STAND. COM. REP. NO. 2792

Honolulu, Hawaii

RE: S.B. No. 2398

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. 2398, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RESIDENTIAL HOUSING UTILITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to require county boards of water supply to publicly disclose general information of service connection availability for residential permitting and construction through their websites.

Your Committee received testimony in support of this measure from Avalon Development LLC, Hawaii Appleseed Center for Law and Economic Justice, and Hawaiʻi YIMBY.

Your Committee received testimony in opposition to this measure from the Honolulu Board of Water Supply and one individual.

Your Committee finds that reliable access to water is fundamental for residential housing development. However, there can be occurrences in the State where projects advance through the planning and early permitting stages then encounter previously undisclosed water infrastructure limitations that can delay or halt housing development. This measure would support the development of housing in the State by providing certainty for housing developers to ensure they are able to focus resources on viable housing projects.

Your Committee has amended this measure by:

(1) Inserting language to require county boards of water supply to include in disclosures their present inventory of certain developer-funded improvements; and

(2) 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. 2398, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2398, 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