HOUSE OF REPRESENTATIVES
H.B. NO.
1721
THIRTY-THIRD LEGISLATURE, 2026
H.D. 2
STATE OF HAWAII
S.D. 2
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 [[Struck through: insurers;]] [Underlined: insureds under a commercial general liability policy;]
(ii) Are in amounts equivalent to at least [[Struck through: $2,000,000;]] [Underlined: $1,000,000;] and
(iii) Specifically [[Struck through: allow coverage for the completed project for the period]] [Underlined: 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[Underlined: ,] and the county, its officers, agents, and employees[[Struck through: ;]][Underlined: , 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 [[Struck through: and]] [Underlined: or] county inspectors shall [[Struck through: not be precluded from entering and inspecting project sites]] [Underlined: 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 [[Struck through: 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 [[Struck through: the]] [Underlined: a] certificate [Underlined: 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.