STAND. COM. REP. NO. 3232

Honolulu, Hawaii

RE: H.B. No. 2606

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 Committee on Public Safety and Military Affairs, to which was referred H.B. No. 2606, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO OFF-SITE CONSTRUCTION,"

begs 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) Establish a working group within the State Building Code Council to develop proposals for an off-site construction program; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands; Office of Planning and Sustainable Development; Office of Hawaiian Affairs; Small Business Regulatory Review Board; Plumbers and Fitters, UA Local 675; International Brotherhood of Electrical Workers, Local Union 1186; Housing Hawaiʻi's Future; and two individuals.

Your Committee received comments on this measure from the American Institute of Architects Hawaii.

Your Committee finds that the Simplifying Permitting for Enhanced Economic Development Task Force's dedicated and collaborative efforts have successfully identified innovative solutions to streamline development and remove systemic barriers that hinder growth of the State's housing inventory. A key result of the Task Force's work was recognition that off-site construction can serve as a critical tool to address the State's ongoing housing shortage. By leveraging modular and prefabricated construction methods, the State can significantly reduce build times and lower costs. However, further development of specific proposals and regulatory frameworks is necessary for a successful off-site construction program. This measure provides a necessary first step toward that goal by establishing the Off-Site Construction Working Group within the State Building Code Council.

Your Committee has amended this measure by inserting an effective date of July 1, 2055, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Public Safety and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2606, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2606, 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 Committee on Public Safety and Military Affairs,

________________________________

CAROL FUKUNAGA, Chair