the Maui County Council’s **Temporary Investigative Group (TIG)**. The Mayor explicitly stated his support for the TIG’s proposal concerning the reclassification of specific units. This involved recommending that **four thousand five hundred nineteen (4,519) units** be formally transitioned or reclassified under the newly established or amended **H-three (H-3) or H-four (H-4) Hotel zoning designations**. This path, however, required companion legislation, which opponents noted was not fully integrated into Bill Nine itself, creating significant uncertainty.

The Sunset Dates for Compliance

The law establishes a clear, staged timeline for affected property owners to transition away from transient vacation rental operations in the apartment zones. This staggered approach was a compromise intended to mitigate immediate economic shock:

1. For the units situated within the more heavily impacted areas of **West Maui**, the legislation mandates a final deadline for compliance by the **first day of January in the year two thousand twenty-nine (January 1, 2029)**.
2. For the remaining affected apartment-zoned districts across other parts of the county (including South Maui), a slightly later date is set, requiring the cessation of short-term rental activity by the **first day of January in the year two thousand thirty-one (January 1, 2031)**.

Options Available to Affected Property Owners. Find out more about Mayor Bissen signs Maui housing legislation guide.

The new legislation does not mandate a single, punitive outcome for every property owner facing the phase-out. Affected owners are provided with several distinct pathways for conforming to the new regulations, which owners might want to explore with specialized advice on Maui property owner options:

• Converting the unit into a legal, permitted **long-term rental property**.
• Selling the property outright.
• Retaining it strictly for **personal, non-commercial use**.
• Actively seeking a formal change in the property’s zoning designation to an appropriate, non-transient classification (i.e., the H-3/H-4 hotel zones).

Scope and Boundaries of the New Regulation. Find out more about Transient vacation rental restrictions Maui apartment zones tips.

Despite the dramatic nature of the phase-out, it is vital to understand what Bill Nine does not do. This law targets a specific zone, not the entire tourism economy.

Exclusions from the Phase-Out Mandate

A crucial element of Bill Nine is its clearly defined scope, ensuring that the legislation does not constitute a sweeping elimination of all forms of visitor accommodation on the island. The law explicitly states that tourism and short-term rentals, in general, will continue to operate within Maui County. Specifically, approximately **six thousand five hundred (6,500) parcels** currently operating as TVRs are slated to continue their operations, provided they are not located within the apartment-zoned districts targeted by this specific bill.

Continuance of Established Tourism Infrastructure

Beyond the exempted TVRs, the existing, substantial framework of the tourism industry remains fully operational under the new law. This includes thousands of units housed within established hotels and resorts, which are unaffected by the zoning adjustments related to residential areas. Furthermore, the law permits the continued operation of over **two thousand four hundred (2,400) timeshare properties** and numerous registered bed-and-breakfast establishments across the county, preserving a significant component of the visitor economy.

The Principle of Restoring Balance

The underlying philosophy articulated by the administration and supporters is the necessity of **”restoring balance”** to the county’s housing and economic landscape. This is viewed as prioritizing the fundamental needs of the people who call Maui County their permanent home over the financial returns sought by external investors and the transient rental sector. This prioritization reflects a deliberate, perhaps overdue, shift in governance focus toward enhancing the quality of life for permanent residents, making housing stability a foundational economic pillar.

Anticipated Economic and Fiscal Implications

Every major policy shift in a tourism-dependent economy comes with a price tag. For Bill Nine, the short-term fiscal impact is measurable, though proponents argue the long-term gain in stability outweighs the immediate cost.

Projected Reduction in County Revenue Streams. Find out more about Returning over 6000 TVR units to long term housing strategies.

The transition brought about by the new law is expected to have a measurable impact on the county’s fiscal standing through the reduction of transient occupancy tax revenue generated by the phased-out units. While some economic analyses pointed to potential losses exceeding $100 million when factoring in General Excise and TAT taxes ($65M in property tax plus $50M in others), current estimates released by the county administration focused on a potential annual revenue shortfall of approximately **sixty million dollars ($60 million)** stemming directly from the new restrictions on short-term rentals in the specified zones. This figure represents a tangible consequence of reallocating housing stock away from high-yield tourist use.

Potential Offsets to Revenue Loss

While an initial revenue loss is projected, officials noted that this figure might be partially mitigated over time. The anticipated offset is tied to the successful conversion of the vacated units into long-term residential properties, which would then be subject to property taxes assessed under residential valuation and tax structures, differing from the transient rates. The administration intends to monitor the rate at which these recovered units transition to owner-occupied or long-term rental status to gauge the actual net fiscal effect.

The Long-Term View on Fiscal Health

The proponents of Bill Nine argue that the long-term fiscal health of Maui County is inextricably linked to the availability of sufficient, stable, and affordable housing for its workforce and residents. They contend that an unstable or inaccessible housing market leads to workforce attrition, labor shortages in essential sectors, and a decline in the overall community infrastructure—ultimately posing a greater long-term economic risk than the short-term revenue adjustment. Therefore, the investment in housing stability through Bill Nine is framed as a necessary prerequisite for sustainable economic well-being.

The Inevitable Legal Challenges Ahead

The passage of Bill Nine marks the conclusion of the legislative contest, but it simultaneously signals the commencement of a new phase: the legal contestation of the law’s constitutionality. This is where the fight truly intensifies, as external interests mobilize.

