CCR78

CONFERENCE COMMITTEE REP. NO. 78

Honolulu, Hawaii

, 2025

RE: S.B. No. 66

S.D. 2

H.D. 3

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 66, S.D. 2, H.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Require permits to be issued by applicable permitting agencies within sixty days of a complete application being filed for single-family and multi-family housing projects if certain conditions are satisfied;

(2) Automatically deem approved a permit that is either not otherwise approved by the applicable permitting agency within sixty days or for which the applicant has agreed to all corrections, changes, or recommendations to the plans and specifications made by the applicable permitting agency;

(3) Pause the sixty-day permit review period under certain circumstances; and

(4) Sunset June 30, 2030.

Your Committee on Conference finds that the State is experiencing a chronic housing shortage that is far outpaced by demand. Presently, county permitting agencies statewide are experiencing significant delays with the approval process, which can increase development costs and postpone the timeline for construction. By establishing an optional expedited permit approval process for single-family and multi-family homes, the State can expeditiously develop housing units that address the ongoing housing shortage while ensuring housing units remain affordable. Therefore, this measure streamlines the permitting process for certain residential housing developments while providing additional housing units for Hawaii's working individuals and families.

Your Committee on Conference has amended this measure by:

(1) Clarifying that permit applications for single-family and multi-family housing projects in each county shall be eligible for an expedited permit approval, rather than requiring permits to be issued within a certain period;

(2) Inserting language that:

(A) Authorizes an applicant or an applicant's agent to submit an optional request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county;

(B) Requires the optional request to include:

(i) A full and complete set of plans;

(ii) Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available;

(iii) Information regarding policies of insurance from all licensed professionals on record specifying certain coverage requirements naming the State and county as insureds, and indemnifying both;

(iv) A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

(v) The required county contractor's statement;

(D) Limits eligible projects to those not higher than thirty feet and projects that are not situated on a shoreline parcel or a parcel that is impacted by waves, storm waves, high tide, or other shoreline erosion and requires projects to be in compliance with chapter 205A, Hawaii Revised Statutes;

(E) Requires all plans and specifications submitted to a county to have been stamped by a duly licensed structural, civil, electrical, or mechanical engineer and licensed professional, certifying compliance with the applicable building codes for the respective counties;

(F) Requires any other administrative criteria that the county deems necessary;

(G) If the county determines that the application is not complete, requires each county to notify the applicant and specify the information needed to meet requirements to complete submittal;

(H) Clarifies that, for owner-builder exemptions, the owner shall execute a waiver of all claims against the State and county and execute a statement that indemnifies the State, its officers, agents, and employees and the county, its officers, and agents;

(I) Provides that, for certain building permits that apply for and meet the criteria for an expedited permit, the county shall execute an agreement with the licensed professional on record as assuming approval and oversight responsibility for the permit application, and shall consider the application approved upon approval of the agreement;

(J) Requires the licensed professional on record or county to ensure that the project construction is in compliance with the approved plans under the expedited permit, under certain conditions; and

(K) Requires the licensed professional to certify in writing to the county that a certificate of occupancy is warranted upon completion of construction;

(3) Clarifying that each county may adopt administrative rules pursuant to chapter 91, Hawaii Revised Statutes, to define the sixty-day period, and charge any necessary fees to effectuate the expedited permit approval process;

(4) Clarifying that the issuance of a certificate of occupancy shall not be construed to limit or repeal any powers of any county to enforce violations of any law, ordinance, or rule;

(5) Amending section 1 to reflect its amended purpose;

(6) Changing its effective date to July 1, 2026;

(7) Inserting a sunset date of June 30, 2031; and

(8) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 66, S.D. 2, H.D. 3, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 66, S.D. 2, H.D. 3, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ LUKE A. EVSLIN Co-Chair		____________________________ STANLEY CHANG Chair
____________________________ RACHELE LAMOSAO Co-Chair		____________________________ MIKE GABBARD Co-Chair
____________________________ DAVID A. TARNAS Co-Chair