STAND. COM. REP. NO. 3007

Honolulu, Hawaii

RE: S.B. No. 2378

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 S.B. No. 2378, 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 clarify insurance requirements for single-family and multi-family housing projects to obtain expedited permitting from county agencies.

Your Committee received testimony in support of this measure from the American Council of Engineering Companies of Hawaii, The Limtiaco Consulting Group, Akala Consulting LLC, Grassroot Institute of Hawaii, and seven individuals.

Your Committee received testimony in opposition to this measure from the Plumbers and Fitters UA Local 675.

Your Committee finds that Act 295, Session Laws of Hawaii 2025, inadvertently created uninsurable conditions for design professionals and engineers and contained inaccurate citations related to professional liability insurance, which may limit participation in the expedited permit process for housing development. This measure would 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:

(1) Inserting language to clarify that state or county inspectors shall inspect all projects with expedited permits;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments 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 S.B. No. 2378, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2378, S.D. 2.

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

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JARRETT KEOHOKALOLE, Chair