STAND. COM. REP. NO. 681-26

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 Consumer Protection & Commerce, to which was referred H.B. No. 1721, H.D. 1, 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; Akala Consulting LLC; Housing Hawaiʻi's Future; The Limtiaco Consulting Group; Grassroot Institute of Hawaii; Gray, Hong, Nojima & Associates, Inc.; Coffman Engineers, Inc.; Maui Chamber of Commerce; and numerous individuals.

Your Committee finds that Hawaii's prolonged building permit approval process significantly hinders housing development and contributes to high costs and delays. Establishing a streamlined permitting process that shifts code compliance responsibility to licensed design professionals will reduce bureaucratic obstacles while maintaining safety and regulatory standards.

Your Committee further finds that to effectuate this streamlined process, the Legislature passed Act 295, Session Laws of Hawaii 2025 (Act 295). However, due to ambiguities in Act 295, professional liability insurance brokers believe that the Act creates uninsurance conditions, as well as inaccurate citation regarding professional liability insurance. Due to these concerns, design professionals are currently reluctant to engage in the expedited permitting process contemplated by Act 295. This measure corrects these concerns to the expedited permitting process authorized under Act 295.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1721, H.D. 1, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair