STAND. COM. REP. NO. 2928

Honolulu, Hawaii

RE: S.B. No. 3035

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Judiciary, to which was referred S.B. No. 3035, S.D. 1, entitled:

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

beg 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 Committees received testimony in support of this measure from the Department of Land and Natural Resources, Hawaiʻi Reef and Ocean Coalition, Surfrider Foundation Hawaiʻi Region, Maui Nui Resiliency Hui, and two individuals.

Your Committees received testimony in opposition to this measure from the Hawaiʻi Association of REALTORS.

Your Committees find that rising sea levels have made coastal properties more vulnerable to erosion and flooding from seasonal waves and storms. This measure would improve transparency by enabling purchasers to understand the hazards and risks they are assuming in purchasing oceanfront property in the State.

Your Committees have amended this measure by:

(1) Clarifying that a seller and the seller's agent shall disclose all reasonably known erosion control structures; and

(2) Inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3035, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 3035, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ JARRETT KEOHOKALOLE, Chair