HB1721

HOUSE OF REPRESENTATIVES	H.B. NO.	1721
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

relating to housing.

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

SECTION 1. The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single‑family and multi‑family residential projects. However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insured requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

Accordingly, the purpose of this Act is to clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

SECTION 2. Section 46-90, Hawaii Revised Statutes, is amended by amending subsection as follows:

1. By amending subsection (b) to read:

"(b) An applicant or the applicant's agent may submit a 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. The request by the applicant or the applicant's agent shall include:

(1) A full and complete set of plans;

(2) Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

(3) The following information from all licensed professionals on record:

(A) Policies of insurance that:

(i) Name the State and county as additional insurers[;] for general liability insurance;

(ii) Are in amounts equivalent to at least $2,000,000; and

(iii) Specifically allow coverage for the completed project for the period under section 657-8; and

(B) A statement that indemnifies and holds harmless the State, its officers, agents, and employees and the county, its officers, agents, and employees[;] from and against claims, damages, losses, and expenses, including attorney's fees, arising out of or resulting from the negligent acts, errors, or omissions of the licensed professional;

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

(5) The required county contractor's statement."

2. By amending subsection (f) to read:

"(f) Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county. The] county shall issue [~~the~~] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2026, and shall be repealed on June 30, 2031.

INTRODUCED BY:	_____________________________