HB670

HOUSE OF REPRESENTATIVES	H.B. NO.	670
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

relating to the land use commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that delays in permitting and approvals substantially increase the time and cost required to build new housing. A study on the burden of housing regulation from the University of Hawaii Economic Research Organization indicates that the average length of approval delay in Hawaii is three times the national mean, leading to uncertainty and expense that disincentivizes development.

According to research from the Grassroot Institute of Hawaii, the time required to navigate the approval process for new housing developments can take as long as ten years. This can considerably increase the cost associated with building new homes. In September 2012, the median home price on Oahu was $637,000. Ten years later, in September 2022, the median home price skyrocketed to $1,100,000.

Under existing law, six out of the nine members of the land use commission must affirmatively vote to approve any boundary amendment. In addition, the land use commission is required to hold a hearing within not less than sixty and not more than one hundred eighty days.

The legislature further finds that adjusting the laws governing the land use commission approval process will expedite the development process and help address the State's excessive permit and approval times.

Therefore, the purpose of this Act is to reform the decision-making process of the land use commission.

SECTION 2. Section 205-1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be a state land use commission, hereinafter called the commission. The commission shall consist of nine members who shall hold no other public office and shall be appointed in the manner and serve for the term set forth in section 26-34. One member shall be appointed from each of the counties and the remainder shall be appointed at large; provided that one member shall have substantial experience or expertise in traditional Hawaiian land usage and knowledge of cultural land practices. The commission shall elect its chairperson from one of its members. The members shall receive no compensation for their services on the commission, but shall be reimbursed for actual expenses incurred in the performance of their duties. [~~Six~~] A simple majority of affirmative votes shall be necessary for any boundary amendment."

SECTION 3. Section 205-4, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) Upon proper filing of a petition pursuant to subsection (a) the commission shall, within [~~not less than sixty and not more than one hundred and eighty~~] one hundred twenty days, conduct a hearing on the appropriate island in accordance with the provisions of sections 91-9, 91-10, 91-11, 91-12, and 91-13, as applicable."

2. By amending subsection (g) to read:

"(g) Within [~~a period of not more than three hundred sixty-five~~] one hundred eighty days after the proper filing of a petition, unless otherwise ordered by a court, or unless a time extension, which shall not exceed ninety days, is established by a two-thirds vote of the members of the commission, the commission, by filing findings of fact and conclusions of law, shall act to approve the petition, deny the petition, or to modify the petition by imposing conditions necessary to uphold the intent and spirit of this chapter or the policies and criteria established pursuant to section 205-17 or to assure substantial compliance with representations made by the petitioner in seeking a boundary change. The commission may provide by condition that absent substantial commencement of use of the land in accordance with such representations, the commission shall issue and serve upon the party bound by the condition an order to show cause why the property should not revert to its former land use classification or be changed to a more appropriate classification. Such conditions, if any, shall run with the land and be recorded in the bureau of conveyances."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________