HB 1721: Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single-family and multi-family residential projects.  However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insurance requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

     The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits; and

     (2)  Require state or county inspectors to inspect all projects with expedited permits.

     SECTION 2.  Section 46-90, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  An applicant or the applicant's agent may submit a request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county.  The request by the applicant or the applicant's agent shall include:

     (1)  A full and complete set of plans;

     (2)  Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

     (3)  The following information from all licensed professionals on record:

          (A)  Policies of insurance that:

              (i)  Name the State and county as additional [insurers;] insureds under a commercial general liability policy;

             (ii)  Are in amounts equivalent to at least [$2,000,000;] $1,000,000; and

            (iii)  Specifically [allow coverage for the completed project for the period] require that the licensed professional maintain professional liability insurance that provides coverage for claims arising out of the completed project, so long as the claim is first made and reported in accordance with the terms of the policy during the period allowed under section 657-8; and

          (B)  A statement that indemnifies and holds harmless the State, its officers, agents, and employees, and the county, its officers, agents, and employees[;], from and against claims, damages, losses, and expenses, including attorneys' fees, only to the extent caused by the negligent acts, errors, or omissions of the licensed professional;

     (4)  A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

     (5)  The required county contractor's statement."

      2.  By amending subsections (e) and (f) to read:

     "(e)  After approval, the licensed professional on record or county shall ensure that the project construction is in compliance with the approved plans under the expedited permit, including but not limited to the requirements under chapter 6E and all applicable ordinances regarding land use, set-back, height, and site development requirements for the project site.  State [and] or county inspectors shall [not be precluded from entering and inspecting project sites] inspect all projects with expedited permits.  Licensed professionals and contractors shall address any defects in construction identified by state or county inspectors; provided that the defects in construction are consistent with the specifications in the approved plans.  If the defects are not consistent with the approved plans, the licensed professional shall note the disagreement and assume review responsibility as the approving authority or initiate a change to the plans to address the defect.  Consistent with the requirements and time periods established by each county, all licensed contractors and the licensed professional or the licensed contractors' or licensed professional's successor agents shall maintain a record of inspected structural, civil, plumbing, and electrical systems after a certificate of occupancy is issued and provide a copy of that record to the applicant and the county.

     (f)  Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county.  The] county shall issue [the] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2026, and shall be repealed on June 30, 2031.

Report Title:

Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

Description:

Clarifies insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.  Requires state or county inspectors to inspect all projects with expedited permits.  Repeals 6/30/2031.  (CD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single-family and multi-family residential projects.  However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insurance requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

     The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits; and

     (2)  Require state or county inspectors to inspect all projects with expedited permits.

     SECTION 2.  Section 46-90, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  An applicant or the applicant's agent may submit a request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county.  The request by the applicant or the applicant's agent shall include:

     (1)  A full and complete set of plans;

     (2)  Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

     (3)  The following information from all licensed professionals on record:

          (A)  Policies of insurance that:

               (i)  Name the State and county as additional [insurers;] insureds under a commercial general liability policy;

              (ii)  Are in amounts equivalent to at least [$2,000,000;] $1,000,000; and

             (iii)  Specifically [allow coverage for the completed project for the period] require that the licensed professional maintain professional liability insurance that provides coverage for claims arising out of the completed project, so long as the claim is first made and reported in accordance with the terms of the policy during the period allowed under section 657-8; and

          (B)  A statement that indemnifies and holds harmless the State, its officers, agents, and employees, and the county, its officers, agents, and employees[;], from and against claims, damages, losses, and expenses, including attorneys' fees, only to the extent caused by the negligent acts, errors, or omissions of the licensed professional;

     (4)  A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

     (5)  The required county contractor's statement."

      2.  By amending subsections (e) and (f) to read:

     "(e)  After approval, the licensed professional on record or county shall ensure that the project construction is in compliance with the approved plans under the expedited permit, including but not limited to the requirements under chapter 6E and all applicable ordinances regarding land use, set-back, height, and site development requirements for the project site.  State [and] or county inspectors shall [not be precluded from entering and inspecting project sites] inspect all projects with expedited permits.  Licensed professionals and contractors shall address any defects in construction identified by state or county inspectors; provided that the defects in construction are consistent with the specifications in the approved plans.  If the defects are not consistent with the approved plans, the licensed professional shall note the disagreement and assume review responsibility as the approving authority or initiate a change to the plans to address the defect.  Consistent with the requirements and time periods established by each county, all licensed contractors and the licensed professional or the licensed contractors' or licensed professional's successor agents shall maintain a record of inspected structural, civil, plumbing, and electrical systems after a certificate of occupancy is issued and provide a copy of that record to the applicant and the county.

     (f)  Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county.  The] county shall issue [the] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2031.

Report Title:

Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

Description:

Clarifies insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.  Requires state or county inspectors to inspect all projects with expedited permits.  Repeals 6/30/2031.  Effective 7/1/3000.  (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single-family and multi-family residential projects.  However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insurance requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

     The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

     Accordingly, the purpose of this Act is to:

     (1)  Clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits; and

     (2)  Require state or county inspectors to inspect all projects with expedited permits.

     SECTION 2.  Section 46-90, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  An applicant or the applicant's agent may submit a request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county.  The request by the applicant or the applicant's agent shall include:

     (1)  A full and complete set of plans;

     (2)  Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

     (3)  The following information from all licensed professionals on record:

          (A)  Policies of insurance that:

               (i)  Name the State and county as additional [insurers;] insureds under a commercial general liability policy;

              (ii)  Are in amounts equivalent to at least [$2,000,000;] $1,000,000; and

             (iii)  Specifically [allow coverage for the completed project for the period] require that the licensed professional maintain professional liability insurance that provides coverage for claims arising out of the completed project, so long as the claim is first made and reported in accordance with the terms of the policy during the period allowed under section 657-8; and

          (B)  A statement that indemnifies and holds harmless the State, its officers, agents, and employees, and the county, its officers, agents, and employees[;], from and against claims, damages, losses, and expenses, including attorneys' fees, only to the extent caused by the negligent acts, errors, or omissions of the licensed professional;

     (4)  A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

     (5)  The required county contractor's statement."

      2.  By amending subsections (e) and (f) to read:

     "(e)  After approval, the licensed professional on record or county shall ensure that the project construction is in compliance with the approved plans under the expedited permit, including but not limited to the requirements under chapter 6E and all applicable ordinances regarding land use, set-back, height, and site development requirements for the project site.  State [and] or county inspectors shall [not be precluded from entering and inspecting project sites] inspect all projects with expedited permits.  Licensed professionals and contractors shall address any defects in construction identified by state or county inspectors; provided that the defects in construction are consistent with the specifications in the approved plans.  If the defects are not consistent with the approved plans, the licensed professional shall note the disagreement and assume review responsibility as the approving authority or initiate a change to the plans to address the defect.  Consistent with the requirements and time periods established by each county, all licensed contractors and the licensed professional or the licensed contractors' or licensed professional's successor agents shall maintain a record of inspected structural, civil, plumbing, and electrical systems after a certificate of occupancy is issued and provide a copy of that record to the applicant and the county.

     (f)  Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county.  The] county shall issue [the] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2031.

Report Title:

Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

Description:

Clarifies insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.  Requires state or county inspectors to inspect all projects with expedited permits.  Repeals 6/30/2031.  Effective 7/1/3000.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single-family and multi-family residential projects.  However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insured requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

     The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

     Accordingly, the purpose of this Act is to clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

     SECTION 2.  Section 46-90, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  An applicant or the applicant's agent may submit a request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county.  The request by the applicant or the applicant's agent shall include:

     (1)  A full and complete set of plans;

     (2)  Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

     (3)  The following information from all licensed professionals on record:

          (A)  Policies of insurance that:

              (i)  Name the State and county as additional insurers[;] under a commercial general liability policy;

             (ii)  Are in amounts equivalent to at least [$2,000,000;] $1,000,000; and

            (iii)  Specifically [allow coverage for the completed project for the period] require that the licensed professional maintain professional liability insurance that provides coverage for claims arising out of the completed project, so long as the claim is first made and reported in accordance with the terms of the policy during the period allowed under section 657-8; and

          (B)  A statement that indemnifies and holds harmless the State, its officers, agents, and employees, and the county, its officers, agents, and employees[;], from and against claims, damages, losses, and expenses, including attorney's fees, only to the extent caused by the negligent acts, errors, or omissions of the licensed professional;

     (4)  A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

     (5)  The required county contractor's statement."

