STAND. COM. REP. NO. 2981

Honolulu, Hawaii

RE: S.B. No. 2981

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. 2981 entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Beginning July 1, 2027, prohibit minimum off-street parking requirements for any new development in an urban district; and

(2) Require each county to amend or repeal any charter provision, ordinance, code, standard, or administrative procedure that imposes a minimum off-street parking requirement by July 1, 2027.

Your Committee received testimony in support of this measure from the Office of Planning and Sustainability, Oahu Metropolitan Planning Organization, Hawaii Climate Change Mitigation and Adaptation Commission, Hawaiʻi Association of REALTORS, Ulupono Initiative, Chamber of Commerce Hawaii, Hawaiʻi Appleseed Center for Law and Economic Justice, Hawaiʻi YIMBY, AARP Hawaiʻi, Housing Hawaiʻi's Future, Grassroot Institute of Hawaii, Holumua Collaborative, Building Industry Association of Hawaii, two members of the Kauaʻi County Council, and two individuals.

Your Committee received comments on this measure from the Department of Planning and Permitting of the City and County of Honolulu and UNITE HERE! Local 5.

Your Committee finds that mandatory parking minimums drive up development costs which in turn drives up housing costs. Furthermore, these requirements are often determined arbitrarily and applied uniformly without consideration for context, actual demand, or community input. Providing flexibility to developers and communities to determine parking needs on a case-by-case basis would better reflect real demand for parking. This measure will increase the availability of affordable housing and remove financial, infrastructure, and land barriers in transit-oriented development areas.

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. 2981 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