STAND. COM. REP. NO. 3059

Honolulu, Hawaii

RE: S.B. No. 2986

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 Judiciary, to which was referred S.B. No. 2986, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the Land Use Commission to amend, revise, or modify a decision and order granting a district boundary amendment, or fine a petitioner, upon finding that a petitioner or its successors or assigns have not adhered to the conditions imposed by the Commission, regardless of whether there has been substantial commencement of use of the land; and

(2) Define "substantial commencement".

Your Committee received testimony in support of this measure from the Land Use Commission, UNITE HERE! Local 5, and Building Industry Association of Hawaii.

Your Committee received testimony in opposition to this measure from the Land Use Research Foundation of Hawaii.

Your Committee received comments on this measure from the Office of Planning and Sustainable Development.

Your Committee finds that ensuring that approved development projects are actually being constructed in a timely manner, particularly those that could provide affordable workforce housing and needed infrastructure improvement, is a priority of the State. However, the Land Use Commission does not have sufficient enforcement flexibility required to implement necessary corrective actions or fines against petitioners found in violation of the Commission's compliance conditions. This measure will provide critical tools for the Land Use Commission to promote clarity, accountability, and regulatory certainty throughout the development process.

Your Committee has amended this measure by:

(1) Inserting an effective date of March 22, 2075, to encourage further discussion; 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 Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2986, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2986, S.D. 2.

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

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KARL RHOADS, Chair