HB 1799: Counties; Experimental and Demonstration Housing Projects; Commercial Projects

A BILL FOR AN ACT

RELATING TO THE COUNTIES.

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

     SECTION 1.  Section 46-15, Hawaii Revised Statutes, is amended to read as follows:

     "§46-15  Experimental and demonstration housing projects[.] or commercial projects.  (a)  The mayor of each county, after holding a public hearing on the matter and receiving the approval of the respective council, shall be empowered to designate areas of land for experimental and demonstration housing projects[,] or commercial projects, the purposes of which are to research and develop ideas that would reduce the cost of housing or support commercial development in the State.  Except as [hereinafter] provided[,] in this section, the experimental and demonstration housing projects or commercial projects shall be exempt from all statutes, ordinances, charter provisions, and rules or regulations of any governmental agency or public utility relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction and sale of homes thereon; provided that the experimental and demonstration housing projects or commercial projects shall not affect the [safety]:

     (1)  Safety standards or tariffs approved by the public [utility commissions] utilities commission for such public utility[.]; or

     (2)  Safety standards, tariffs, rates, and fees of the various boards of water supply authorized under chapter 54.

     (b)  The mayor of each county, with the approval of the respective council, may designate a county agency or official who shall have the power to review all plans and specifications for the subdivisions, development and improvement of the land involved, and the construction and sale of homes thereon.  The county agency or official shall have the power to approve or disapprove or to make modifications to all or any portion of the plans and specifications.

     (c)  The county agency or official shall submit preliminary plans and specifications to the legislative body of the respective county for its approval or disapproval.  The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the approved preliminary plans and specifications.  The final plans and specifications shall constitute the standards for the particular project.

     (d)  No action shall be prosecuted or maintained against any county, its officials, or its employees, on account of actions taken in reviewing, approving, or disapproving such plans and specifications.

     (e)  Any experimental or demonstration housing project [for the purposes hereinabove mentioned] or commercial project may be sponsored by any state or county agency or any person as defined in section 1-19[.] for the purposes of this section.

     (f)  The county agency or official shall apply to the state land use commission for an appropriate land use district classification change, except where a proposed project is located on land within an urban district established by the state land use commission.  Notwithstanding any law, rule, or regulation to the contrary, the state land use commission may approve the application at any time after a public hearing held in the county where the land is located, upon notice of the time and place of the hearing being published in the same manner as the notice required for a public hearing by the planning commission of the appropriate county.

     [(b)  The experimental] (g)  Experimental and demonstration homes or commercial projects may be sold to the public under terms and conditions approved by the county agency or official who has been designated to review the plans and specifications.

     [(c)] (h)  The county agency or official may adopt [and promulgate] rules and regulations [which are] necessary or desirable to carry out the purposes of this section."

     SECTION 2.  Section 46-15.01, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§46-15.01[]]  Limitation of application.  This chapter shall not be construed to exempt counties from the application of chapter 104 to experimental and demonstration housing projects or commercial projects pursuant to section 46-15."

     SECTION 3.  Section 104-1, Hawaii Revised Statutes, is amended by amending the definition of "public work" to read as follows:

     ""Public work" means any project, including development of any housing or commercial project pursuant to section 46-15 or housing project pursuant to chapter 201H and development, construction, renovation, and maintenance related to refurbishment of any real or personal property, where the funds or resources required or used to undertake the project are to any extent derived, either directly or indirectly, from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal taxes."

     SECTION 4.  Section 104-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  This chapter shall apply to every contract in excess of $2,000 for construction of a public work project to which a governmental contracting agency is a party; provided that this chapter shall not apply to experimental and demonstration housing or commercial project developed pursuant to section 46-15 or housing developed pursuant to chapter 201H if the cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation.

     For the purposes of this subsection:

     "Contract" includes but is not limited to any agreement, purchase order, or voucher in excess of $2,000 for construction of a public work project.

     "Governmental contracting agency" includes:

     (1)  Any person or entity that causes either directly or indirectly the building or development of a public work; and

     (2)  Any public-private partnership.

     "Party" includes eligible bidders for and eligible developers of any public work and any housing under chapter 201H; provided that this subsection shall not apply to any housing or commercial project developed under section 46-15 or housing project developed under chapter 201H if the entire cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation."

     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, and shall be repealed on           ; provided that the amendments made to section 104-2(a), Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is reenacted on June 30, 2030, pursuant to section 5 of Act 54, Session Laws of Hawaii 2017, as amended by section 4 of Act 39, Session Laws of Hawaii 2018.

Report Title:

Counties; Experimental and Demonstration Housing Projects; Commercial Projects

Description:

Expands on a county's experimental and demonstration housing project authority to include the development of commercial projects.  Sunsets on an unspecified date.  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 THE COUNTIES.

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

     SECTION 1.  Section 46-15, Hawaii Revised Statutes, is amended to read as follows:

     "§46-15  Experimental and demonstration housing projects[.] or commercial projects.  (a)  The mayor of each county, after holding a public hearing on the matter and receiving the approval of the respective council, shall be empowered to designate areas of land for experimental and demonstration housing projects[,] or commercial projects, the purposes of which are to research and develop ideas that would reduce the cost of housing or support commercial development in the State.  Except as [hereinafter] provided[,] in this section, the experimental and demonstration housing projects or commercial projects shall be exempt from all statutes, ordinances, charter provisions, and rules or regulations of any governmental agency or public utility relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction and sale of homes thereon; provided that the experimental and demonstration housing projects or commercial projects shall not affect the [safety]:

     (1)  Safety standards or tariffs approved by the public [utility commissions] utilities commission for such public utility[.]; or

     (2)  Safety standards, tariffs, rates, and fees of the various boards of water supply authorized under chapter 54.

     (b)  The mayor of each county, with the approval of the respective council, may designate a county agency or official who shall have the power to review all plans and specifications for the subdivisions, development and improvement of the land involved, and the construction and sale of homes thereon.  The county agency or official shall have the power to approve or disapprove or to make modifications to all or any portion of the plans and specifications.

     (c)  The county agency or official shall submit preliminary plans and specifications to the legislative body of the respective county for its approval or disapproval.  The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the approved preliminary plans and specifications.  The final plans and specifications shall constitute the standards for the particular project.

     (d)  No action shall be prosecuted or maintained against any county, its officials, or its employees, on account of actions taken in reviewing, approving, or disapproving such plans and specifications.

     (e)  Any experimental or demonstration housing project [for the purposes hereinabove mentioned] or commercial project may be sponsored by any state or county agency or any person as defined in section 1-19[.] for the purposes of this section.

     (f)  The county agency or official shall apply to the state land use commission for an appropriate land use district classification change, except where a proposed project is located on land within an urban district established by the state land use commission.  Notwithstanding any law, rule, or regulation to the contrary, the state land use commission may approve the application at any time after a public hearing held in the county where the land is located, upon notice of the time and place of the hearing being published in the same manner as the notice required for a public hearing by the planning commission of the appropriate county.

     [(b)  The experimental] (g)  Experimental and demonstration homes or commercial projects may be sold to the public under terms and conditions approved by the county agency or official who has been designated to review the plans and specifications.

     [(c)] (h)  The county agency or official may adopt [and promulgate] rules and regulations [which are] necessary or desirable to carry out the purposes of this section."

     SECTION 2.  Section 46-15.01, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§46-15.01[]]  Limitation of application.  This chapter shall not be construed to exempt counties from the application of chapter 104 to experimental and demonstration housing projects or commercial projects pursuant to section 46-15."

     SECTION 3.  Section 104-1, Hawaii Revised Statutes, is amended by amending the definition of "public work" to read as follows:

     ""Public work" means any project, including development of any housing or commercial project pursuant to section 46-15 or housing project pursuant to chapter 201H and development, construction, renovation, and maintenance related to refurbishment of any real or personal property, where the funds or resources required or used to undertake the project are to any extent derived, either directly or indirectly, from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal taxes."

     SECTION 4.  Section 104-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  This chapter shall apply to every contract in excess of $2,000 for construction of a public work project to which a governmental contracting agency is a party; provided that this chapter shall not apply to experimental and demonstration housing or commercial project developed pursuant to section 46-15 or housing developed pursuant to chapter 201H if the cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation.

     For the purposes of this subsection:

     "Contract" includes but is not limited to any agreement, purchase order, or voucher in excess of $2,000 for construction of a public work project.

     "Governmental contracting agency" includes:

     (1)  Any person or entity that causes either directly or indirectly the building or development of a public work; and

     (2)  Any public-private partnership.

     "Party" includes eligible bidders for and eligible developers of any public work and any housing under chapter 201H; provided that this subsection shall not apply to any housing or commercial project developed under section 46-15 or housing project developed under chapter 201H if the entire cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation."

     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; provided that the amendments made to section 104-2(a), Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is reenacted on June 30, 2030, pursuant to section 5 of Act 54, Session Laws of Hawaii 2017, as amended by section 4 of Act 39, Session Laws of Hawaii 2018.

Report Title:

Counties; Experimental and Demonstration Housing Projects; Commercial Projects

Description:

Expands on a county's experimental and demonstration housing project authority to include the development of commercial projects.  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 the counties.

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

     SECTION 1.  Section 46-15, Hawaii Revised Statutes, is amended to read as follows:

     "§46-15  Experimental and demonstration housing projects[.] or commercial projects.  (a)  The mayor of each county, after holding a public hearing on the matter and receiving the approval of the respective council, shall be empowered to designate areas of land for experimental and demonstration housing projects[,] or commercial projects, the purposes of which are to research and develop ideas that would reduce the cost of housing or support commercial development in the State.  Except as [hereinafter] provided[,] in this section, the experimental and demonstration housing projects or commercial projects shall be exempt from all statutes, ordinances, charter provisions, and rules or regulations of any governmental agency or public utility relating to planning, zoning, construction standards for subdivisions, development and improvement of land, and the construction and sale of homes thereon; provided that the experimental and demonstration housing projects or commercial projects shall not affect the safety standards or tariffs approved by the public [utility commissions] utilities commission for such public utility.

     (b)  The mayor of each county, with the approval of the respective council, may designate a county agency or official who shall have the power to review all plans and specifications for the subdivisions, development and improvement of the land involved, and the construction and sale of homes thereon.  The county agency or official shall have the power to approve or disapprove or to make modifications to all or any portion of the plans and specifications.

     (c)  The county agency or official shall submit preliminary plans and specifications to the legislative body of the respective county for its approval or disapproval.  The final plans and specifications for the project shall be deemed approved by the legislative body if the final plans and specifications do not substantially deviate from the approved preliminary plans and specifications.  The final plans and specifications shall constitute the standards for the particular project.

     (d)  No action shall be prosecuted or maintained against any county, its officials, or its employees, on account of actions taken in reviewing, approving, or disapproving such plans and specifications.

     (e)  Any experimental or demonstration housing project [for the purposes hereinabove mentioned] or commercial project may be sponsored by any state or county agency or any person as defined in section 1-19[.] for the purposes of this section.

     (f)  The county agency or official shall apply to the state land use commission for an appropriate land use district classification change, except where a proposed project is located on land within an urban district established by the state land use commission.  Notwithstanding any law, rule, or regulation to the contrary, the state land use commission may approve the application at any time after a public hearing held in the county where the land is located, upon notice of the time and place of the hearing being published in the same manner as the notice required for a public hearing by the planning commission of the appropriate county.

     [(b)  The experimental] (g)  Experimental and demonstration homes or commercial projects may be sold to the public under terms and conditions approved by the county agency or official who has been designated to review the plans and specifications.

     [(c)] (h)  The county agency or official may adopt [and promulgate] rules and regulations [which are] necessary or desirable to carry out the purposes of this section."

     SECTION 2.  Section 46-15.01, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§46-15.01[]]  Limitation of application.  This chapter shall not be construed to exempt counties from the application of chapter 104 to experimental and demonstration housing projects or commercial projects pursuant to section 46-15."

     SECTION 3.  Section 104-1, Hawaii Revised Statutes, is amended by amending the definition of "public work" to read as follows:

     ""Public work" means any project, including development of any housing or commercial project pursuant to section 46-15 or housing project pursuant to chapter 201H and development, construction, renovation, and maintenance related to refurbishment of any real or personal property, where the funds or resources required or used to undertake the project are to any extent derived, either directly or indirectly, from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal taxes."

     SECTION 4.  Section 104-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  This chapter shall apply to every contract in excess of $2,000 for construction of a public work project to which a governmental contracting agency is a party; provided that this chapter shall not apply to experimental and demonstration housing or commercial project developed pursuant to section 46-15 or housing developed pursuant to chapter 201H if the cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation.

     For the purposes of this subsection:

     "Contract" includes but is not limited to any agreement, purchase order, or voucher in excess of $2,000 for construction of a public work project.

     "Governmental contracting agency" includes:

     (1)  Any person or entity that causes either directly or indirectly the building or development of a public work; and

     (2)  Any public-private partnership.

     "Party" includes eligible bidders for and eligible developers of any public work and any housing under chapter 201H; provided that this subsection shall not apply to any housing or commercial project developed under section 46-15 or housing project developed under chapter 201H if the entire cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation."

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

     SECTION 6.  This Act shall take effect upon its approval; provided that the amendments made to section 104-2(a), Hawaii Revised Statutes, by section 4 of this Act shall not be repealed when that section is reenacted on June 30, 2030, pursuant to section 5 of Act 54, Session Laws of Hawaii 2017, as amended by section 4 of Act 39, Session Laws of Hawaii 2018.

Report Title:

Counties; Experimental and Demonstration Housing Projects and Commercial Projects

Description:

Expands on a county's experimental and demonstration project authority to include the development of commercial projects.

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.  1094-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1799

      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 Finance, to which was referred H.B. No. 1799, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE COUNTIES,"

begs leave to report as follows:

     The purpose of this measure is to expand a county's experimental and demonstration housing project authority to include the development of commercial projects.

     Your Committee received testimony in support of this measure from the Department of Housing and Land Management of the City and County of Honolulu; Honolulu Board of Water Supply; and Housing Hawaiʻi's Future.  Your Committee received testimony in opposition to this measure from the Office of Hawaiian Affairs.

     Your Committee has amended this measure by inserting an unspecified sunset date.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1799, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1799, H.D. 2.

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

STAND. COM. REP. NO.  334-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1799

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committees on Housing and Water & Land, to which was referred H.B. No. 1799 entitled:

"A BILL FOR AN ACT RELATING TO THE COUNTIES,"

beg leave to report as follows:

     The purpose of this measure is to expand a county's experimental and demonstration housing project authority to include the development of commercial projects.

     Your Committees received testimony in support of this measure from the Department of Housing and Land Management of the City and County of Honolulu and one individual.  Your Committees received testimony in opposition to this measure from the Department of Water of the County of Kauaʻi and one individual.  Your Committees received comments on this measure from the Honolulu Board of Water Supply.

     Your Committees find that counties have authority to establish experimental and demonstration housing projects, but lack comparable flexibility to support innovative commercial development that can stimulate local economic activity.  Your Committees further find that allowing counties to pursue pilot commercial projects under similar streamlined processes will provide an opportunity to evaluate alternative regulatory models without compromising safety or public oversight.  Your Committees believe that providing this flexibility to the counties can streamline regulatory learning, inform long‑term land use policy, and strengthen the State's overall approach to housing and economic development.

     Your Committees have amended this measure by:

     (1)  Prohibiting experimental and demonstration housing projects and commercial projects from affecting safety standards, tariffs, rates, and fees of the various boards of water supply;

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

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

     As affirmed by the records of votes of the members of your Committees on Housing and Water & Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1799, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1799, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Housing and Water & Land,