STAND. COM. REP. NO. 1768

Honolulu, Hawaii

, 2025

RE: S.B. No. 66

S.D. 2

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 66, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require permits to be issued by the applicable permitting agency within sixty days for certain single-family and multi-family housing projects if certain conditions are satisfied;

(2) Automatically deem approved a permit that is either not otherwise approved by the applicable permitting agency within sixty days or for which the applicant has agreed to all changes or recommendations to the plans and specifications made by the applicable permitting agency; and

(3) Pause the sixty day permit review period under certain circumstances.

Your Committee received testimony in support of this measure from the Hawai‘i Association of REALTORS; Hawaii Food Industry Association; RMA Sales; Grassroot Institute of Hawaii; NAIOP Hawaii; Hawai‘i YIMBY; and Maui Chamber of Commerce. Your Committee received testimony in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu; HI Good Neighbor; Lāhainā Strong; Hawaii's Thousand Friends; and one individual. Your Committee received comments on this measure from the Department of Land and Natural Resources and Office of Hawaiian Affairs.

Your Committee finds that the State's lengthy permitting process results in delays that can significantly increase project costs, create uncertainty, and slow or disincentivize the construction of much needed housing. As time passes, interest rates rise, the costs of material and labor increase, and market factors change, which can render previously viable projects financially unfeasible. This measure therefore addresses delays in the permitting process that can help with the State's housing crisis.

Your Committee has amended this measure by:

(1) Clarifying the situations in which a county shall not consider an application complete; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 66, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 66, S.D. 2, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair