HB1405 HD1

SECTION 1. The legislature finds that certain land or water use activities or construction projects may require permits issued by agencies and authorities through the facilitated application process, which is overseen by the department of business, economic development, and tourism.

The legislature further finds that the facilitated application process to obtain a permit can be cumbersome and subject applicants to lengthy waiting periods. The legislature additionally finds that a backlog in applications can lead to delays in housing, industrial, and commercial projects, stifling economic development in the State.

Accordingly, the purpose of this Act is to establish specific deadlines within the facilitated application process and require the department of business, economic development, and tourism to establish certain resources and processes to help streamline permit applications.

SECTION 2. Section 201-62, Hawaii Revised Statutes, is amended to read as follows:

"§201-62 Facilitated application process. (a) State agencies are required, and county agencies are authorized and encouraged, to participate in the facilitated application process set forth herein.

(b) The department shall serve as the lead agency for the facilitated application procedure and shall be the lead agency to administer the facilitated application procedure for any project that requires both county permit applications and state agency approval.

(1) An applicant for at least two [~~or more~~] state permits, or at least one state and one county permit, may apply in writing to the department requesting a facilitated application process for the consideration of the application. The written request shall include sufficient data about the proposed project for the department to determine which other agencies or authorities may have jurisdiction;

(2) [~~Upon receiving~~] Within ten days of approving a written request for the facilitated application process, the department shall notify all federal, state, and county agencies or authorities that the department determines may have jurisdiction over part or all of the proposed project, and require those state agencies or authorities and invite those county and federal agencies or authorities to participate in the facilitated application process;

(3) The applicant and each agency or authority required or agreeing to participate in the facilitated application process shall designate a representative to serve on the facilitated application review team;

(4) Any state agency or authority designated by the department as a party to an application review that is not able to participate, shall submit an explanation, in writing, to the department as to the reasons and circumstances for noncompliance;

(5) The representatives of the agencies, authorities, and the applicant may develop and sign a joint agreement among themselves identifying the members of the facilitated application review team, specifying the regulatory and review responsibilities of each government agency and setting forth the responsibilities of the applicant, and establishing a timetable for regulatory review, the conduct of necessary hearings, preparation of an environmental impact statement if necessary, and other actions required to minimize duplication and coordinate the activities of the applicant, agencies, and authorities;

(6) [~~Each~~] Within ten days of receiving notification from the department, each agency or authority shall submit an estimated timeline for permit issuance or approval and issue its own permit or approval based upon this timeline and its own jurisdiction[.]; provided that the department may adjust this deadline based on the complexity of the project. The facilitated application process shall not affect or invalidate the jurisdiction or authority of any agency under existing law; and

(7) The applicant shall apply directly to each federal or county agency that does not participate in the facilitated application process.

(d) If a state regulatory permit is necessary to obtain a county permit, then a county agreeing to participate in the facilitated application process may advise the applicant of the facilitated application procedure. To apply for the facilitated application procedure, applicants for county permits involving state permit approvals shall submit a form, which shall be issued by the department; provided that this procedure shall apply only to state permits that need to be approved by a state agency following a review of the plans and certifications submitted by the applicant. State permits that are approved by rule require only that the licensed design professional certify that the plans and specifications are in compliance with state rules. No review by a state agency is required for state approval. Plans and specifications requiring state agency review shall be submitted with the facilitated application procedure to the appropriate state agency, with a copy to the department. If a state permit is approved by rule, then the participating county shall provide a set of drawings and specifications submitted by the applicant to the state agency that developed the rules.

In developing the procedures for approval by rule and by review, permit requirements shall be clearly stated. Performance standards, rather than specific technologies or procedures, shall be specified when appropriate.

(e) The department shall submit an annual report on the status of the facilitated application process, including any recommendations for improvements to the facilitated application process, to the legislature no later than twenty days prior to the convening of each regular session.

[~~(e)~~] (f) For purposes of this section:

"Permit by review" means permits approved by the appropriate state departments.

"Permit by rule" means permits approved by administrative rule."

SECTION 3. Section 201-64, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201-64[]] Streamlining activities. (a) The department may:

(1) Monitor permits on an ongoing basis to determine the source of inefficiencies, delays, and duplications and the status of permits in progress;

(2) Pursue the implementation of streamlining measures including, but not necessarily limited to, those measures defined in consultation with affected state agencies, county central coordinating agencies, and members of the public; and

(3) Design applications, checklists, and other forms essential to the implementation of approved streamlining measures in coordination with involved state and county regulatory agencies, and members of the public.

(b) The department shall establish:

(1) A single digital portal that allows applicants and agencies to upload applications, permits, and relevant documents and track the status of applications in real time;

(2) A fast-track process to expedite approval of low-impact projects;

(3) A permit by rule process that allows applications for low-impact projects to be reviewed by a licensed design professional; and

(4) Criteria to classify low-impact projects; provided that the criteria shall consider environmental and community impacts.

(c) For the purposes of this section, "licensed design professional" means a professional engineer, architect, surveyor, or landscape architect licensed under chapter 464."

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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of full-time equivalent ( FTE) positions within the department of businesses, economic development, and tourism to establish the digital portal and other processes required by section 3 of this Act.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1405
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII