Kauai County Council Committee Meeting – March 18, 2026

This meeting encompassed three separate committee sessions: the Parks and Recreation Transportation Committee, the Planning Committee, and the Finance and Economic Development Committee. The primary discussions centered on Bill 2984, which amends shoreline setback and coastal protection regulations, and Bill 2981, which grants the Director of Finance explicit inspection and examination powers over real property for tax purposes. Both bills were advanced to the full council.

Consent Calendar

• Parks and Recreation Transportation Committee: Approved the minutes of the March 4, 2026 meeting. Motion carried unanimously.
• Finance and Economic Development Committee: Approved the minutes of the March 4, 2026 meeting. Motion carried unanimously.

Public Comments & Testimony

• Bill 2984 (Shoreline Setback):
  • An unidentified testifier urged the council to pressure state legislators (Senator Kochy, Representative Nadine, Luke) to compel DLNR to conduct a statewide shoreline setback map, criticizing decades of state inaction. The testifier expressed strong support for the bill.
  • Makaala Kalmawana (Huiho Umaluika) testified in support, emphasizing the cultural importance of protecting public beach access and the need for certified shorelines to address vegetation encroachment. She noted that the bill aligns with traditional Hawaiian practices of not building directly on the shoreline.
  • Presley Wan (fisherman, former burial council member) testified in full support, stating that 71% of Kauai’s beaches are eroding and that the bill addresses his concerns as a fisherman and advocate for community-based subsistence fishing.
• Bill 2981 (Real Property Tax Inspection):
  • Lani Cycos (resident) testified in opposition, arguing that the bill grants excessive power to an appointed official, lacks clear guardrails on retroactivity, and could lead to legal challenges. He cited the Maui vacation rental controversy as a cautionary example and expressed concern that the retroactivity period is undefined.

Discussion Items

• Bill 2984 – Shoreline Setback and Coastal Protection Amendment:
  • Planning Director Kinehall and Planner Alicia Summers presented the bill, which tightens repair definitions, requires certified shoreline surveys for repairs over $125,000, reduces the minimum buildable footprint from 1,000 to 500 square feet for rebuilds in the setback, and introduces retreat agreements for properties threatened by sea level rise.
  • Councilmember Cowden raised concerns about homeowners on rocky cliffs (e.g., Kalapaki) who might face mortgage calls if their homes cannot be rebuilt after a fire or disaster. The planning director and staff clarified that each property is evaluated individually, and the existing variance process (Section 8-27.3) allows the director to exempt properties that pose no hazard. Councilmember Godin sought and received confirmation that the discretion provision could protect such properties.
  • Resource person Karen Diamond (longtime advocate) explained that the $125,000 repair threshold triggers a certified shoreline survey, which is essential for demarcating public beach boundaries. She argued that the current practice of using Google Maps and vegetation lines has led to widespread encroachment and public access loss. She also noted that the 50% substantial improvement rule aligns with federal flood laws.
  • Councilmembers Carvalho and Holland expressed strong support, citing site visits that revealed vegetation overgrowth and public access issues. Councilmember Godin noted that the bill would help curb excessive rebuilds that have priced out longtime residents.
• Bill 2981 – Real Property Tax Inspection Powers:
  • Randon Valenciano (real property assessment) explained the current inspection process: field staff drive by properties, use permit data, and conduct on-site inspections when needed. The bill codifies the director’s authority to inspect, examine, and promulgate rules with retroactive effect (limited to one to two years per case law).
  • Councilmember Cowden questioned the vagueness of retroactivity language and the potential for unintended consequences, such as homeowners losing their owner-occupant tax cap due to a medical house trade or a mistaken inspection finding. She proposed quarterly reporting on settlements and compromises, but did not offer an amendment to this bill. County Attorney Tyler Seidel clarified that retroactive rules must be reasonable and that any rulemaking would go through public hearings.
  • Councilmember Carvalho supported the bill, noting that other counties have similar authority and that physical inspections are preferable to drone or AI surveillance. He argued that the bill helps ensure fair taxation and prevents wealthy landowners from evading taxes.
  • Councilmember Cowden moved to defer the bill to allow time to integrate amendments, but the motion was not seconded. The bill proceeded to a vote.

Key Outcomes

• Bill 2984 (Shoreline Setback): Passed unanimously out of the Planning Committee (roll call: Carvalho – aye, Cowden – aye, Kulii – aye, Bonusan – aye). No amendments were offered. The bill will proceed to the full council for final reading, with the planning director to be available if amendments arise.
• Bill 2981 (Real Property Tax Inspection): Passed out of the Finance and Economic Development Committee with a vote of 5–1 (roll call: Bolasan – aye, Carvalho – aye, Cowden – no, Holland – aye, Raposo – aye, Coole – aye). The bill will move to the full council. Councilmember Cowden indicated she plans to introduce a separate bill to add guardrails on settlements and compromises.