STAND. COM. REP. NO. 110-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1721

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Housing, to which was referred H.B. No. 1721 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to clarify insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

Your Committee received testimony in support of this measure from the American Council of Engineering Companies of Hawaii; Grassroot Institute of Hawaii; and three individuals.

Your Committee finds that Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for certain residential projects to help alleviate the permitting backlog throughout the State. However, ambiguities within Act 295 regarding additional insured requirements, indemnification language, and certification obligations have created uncertainty for architects and engineers about whether participating in the expedited permitting process could expose them to liabilities their insurance policies do not cover. Your Committee further finds that these concerns have deterred design professionals from using the expedited permit pathway, thereby slowing housing production at a time when the State urgently needs more homes. This measure resolves the ambiguities created by Act 295, which will enable more professionals to confidently participate in the expedited process.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1721, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1721, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Housing,

____________________________

LUKE A. EVSLIN, Chair