HB2040

SECTION 1. The legislature finds that long delays in the county building permit process continue in Hawaii. The Wharton Residential Land Use Regulatory Index concluded that Hawaii's regulatory environment is significantly more stringent than other surveyed communities across the nation. In particular, the average wait time for building permits in Hawaii is three times longer than the national average. According to the 2023 data submitted by the city and county of Honolulu department of planning and permitting, residential development projects take six months while commercial development projects require a year to get a permit approval.

The legislature also finds that the approval delays increase building expenses, impede the building of affordable homes for residents, and hamper economic growth of the State. As the current permitting system is ineffective in supporting needs, the legislature finds that a multi-disciplinary approach is needed to speed up the permit approval time. The purpose of this Act is to establish a building permit expeditionary improvement force to assess and remove bottlenecks in the permitting approval process.

SECTION 2. (a) There is established within the office of the governor the building permit expeditionary improvement force.

(b) The governor shall appoint a member of the public with relevant knowledge and experience in the building industry to serve as the chairperson of the task force.

(1) The director of each county planning department, or the director's designee;

(2) The executive director of the Hawaii housing finance and development corporation, or the executive director's designee;

(3) The executive director of the Hawaii Building Construction and Trades Council, or the executive director's designee;

(4) The president of the Building Industry Association of Hawaii, or the president's designee;

(5) The president of the General Contractors Association of Hawaii, or the president's designee; and

(6) The remaining task force members shall be appointed by the chair within sixty days of this Act’s effective date.

(d) The task force may consult with individuals and entities including but not limited to the following:

(1) Building permitting authorities in other states;

(2) Architects, engineers, and construction business owners engaged in the building industry; and

(3) Any other professionals recommended by the chair.

(e) The members of the task force shall serve without compensation but shall be reimbursed for their actual and necessary expenses, including consulting fees and travel expenses, incurred in carrying out their official duties.

(f) The task force shall make a comprehensive strategic plan to expedite outstanding permits and improve efficiency of the county processes. The task force may recommend for the temporary suspension of county permitting regulations to the extent necessary to streamline the permitting process subject to the applicable county mayor's approval.

(g) The task force shall submit an interim report on the status of its comprehensive strategic plan, including findings, recommendations, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2025. The task force shall submit a final report of its comprehensive strategic plan, including findings, recommendations, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

(h) The task force shall cease to exist six months after the time to obtain permit approval meets national standards.

SECTION 3. In accordance with section 9 of article VII of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriation made for this Act is necessary to serve the public interest and to meet the need addressed by this Act.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the building permit expeditionary improvement force to carry out its responsibilities outlined in section 2.

The sum appropriated shall be expended by the office of the governor for the purposes of this Act.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2040
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII