SB 2378: Counties; Housing; Expedited Permitting; Insurance; Inspections

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, during the regular session of 2025, the legislature passed Act 295 to address the State's housing shortage.  The purpose of Act 295 (2025) was to establish procedures and requirements for single-family and multi-family housing projects to apply for an expedited permit.

     The legislature further finds that, since the enactment of Act 295 (2025), codified as section 46-90, Hawaii Revised Statutes, amendments are necessary to provide clarity on insurance matters to encourage more participation in the expedited permit process.

     Accordingly, the purpose of this Act is to clarify the insurance requirements for participation in the expedited permitting process for single-family and multi-family housing projects.

     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 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 attorneys' fees, to the extent caused by a licensed professional's negligence;

     (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, 2050.

Report Title:

Counties; Housing; Expedited Permitting; Insurance; Inspections

Description:

Clarifies insurance requirements for single-family and multi‑family housing projects to obtain expedited permitting from county agencies.  Clarifies that state or county inspectors shall inspect all projects with expedited permits.  Effective 7/1/2050.  (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, during the regular session of 2025, the legislature passed Act 295 to address the State's housing shortage.  The purpose of Act 295 (2025) was to establish procedures and requirements for single-family and multi-family housing projects to apply for an expedited permit.

     The legislature further finds that, since the enactment of Act 295 (2025), codified as section 46-90, Hawaii Revised Statutes, amendments are necessary to provide clarity on insurance matters to encourage more participation in the program.

     Accordingly, the purpose of this Act is to clarify the insurance requirements for participation in the expedited permitting process for single-family and multi-family housing projects.

     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 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 attorneys' fees, to the extent caused by a licensed professional's negligence;

     (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 upon its approval.

Report Title:

Housing; Counties; Expedited Permitting; Insurance

Description:

Clarifies insurance requirements for single-family and multi‑family housing projects to obtain expedited permitting from county agencies.  (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, during the regular session of 2025, the legislature passed Act 295 to address the State's housing shortage.  The purpose of Act 295 (2025) was to establish procedures and requirements for single-family and multi-family housing projects to apply for an expedited permit.

     The legislature further finds that, since the enactment of Act 295 (2025), codified as section 46-90, Hawaii Revised Statutes, amendments are necessary to provide clarity on insurance matters to encourage more participation in the program.

     Accordingly, the purpose of this Act is to clarify the insurance requirements for participation in the expedited permitting process for single-family and multi-family housing projects.

     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, to the extent caused by a licensed professional's negligence;

     (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 upon its approval.

Report Title:

Housing; Counties; Expedited Permitting; Insurance

Description:

Clarifies insurance requirements for single-family and multi‑family housing projects to obtain expedited permitting from county agencies.

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. 3007

Honolulu, Hawaii

RE:     S.B. No. 2378

        S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2378, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify insurance requirements for single-family and multi-family housing projects to obtain expedited permitting from county agencies.

     Your Committee received testimony in support of this measure from the American Council of Engineering Companies of Hawaii, The Limtiaco Consulting Group, Akala Consulting LLC, Grassroot Institute of Hawaii, and seven individuals.

     Your Committee received testimony in opposition to this measure from the Plumbers and Fitters UA Local 675.

     Your Committee finds that Act 295, Session Laws of Hawaii 2025, inadvertently created uninsurable conditions for design professionals and engineers and contained inaccurate citations related to professional liability insurance, which may limit participation in the expedited permit process for housing development.  This measure would ensure design professionals and engineering firms in the State, particularly small businesses, are able to meet insurance requirements to support expedited permitting.

     Your Committee has amended this measure by:

     (1)  Inserting language to clarify that state or county inspectors shall inspect all projects with expedited permits;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2378, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2378, S.D. 2.

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

STAND. COM. REP. NO. 2459

Honolulu, Hawaii

RE:     S.B. No. 2378

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Housing and Energy and Intergovernmental Affairs, to which was referred S.B. No. 2378 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

beg leave to report as follows:

     The purpose and intent of this measure is to clarify insurance requirements for single-family and multi‑family housing projects to obtain expedited permitting from county agencies.

     Your Committees received testimony in support of this measure from the American Council of Engineering Companies of Hawaii; Grassroot Institute of Hawaii; Akinaka & Associates, LTD; Limtiaco Consulting Group; and twelve individuals.

     Your Committees received testimony in opposition to this measure from one individual.

     Your Committees find that building permit processing times for single-family and multi-family housing development in Hawaii are among the highest in the United States.  Not only must Hawaii homebuilders wait longer to obtain permits compared to homebuilders in other states, but they must also contend with the uncertainty that those long wait times entail.  Long wait times and increased uncertainty in the permitting process ultimately increase housing costs for homebuyers.

     Your Committees further find that Act 295, Session Laws of Hawaii 2025, was enacted to address Hawaii's onerous permitting processes for single-family and multi-family homes.  Notably, Act 295 established requirements and procedures for an expedited permitting process for single-family and multi-family home, until June 30, 2031.  However, the requirements and procedures established by Act 295 inadvertently provided uninsurable conditions and an inaccurate citation regarding professional liability insurance.  While this measure corrects these issues, additional changes are necessary to clarify the insurance requirements for expedited permitting.

     Your Committees have amended this measure by:

     (1)  Clarifying that the requests for an expedited permit shall include policies of insurance that name the State and county as additional insureds for general liability insurance; and

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

     As affirmed by the records of votes of the members of your Committees on Housing and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2378, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2378, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committees on Housing and Energy and Intergovernmental Affairs,