STAND. COM. REP. NO. 2983

Honolulu, Hawaii

RE: S.B. No. 2423

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 Judiciary, to which was referred S.B. No. 2423, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ZONING,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Prohibit the counties from imposing certain lot requirements on lots zoned for housing on parcels of land located within the urban district for purposes of subdivision, development, or the issuance of a building permit, with certain exemptions; and

(2) Allow the counties to establish a petition process for neighborhoods, subdivisions, or other geographically contiguous areas to establish or retain certain requirements or specifications.

Your Committee received testimony in support of this measure from the Hawaii Appleseed Center for Law & Economic Justice, Maui Chamber of Commerce, AARP Hawaiʻi, Hawaiʻi YIMBY, Grassroot Institute of Hawaii, and two individuals.

Your Committee received testimony in opposition to this measure from one member of the Honolulu City Council, Hawaii's Thousand Friends, HI Good Neighbor, and two individuals.

Your Committee finds that minimum lot sizes and other requirements or specifications in urban areas contribute to higher housing costs by restricting the number and diversity of homes that can be built. Your Committee further finds that reducing minimum lot sizes in the right locations supports denser, more affordable housing near jobs and transit, lowers transportation-related emissions, and strengthens "social resilience" by fostering more connected walkable communities. By prohibiting the imposition of certain lot requirements on lots zoned for housing, this measure lowers unnecessary regulatory barriers in urban areas, encourages modest and attainable housing options, preserves critical health and environmental protections, and honors community participation.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2423, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

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KARL RHOADS, Chair