STAND. COM. REP. NO. 3793

Honolulu, Hawaii

RE: H.B. No. 1823

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1823, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE COASTAL ZONE MANAGEMENT ACT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the definition of "development", as it pertains to coastal zone management, to exclude any state- or county-funded infrastructure improvement project that is exempted from an environmental assessment or determined as a finding of no significant impact under chapter 343, Hawaii Revised Statutes; and

(2) Apply the exemption only to zones established in Lahaina in the aftermath of the 2023 Maui wildfires that have been designated for reentry by the State or County of Maui as of January 1, 2026.

Your Committee received testimony in support of this measure from the Department of Transportation, Office of Planning and Sustainable Development, one member of the Maui County Council, Avalon Development Company, Maui Chamber of Commerce, and Grassroot Institute of Hawaii.

Your Committee received comments on this measure from the Department of the Attorney General, Office of the Mayor of the County of Maui, Sierra Club of Hawaiʻi, and one individual.

Your Committee finds that timely infrastructure restoration is foundational to rebuilding homes, businesses, and communities. This measure will exempt publicly funded infrastructure, including road, wastewater, and drainage projects, to streamline the delivery of essential public infrastructure and facilitate redevelopment in certain zones established in Lahaina.

Your Committee acknowledges the concern raised by the Department of the Attorney General and Office of Planning and Sustainable Development that this measure, in its current form, may be subject to challenge as special legislation. Thus, amendments to this measure are necessary to address this concern.

Your Committee has amended this measure by:

(1) Specifying that the exemption from special management area use permit requirements shall exclude lands owned by or under the control of the State or the County of Maui;

(2) Amending section 1 to reflect its amended purpose; and

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

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1823, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1823, H.D. 2, S.D. 2.

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

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KARL RHOADS, Chair