STAND. COM. REP. NO. 1197-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1738

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1738, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LAND USE DECISION-MAKING,"

begs leave to report as follows:

The purpose of this measure is to authorize the county land use decision-making authorities, instead of the Land Use Commission, to amend district boundaries involving land areas of greater than fifteen but no more than twenty-five acres for purposes of residential housing, agricultural workforce housing, long‑term rental, or workforce fee simple ownership.

Your Committee received testimony in support of this measure from the Office of Planning and Sustainable Development; Hawaiʻi Association of REALTORS; Grassroot Institute of Hawaii; Housing Hawaiʻi's Future; Maui Chamber of Commerce; Hawaiʻi Farmers Union United; Hawaiʻi Food+ Policy; and numerous individuals. Your Committee received testimony in opposition to this measure from the Shimanchu Wai Protectors; Kūpuna for the Moʻopuna; Kauai Climate Action Coalition; Hawaii's Thousand Friends; Sierra Club of Hawaiʻi; and numerous individuals. Your Committee received comments on this measure from the Department of Agriculture and Biosecurity; Land Use Commission; Hawaiʻi Farm Bureau; and Land Use Research Foundation of Hawaii.

Your Committee finds that the Land Use Commission's review process for district boundary amendments can be lengthy and complicated, which can significantly delay even modest housing developments, and often duplicates work done by county councils, zoning boards, and planning departments. When a proposed project already complies with county plans and ordinances, redundant state-level review can undermine local authority without significantly advancing the public interest. This measure expands the counties' authority to approve small-scale residential boundary amendments, which will help streamline the approval process for new housing developments, while reducing the burden on the Land Use Commission.

Your Committee has amended this measure by:

(1) Clarifying that the district boundary amendment process under this measure applies to affordable residential housing projects, rather than just residential housing projects;

(2) Deleting class  C from the list of eligible soil classifications, thereby limiting eligibility to project areas with Land Study Bureau overall (master) productivity ratings of class  D,  E, or  U;

(3) Deleting the reference to the county general plan in the provision authorizing the appropriate county land use decision‑making authority to consolidate proceedings to amend state land use district boundaries with related county proceedings; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1738, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1738, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair