STAND. COM. REP. NO. 3229

Honolulu, Hawaii

RE: H.B. No. 1964

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Public Safety and Military Affairs and Energy and Intergovernmental Affairs, to which was referred H.B. No. 1964, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE BUILDING CODE COUNCIL,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Implement certain recommendations of the Simplifying Permitting for Enhanced Economic Development Task Force;

(2) Require the State Building Code Council to provide annual training to state and county permitting agency employees; and

(3) Appropriate funds for the training, subject to a matching requirement from the counties.

Your Committees received testimony in support of this measure from the Office of Planning and Sustainable Development, Small Business Regulatory Review Board, American Institute of Architects Hawaii, Maui Chamber of Commerce, Chamber of Commerce Hawaii, Land Use Research Foundation, and Hawaiʻi Island Chamber of Commerce.

Your Committees find that accelerating the permitting process is a foundational component of the State's housing initiatives. Without more efficient permitting and regulatory processes, the State will continue to experience insufficient housing production to meet current and future demand. Your Committees further find that professional development and specialized training for permitting staff are essential tools for accelerating permitting processes, which will allow for increased housing production statewide. By requiring the State Building Code Council to provide annual training to state and county permitting agency employees, this measure takes a critical step toward more efficient regulatory processes and expanded housing production.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2055, to encourage further discussion; and

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

Your Committees note that, while this measure makes important contributions to permitting efficiency, it does not fully address existing problems. Specifically, the State Building Code Council has faced significant challenges in recent years, including periods in which it has not met regularly or promulgated code updates due to a lack of dedicated staff. To address this issue, the Supplemental Appropriations Act of 2026 contains an appropriation for two full-time equivalent (2.0 FTE) positions and other expenses for the State Building Code Council. Without additional funds, the effects of this measure may be limited. However, your Committees also note the potentially high costs of establishing additional positions to provide permitting training. Your Committees find that these issues raise concerns that merit further consideration and respectfully request further examination by your Committee on Ways and Means, should it choose to deliberate on this measure.

As affirmed by the records of votes of the members of your Committees on Public Safety and Military Affairs and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1964, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1964, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Public Safety and Military Affairs and Energy and Intergovernmental Affairs,

________________________________ GLENN WAKAI, Chair

________________________________ CAROL FUKUNAGA, Chair