      2.  By amending subsection (f) to read:

     "(f)  Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county.  The] county shall issue [the] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2031.

Report Title:

Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

Description:

Clarifies insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.  Repeals 6/30/2031.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO HOUSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single‑family and multi‑family residential projects.  However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insured requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

     The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

     Accordingly, the purpose of this Act is to clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

     SECTION 2.  Section 46-90, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  An applicant or the applicant's agent may submit a request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county.  The request by the applicant or the applicant's agent shall include:

     (1)  A full and complete set of plans;

     (2)  Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

     (3)  The following information from all licensed professionals on record:

          (A)  Policies of insurance that:

              (i)  Name the State and county as additional insurers[;] for general liability insurance;

             (ii)  Are in amounts equivalent to at least $2,000,000; and

            (iii)  Specifically allow coverage for the completed project for the period under section 657-8; and

          (B)  A statement that indemnifies and holds harmless the State, its officers, agents, and employees and the county, its officers, agents, and employees[;] from and against claims, damages, losses, and expenses, including attorney's fees, arising out of or resulting from the negligent acts, errors, or omissions of the licensed professional;

     (4)  A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

     (5)  The required county contractor's statement."

      2.  By amending subsection (f) to read:

     "(f)  Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county.  The] county shall issue [the] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2031.

Report Title:

Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

Description:

Clarifies insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.  Repeals 6/30/2031.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to address the State's ongoing housing shortage, Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for single‑family and multi‑family residential projects.  However, since its implementation, stakeholders have raised concerns that ambiguities in Act 295 regarding additional insured requirements, indemnification obligations, and certification language may inadvertently create uninsurable conditions, discouraging architects and engineers from participating in the expedited permitting process.

     The legislature believes that clarifying these provisions will ensure that design professionals are not required to assume liabilities beyond what their professional liability insurance can cover, thereby improving participation and supporting the State's broader goal of accelerating housing production.

     Accordingly, the purpose of this Act is to clarify certain provisions under Act 295 relating to insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

     SECTION 2.  Section 46-90, Hawaii Revised Statutes, is amended by amending subsection as follows:

     1.  By amending subsection (b) to read:

     "(b)  An applicant or the applicant's agent may submit a request to the county for an expedited permit if sixty business days have lapsed after the application was considered complete by the relevant agency and the application has not received full approval by the county.  The request by the applicant or the applicant's agent shall include:

     (1)  A full and complete set of plans;

     (2)  Statements or evidence from the relevant permitting agencies that adequate infrastructure capacity is available to service the project site and specified improvements;

     (3)  The following information from all licensed professionals on record:

          (A)  Policies of insurance that:

              (i)  Name the State and county as additional insurers[;] for general liability insurance;

             (ii)  Are in amounts equivalent to at least $2,000,000; and

            (iii)  Specifically allow coverage for the completed project for the period under section 657-8; and

          (B)  A statement that indemnifies and holds harmless the State, its officers, agents, and employees and the county, its officers, agents, and employees[;] from and against claims, damages, losses, and expenses, including attorney's fees, arising out of or resulting from the negligent acts, errors, or omissions of the licensed professional;

     (4)  A statement that sixty business days have lapsed without approval since the application would have been considered complete by the relevant agency; and

     (5)  The required county contractor's statement."

      2.  By amending subsection (f) to read:

     "(f)  Upon completion of construction, the [licensed professional shall certify in writing to the county that a certificate of occupancy is warranted and all laws, rules, ordinances, and conditions governing permitted construction have been met, along with any necessary as-built drawings consistent with the requirements of each county.  The] county shall issue [the] a certificate of occupancy to the applicant and may notate that the certificate is approved by the licensed professional under an agreement pursuant to an expedited permit, and not a county official."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2026, and shall be repealed on June 30, 2031.

Report Title:

Expedited Permits; Insurance; Additional Insureds; Indemnification; Certificates of Occupancy

Description:

Clarifies insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1196-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1721

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1721, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to clarify insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

     Your Committee received testimony in support of this measure from Housing Hawaiʻi's Future; Grassroot Institute of Hawaii; Maui Chamber of Commerce; American Institute of Architects Hawaiʻi State Council; American Council of Engineering Companies of Hawaii; Akala Consulting LLC; and two individuals.  Your Committee received testimony in opposition to this measure from the Plumbers and Fitters UA Local 675.  Your Committee received comments on this measure from one individual.

     Your Committee finds that unclear insurance, indemnification, and certification requirements within the State's expedited permitting framework have created uncertainty for design professionals and hindered participation in housing-related projects.  These ambiguities have raised concerns about exposure to liabilities that exceed commercially insurable limits, contributing to delays in advancing needed residential development.  Your Committee believes that clarifying these statutory requirements will give design professionals greater confidence to participate in the permitting process and support the timely delivery of housing across the State.

     Your Committee has amended this measure by:

     (1)  Clarifying the insurance requirements applicable to licensed professionals participating in the expedited permitting process by:

          (A)  Specifying that the requirement to name the State and county as additional insureds applies for the commercial general liability policy;

          (B)  Reducing the required amount of professional liability insurance coverage from $2,000,000 to $1,000,000, consistent with prevailing industry practices; and

          (C)  Revising the coverage period language to clarify that licensed professionals are required to maintain professional liability insurance that provides coverage for claims arising out of the completed project, so long as the claim is first made and reported in accordance with the terms of the policy during the period allowed under law;

     (2)  Narrowing the scope of the indemnification provision to clarify that a licensed professional's obligation to indemnify and hold harmless the State and county applies only to the extent caused by the licensed professional's negligent acts, errors, or omissions; and

     (3)  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 H.B. No. 1721, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1721, H.D. 2.

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

STAND. COM. REP. NO.  681-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1721

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1721, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to clarify insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

     Your Committee received testimony in support of this measure from the American Council of Engineering Companies of Hawaii; Akala Consulting LLC; Housing Hawaiʻi's Future; The Limtiaco Consulting Group; Grassroot Institute of Hawaii; Gray, Hong, Nojima & Associates, Inc.; Coffman Engineers, Inc.; Maui Chamber of Commerce; and numerous individuals.

     Your Committee finds that Hawaii's prolonged building permit approval process significantly hinders housing development and contributes to high costs and delays.  Establishing a streamlined permitting process that shifts code compliance responsibility to licensed design professionals will reduce bureaucratic obstacles while maintaining safety and regulatory standards.

     Your Committee further finds that to effectuate this streamlined process, the Legislature passed Act 295, Session Laws of Hawaii 2025 (Act 295).  However, due to ambiguities in Act 295, professional liability insurance brokers believe that the Act creates uninsurance conditions, as well as inaccurate citation regarding professional liability insurance.  Due to these concerns, design professionals are currently reluctant to engage in the expedited permitting process contemplated by Act 295.  This measure corrects these concerns to the expedited permitting process authorized under Act 295.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1721, H.D. 1, and recommends that it be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

STAND. COM. REP. NO.  110-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1721

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred H.B. No. 1721 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to clarify insurance, indemnification, and certain certificate of occupancy requirements for purposes of expedited permits.

     Your Committee received testimony in support of this measure from the American Council of Engineering Companies of Hawaii; Grassroot Institute of Hawaii; and three individuals.

     Your Committee finds that Act 295, Session Laws of Hawaii 2025 (Act 295), established an expedited permitting process for certain residential projects to help alleviate the permitting backlog throughout the State.  However, ambiguities within Act 295 regarding additional insured requirements, indemnification language, and certification obligations have created uncertainty for architects and engineers about whether participating in the expedited permitting process could expose them to liabilities their insurance policies do not cover.  Your Committee further finds that these concerns have deterred design professionals from using the expedited permit pathway, thereby slowing housing production at a time when the State urgently needs more homes.  This measure resolves the ambiguities created by Act 295, which will enable more professionals to confidently participate in the expedited process.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1721, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1721, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Housing,