HB2606

SECTION 1. The legislature finds that the Simplifying Permitting for Enhanced Economic Development (SPEED) task force was established pursuant to Act 133, Session Laws of Hawaii 2025. The SPEED task force brought together various state and county agencies and stakeholders to address issues related to obtaining permits for housing, infrastructure, and other projects. The legislature further finds that the SPEED task force is responsible for identifying actions taken, challenges encountered, and legislative measures needed to facilitate, expedite, and coordinate state and intergovernmental permitting processes.

In its initial phase, the SPEED task force split into three permitted interaction groups, each focused on a specific, high-impact segment of the permitting system. The SPEED task force then submitted to the legislature a December 2025 final report of the permitted interaction groups, representing a combined report of the three permitted interaction groups, which outlined findings regarding existing actions and persistent challenges and presented initial recommendations for legislative and administrative measures to improve permitting processes statewide.

The December 2025 final report also identified various recommendations for improving housing and infrastructure development in the State. One key recommendation involves off-site construction, which the final report identifies as having the potential to reduce plan-review workloads through the use of standardized designs and state-level certification. Currently, counties expend substantial resources reviewing manufacturer documentation and verifying that off-site or imported building components comply with state building codes, which results in duplicative technical reviews across the counties. The final report recommends that a state-administered certification and inspection program for off-site construction be developed as part of the State's broader housing and infrastructure strategy.

Accordingly, the purpose of this Act is to establish and appropriate funds for a working group within the state building code council to develop proposals for an off-site construction program.

SECTION 2. (a) There is established within the state building code council an off-site construction working group to develop proposals for an off-site construction program.

(b) The off-site construction program shall:

(1) Be limited to off-site construction components and designs for single-family homes less than one thousand two hundred square feet;

(2) Centralize manufacturer certification and product quality assurance;

(3) Curate a library of pre-approved components and designs;

(4) Define clear regulations for use and inspection;

(5) Establish a process in which a state-level entity would certify factories and standardized models for compliance with state building codes and local conditions, while county agencies would be responsible for site-specific review related to foundations, utilities, installation, and hazard exposure;

(6) Develop pre-approved plan sets for common housing types, such as small multi-unit and single-family infill development;

(7) Include funding to support the off-site construction labor force in the State;

(8) Include policies to strengthen construction-material supply chains and reduce dependence on import pathways; and

(9) Be explicitly integrated with zoning, wastewater, and infrastructure planning so that modular units are directed to sites that can support them.

(1) The chair of the state building code council, or the chair's designee, who shall serve as chair;

(2) The director of the office of planning and sustainable development, or the director's designee;

(3) One member of the senate, to be appointed by the president of the senate; and

(4) One member of the house of representatives, to be appointed by the speaker of the house of representatives.

(d) The chair of the working group shall invite the following individuals to serve as members of the working group:

(1) Six county building code officials, or their designees, as designated by the chair;

(2) Two representatives with architectural experience;

(3) Two representatives with engineering experience;

(4) Five representatives from labor organizations;

(5) Three representatives from consumer advocacy organizations;

(6) Two representatives from non-profit organizations focused on housing;

(7) Three representatives from the financial services industry; and

(8) Community stakeholders as designated by the chair.

(e) The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

(f) The working group shall be dissolved on June 30, 2027.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the off-site construction working group.

The sum appropriated shall be expended by the state building code council for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2026.

INTRODUCED BY:

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HOUSE OF REPRESENTATIVES	H.B. NO.	2606
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII