The panel is a problem-solving approach to understanding why people offend - then helping them get on the straight and narrow.
Mr Kemp told around 65 attendees at the first meeting that it was about community, simplicity and trust.
"There's trust among the panel, trust from the victim they're going to have their needs satisfied, trust in the offender they're going to co-operate and trust from the offender they will be treated in a fair and appropriate manner," he said.
There were no set qualifications required, other than that people on the panel should already have some kind of role in their community.
Panels would be made up of people from the community where the offender lived.
Maureen Jehly said she was interested to hear how the panels would work.
"I'm very interested in social justice in all its forms," she said.
"I think this is a valuable initiative, especially for dispossessed people."
Maori Wardens consultant Ruka Hughes said he thought the panels could make a difference.
"I came to listen to see if it will make a difference to the community and I think it will," he said.
The next stage is to form a steering committee and devise operation guidelines pertinent to Rotorua.
"There's clearly a recognition that this would be good to adapt to Rotorua's needs," said Community Law Centre manager Ellie Herbert.