STAND. COM. REP. NO. 2523

Honolulu, Hawaii

RE: S.B. No. 3035

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 Water, Land, Culture and the Arts, to which was referred S.B. No. 3035 entitled:

"A BILL FOR AN ACT RELATING TO REAL ESTATE TRANSACTIONS,"

begs leave to report as follows:

The purpose and intent of this measure is to require a seller of real property adjacent to the shoreline and the seller's agent to disclose and include in all advertisements certain shoreline erosion issues related to the parcel.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Surfrider Foundation Hawaiʻi Region, and three individuals.

Your Committee received comments on this measure from Hawaiʻi Association of REALTORS.

Your Committee finds that the vulnerability of coastal properties due to erosion and flooding from seasonal waves and storms is increasing with sea level rise. Therefore, your Committee believes that buyers of coastal property should understand the hazards and risks they are assuming in purchasing oceanfront property. This measure will better inform the decision-making by buyers of coastal properties in real estate transactions by increasing transparency.

Your Committee has amended this measure by inserting language that allows for the required disclosure to be accessible via a website link that includes the words, "This property has an erosion disclosure".

As affirmed by the record of votes of the members of your Committee on Water, Land, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3035, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3035, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Culture and the Arts,

________________________________

CHRIS LEE, Chair