September 25, 2024
HONOLULU – Attorney General Anne Lopez has commended the Hawaiʻi Supreme Court's unanimous decision in Rosehill v. State of Hawaiʻi, Land Use Commission. The court ruled that farm dwellings in agricultural districts cannot be used as short-term vacation rentals under Hawaiʻi law. Additionally, the court emphasized that agencies should generally be deferred to when interpreting ambiguous laws, contrasting with a recent U.S. Supreme Court case.
The County of Hawaiʻi has an ordinance prohibiting short-term vacation rentals in agricultural districts. In 2020, both the County and certain landowners petitioned the state Land Use Commission (LUC) for declaratory orders on this prohibition's legality under state law. The LUC determined that short-term vacation rentals are not permitted uses of farm dwellings in agricultural districts.
Upon appeal, the Hawaiʻi Supreme Court upheld the LUC's decision, stating that using farm dwellings for short-term vacation rentals undermines agricultural purposes. The court deferred to the LUC’s interpretation of ambiguous state laws: “In Hawaiʻi, we defer to those agencies with the naʻauao (knowledge/wisdom) on particular subject matters to get complex issues right.” This stance directly opposed the reasoning of a 2024 U.S. Supreme Court decision which overruled longstanding principles of federal judicial deference to agency interpretations.
State leaders expressed their support for the ruling.
“Using agricultural lands for genuine agricultural purposes and ensuring that housing is allocated for our residents are two of the most crucial issues facing our state today,” said Governor Josh Green, M.D. “I commend that Hawaiʻi Supreme Court for making the right decision for the people of Hawaiʻi.”
Attorney General Lopez added: “Today’s decision makes clear that deference to administrative agencies is a principle with continued vitality in Hawaiʻi. This decision reaffirms the importance of agency expertise under Hawaiʻi law.”
Special Deputy Attorney General Doug Chin also praised the ruling: “This was a win for preserving agricultural lands in Hawaiʻi. Short-term vacation rentals are transient accommodations effectively for vacation or tourist use and do not belong in the agricultural district.” Chin argued before the court on behalf of Starn O’Toole Marcus & Fisher and noted that “The Hawaiʻi Supreme Court unanimously upheld the LUC’s thoughtful and well-reasoned decision.”