STAND. COM. REP. NO. 3715

Honolulu, Hawaii

RE: H.B. No. 1721

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 Commerce and Consumer Protection, to which was referred H.B. No. 1721, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify insurance, indemnification, and certain certificate of occupancy requirements for the purposes of expedited permits for certain housing projects; and

(2) Require state or county inspectors to inspect all projects with expedited permits.

Your Committee received testimony in support of this measure from Housing Hawaiʻi's Future, Plumbers and Fitters UA Local 675, Akala Consulting LLC, Grassroot Institute of Hawaii, Maui Chamber of Commerce, and three individuals.

Your Committee finds that Act 295, Session Laws of Hawaii 2025 (Act 295), created a pathway for expedited permitting for single-family and multi-family housing projects, in an effort to streamline what have been some of the longest permitting times in the country. Your Committee further finds that certain provisions established in Act 295 unintentionally created uninsurable conditions for design professionals and engineers. This measure would provide clarity and specify expectations related to insurance and indemnification to ensure design professionals and engineering firms in the State, particularly small businesses, are able to meet insurance requirements to support expedited permitting.

Your Committee has amended this measure by 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 Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1721, 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. 1721, H.D. 2, S.D. 2.

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

________________________________

JARRETT KEOHOKALOLE, Chair