HB 1968: DBEDT; Counties; Permitting; Artificial Intelligence-assisted Pre-compliance Intake Pilot Platform; Appropriation

A BILL FOR AN ACT

RELATING TO PERMITTING.

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

     SECTION 1.  The legislature finds that the Simplifying Permitting for Enhanced Economic Development (SPEED) task force was established pursuant to Act 133, Session Laws of Hawaii 2025.  The SPEED task force brought together various state and county agencies and stakeholders to address issues related to obtaining permits for housing, infrastructure, and other projects.  The legislature further finds that the SPEED task force is responsible for identifying actions taken, challenges encountered, and legislative measures needed to facilitate, expedite, and coordinate state and intergovernmental permitting processes.

     In its initial phase, the SPEED task force split into three permitted interaction groups, each focused on a specific, high-impact segment of the permitting system.  The SPEED task force then submitted to the legislature a December 2025 final report of the permitted interaction groups, representing a combined report of the three permitted interaction groups, which outlined findings regarding existing actions and persistent challenges and presented initial recommendations for legislative and administrative measures to improve permitting processes statewide.

     The December 2025 final report identifies lengthy waiting times as a common issue in the permitting process and finds that applicants, staff, and the process itself share responsibility for these delays.  However, a major delay in the process occurs before state and county personnel can even begin their substantive technical review, in the form of incomplete or incorrect submissions, misrouted applications, and poor quality plans.  The final report suggests that a digital system or intake portal could be used to prevent the submission of incomplete applications and standardize data across jurisdictions.  The legislature additionally finds that some counties have already begun to implement artificial intelligence tools as part of the application screening process to reduce repetitive tasks for staff while preserving professional judgement.

     Accordingly, the purpose of this Act is to require and appropriate funds for the department of business, economic development, and tourism, in collaboration with a county selected by the department, to develop an artificial intelligence-assisted pre-compliance intake pilot platform for that county.

     SECTION 2.  (a)  The department of business, economic development, and tourism shall develop, in collaboration with a county selected by the department, an artificial intelligence-assisted pre-compliance intake pilot platform for that county.  The pilot platform shall:

     (1)  Be limited to permitting intake and projects involving single-family homes;

     (2)  Utilize artificial intelligence to support the permit intake, routing, and review process;

     (3)  Screen applications for completeness, missing documentation, and inconsistencies;

     (4)  Enforce required fields at intake;

     (5)  Validate basic parcel and zoning information;

     (6)  Route applications concurrently to all relevant county agencies;

     (7)  Offer guidance to applicants through an applicant-facing chat and frequently asked questions resources; and

     (8)  Preserve the use of in-person assistance and phone support and ensure that any use of automation or artificial intelligence enhances, rather than replaces, human service.

     (b)  The department of business, economic development, and tourism shall develop a policy or metric to measure the success of the pilot platform to determine if such platforms are suitable for adoption by all counties.

     SECTION 3.  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 2026-2027 for the department of business, economic development, and tourism to develop, in collaboration with the county selected by the department pursuant to section 2(a), an artificial intelligence-assisted pre-compliance intake pilot platform for that county; provided that no funds shall be made available under this Act unless the selected county provides matching funds in the sum of $          .

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

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

DBEDT; Counties; Permitting; Artificial Intelligence-assisted Pre-compliance Intake Pilot Platform; Appropriation

Description:

Requires and appropriates funds for the Department of Business, Economic Development, and Tourism, in collaboration with a county selected by the Department, to develop an artificial intelligence-assisted pre-compliance intake pilot platform, subject to a matching funds requirement for the county.  Requires the Department of Business, Economic Development, and Tourism to develop a policy or metric to measure the success of the pilot platform.  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 permitting.

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

     SECTION 1.  The legislature finds that the Simplifying Permitting for Enhanced Economic Development (SPEED) task force was established pursuant to Act 133, Session Laws of Hawaii 2025.  The SPEED task force brought together various state and county agencies and stakeholders to address issues related to obtaining permits for housing, infrastructure, and other projects.  The legislature further finds that the SPEED task force is responsible for identifying actions taken, challenges encountered, and legislative measures needed to facilitate, expedite, and coordinate state and intergovernmental permitting processes.

     In its initial phase, the SPEED task force split into three permitted interaction groups, each focused on a specific, high-impact segment of the permitting system.  The SPEED task force then submitted to the legislature a December 2025 final report of the permitted interaction groups, representing a combined report of the three permitted interaction groups, which outlined findings regarding existing actions and persistent challenges and presented initial recommendations for legislative and administrative measures to improve permitting processes statewide.

     The December 2025 final report identifies lengthy waiting times as a common issue in the permitting process and finds that applicants, staff, and the process itself share responsibility for these delays.  However, a major delay in the process occurs before state and county personnel can even begin their substantive technical review, in the form of incomplete or incorrect submissions, misrouted applications, and poor quality plans.  The final report suggests that a digital system or intake portal could be used to prevent the submission of incomplete applications and standardize data across jurisdictions.  The legislature additionally finds that some counties have already begun to implement artificial intelligence tools as part of the application screening process to reduce repetitive tasks for staff while preserving professional judgement.

     The final report also notes that counties currently use incompatible data standards to represent permit status, key dates, valuations, and categories, which can lead to confusion amongst contractors working in more than one county and degrade application quality.  A statewide platform that ensures consistent data, shared metrics, and public-facing information could therefore help ensure a more cohesive permitting process across jurisdictions.

     Accordingly, the purpose of this Act is to require the department of business, economic development, and tourism to develop a statewide permitting intake platform.

     SECTION 2.  The department of business, economic development, and tourism shall develop a statewide permitting intake platform.  The statewide permitting intake platform shall:

     (1)  Utilize artificial intelligence to support the permit intake, routing, and review process;

     (2)  Be shared, or at minimum interoperable, amongst counties and state permitting agencies;

     (3)  Screen applications for completeness, missing documentation, and inconsistencies;

     (4)  Enforce required fields at intake;

     (5)  Validate basic parcel and zoning information;

     (6)  Route applications concurrently to all relevant agencies;

     (7)  Offer guidance to applicants through an applicant-facing chat and frequently asked questions resources; and

     (8)  Preserve the use of in-person assistance and phone support and ensure that any use of automation or artificial intelligence enhances, rather than replaces, human service.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the department of business, economic development, and tourism to develop a statewide permitting intake platform pursuant to section 2 of this Act; provided that no funds shall be made available under this Act unless each county provides matching funds in the sum of $12,500 per county.

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

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

DBEDT; Counties; Permitting; Statewide Permitting Intake Platform; Appropriation

Description:

Implements certain recommendations of the SPEED Task Force.  Requires the Department of Business, Economic Development, and Tourism to develop a statewide permitting intake platform.  Appropriates funds for the development of the platform, subject to a matching funds requirement from the counties.

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.  145-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1968

      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 Economic Development & Technology, to which was referred H.B. No. 1968 entitled:

"A BILL FOR AN ACT RELATING TO PERMITTING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require the Department of Business, Economic Development, and Tourism to develop a statewide permitting intake platform; and

     (2)  Appropriate funds for the development of the platform, subject to a matching funds requirement from the counties.

     Your Committee received testimony in support of this measure from the Mayor of the County of Hawaiʻi; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Maui Chamber of Commerce; Holomua Collaborative; Cares; and three individuals.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Office of Planning and Sustainable Development.

     Your Committee finds that the Simplifying Permitting for Enhanced Economic Development (SPEED) Task Force was established pursuant to Act 133, Session Laws of Hawaii 2025, to identify actions taken, challenges encountered, and legislative measures needed to facilitate, expedite, and coordinate state and intergovernmental permitting processes.  Your Committee further finds that in the SPEED Task Force's December 2025 Final Report, it identified incomplete and incorrect submissions, misrouted applications, and poor-quality plans as a major source of delay in the permitting process.  The SPEED Task Force has recommended the development of a digital intake platform to help prevent the incomplete application submissions and related issues.  Your Committee believes that at this time, rather than implementing a statewide intake platform, a more prudent approach is to pilot a more narrowly-tailored platform in a single county.

     Accordingly, your Committee has amended this measure by:

     (1)  Changing the statewide permitting intake platform to an artificial intelligence-assisted pre-compliance intake pilot platform, to be developed in a single county selected by the Department of Business, Economic Development, and Tourism;

     (2)  Narrowing the scope of the pilot platform to permitting intake and projects involving single-family homes;

     (3)  Requiring the Department of Business, Economic Development, and Tourism to develop a policy or metric to measure the success of the pilot platform;

     (4)  Changing the appropriation and matching fund requirement to unspecified amounts;

     (5)  Limiting the matching funds requirement to the single county selected by the Department of Business, Economic Development, and Tourism;

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

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

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $25,000 for the artificial intelligence-assisted pre-compliance intake pilot platform with $25,000 in matching funds.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1968, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1968, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,