Transition from Legislature to Judiciary

With the bill officially signed into law on December 15, 2025, the focus pivots from the Council Chambers and the Mayor’s office directly into the courtrooms. Extensive legal challenges are anticipated by entities representing the interests of the short-term rental owners, often citing economic harms and vested property rights.

Arguments Centered on Constitutional Taking. Find out more about Maui Bill 9 TVR phase out law overview.

The anticipated legal challenges are highly likely to center on the **Fifth Amendment of the United States Constitution**, specifically invoking the **Takings Clause**. Opponents are expected to argue that the mandatory phase-out of established, legally operating businesses and property uses amounts to an unconstitutional “taking” of private property by the government without just compensation. This will force the county to rigorously defend the regulatory nature of the legislation as a legitimate exercise of police power for public welfare, rather than a direct seizure of assets. The uncertainty of this legal front is one reason Council Member Lee expressed frustration that the companion legislation for TIG zoning was not integrated directly into Bill Nine.

The Significance of Precedent in Zoning Law

The coming legal battles will be significant not only for Maui County but potentially for other jurisdictions across Hawaiʻi and the nation grappling with similar housing pressures and the regulation of short-term accommodations. The outcome of these court proceedings will set important precedents regarding the extent to which local governments can use zoning authority to reclaim residential space from commercial, transient uses, particularly in the wake of community-declared emergencies.

Broader Housing Strategy and Next Steps

County officials are clear: Bill Nine is a powerful first step, but it is not the final word on Maui’s housing crisis.

Bill Nine as One Component of a Comprehensive Plan

The administration has consistently stressed that Bill Nine is not a singular solution but rather one vital component within a much broader, multi-pronged strategy aimed at comprehensively addressing Maui’s multifaceted housing challenges. The commitment to ongoing collaborative work with the County Council to ensure follow-through on complementary initiatives signals an understanding that legislative action alone cannot solve the deep-seated issues of housing affordability and availability.

Exploration of Homeownership Pathways and Financial Tools

In conjunction with the zoning reform, the administration has pledged to actively explore and develop additional policy tools and financial mechanisms designed to further support resident housing security. This includes initiatives focused on creating viable pathways for local families to achieve homeownership, an outcome that offers the most enduring form of housing stability. Furthermore, the exploration of supplementary tax and policy tools that align with and reinforce the overarching intent of Bill Nine will be a priority in the coming months.

Council Support for TIG Recommendations Beyond Bill Nine. Find out more about Mayor Bissen signs Maui housing legislation definition guide.

The commitment to the work of the Temporary Investigative Group extends beyond the immediate scope of the enacted bill. Councilmember Uʻu-Hodgins, chair of the TIG, indicated plans to advance the recommendation regarding the H-3 and H-4 zoning districts in separate legislation, which would provide a legal pathway for those 4,519 units to potentially remain as visitor accommodations. This suggests a sustained focus on data-driven policy adjustments to continuously enhance the local housing environment for its permanent community members.

Reflections on Progress and the Concept of Community Wealth

The passage of Bill Nine is fundamentally an ethical statement about what the island values most.

The Ethos of “People Over Profits” in Governance

The successful passage and signing of Bill Nine have been widely celebrated by supporters as a tangible manifestation of a governing philosophy centered on prioritizing the welfare of people over the maximization of profit for external investors. Council Member Keani Rawlins-Fernandez eloquently captured this sentiment, arguing that while profits are transient and replaceable, the generational communities that constitute the heart of the island are not. This ethical framework guided the proponents in their commitment to safeguarding the island’s social fabric.

The Mayor’s Vision for Restoring Societal Equilibrium

Mayor Bissen’s statements consistently framed the enactment of the law as an essential step in **”restoring balance”** to the societal structure of Maui County. This refers to re-establishing a healthy equilibrium where the needs of the local population—for shelter, community, and stability—are given precedence in public policy decisions concerning land use and housing inventory allocation. Today’s signing represents a significant move in that restorative direction.

Sustaining Community Engagement for Future Success

The commitment to involving the community, evidenced by the outpouring of testimony prior to the vote, is viewed as a necessary element to sustain the momentum generated by Bill Nine. The Mayor acknowledged that this legislative victory was a result of the democratic process being actively utilized by residents determined to shape the future of their home. This level of sustained civic engagement is crucial for navigating the expected legal challenges and ensuring the spirit of the law is maintained during implementation.

Key Takeaways and What Happens Next

For residents, property owners, and the wider community, the reality of Bill Nine settles in now.

Actionable Insights:

• For Owners of Minatoya Properties: The clock is ticking. West Maui compliance is January 1, 2029; the rest of the island is January 1, 2031. Begin exploring the four official conversion options immediately—don’t wait for the legal battles to conclude to plan your next move.
• For Housing Advocates: The focus must now shift to monitoring the *companion* legislation concerning the H-3/H-4 zoning reclassifications. The TIG’s recommendation for 4,519 units represents a potential buffer, but only if the follow-up legislation passes.
• For the Community: The Mayor praised public involvement; this engagement must not wane. Staying informed on the progress of the expected legal challenges is as important as tracking implementation timelines.

What’s Your Take? Bill Nine has finally become law, signaling a major shift in governance philosophy. Do you believe this measure strikes the right balance between necessary local housing and the tourism economy, or does the looming legal fight threaten its long-term success? Share your thoughts and insights in the comments below—let’s keep the democratic discourse alive!