RELATING TO ESSENTIAL PERMITTING POSITIONS.

SB2671

THE SENATE

S.B. NO.

2671

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to essential permitting positions
.

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

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SECTION 1.
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The legislature
finds that Hawaii's permitting process has long been a source of frustration
for residents, developers, and government agencies.
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High vacancy rates, outdated systems, and
fragmented workflows have led to significant delays in housing and
infrastructure development.
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Recent
legislative actions have attempted to address permitting delays, including Act 295,
Session Laws of Hawaii 2025, which established requirements and procedures for
permit applicants to apply for an expedited permit if sixty days have lapsed
after a permit application was deemed complete by a relevant agency, and Act 133,
Session Laws of Hawaii 2025, which established the simplifying permitting for enhanced
economic development task force to identify legislative measures necessary to
facilitate, expedite, and coordinate state and intergovernmental development
permit processes.
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The legislature finds
that additional reform is urgently needed.

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The legislature further finds that one
proven strategy to improve recruitment and retention for hard-to-fill
government roles is offering differential pay.
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The department of education implemented shortage differentials of up to
$10,000 for special education, Hawaiian immersion, and other hard-to-staff teaching
positions.
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These incentives led to a
thirty-five per cent reduction in unlicensed special education teachers and
significantly improved staffing stability.
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Similar models have been used in other departments and bargaining units
to address workforce shortages.

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In addition, the governor's operation hire
Hawaii initiative has actively tackled personnel challenges across state
agencies by promoting expedited hiring and workforce equity.

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This Act establishes a pilot program that
will build on those successes by empowering counties to streamline permitting
operations through targeted staffing, performance incentives, and
interdepartmental coordination.

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Accordingly, the purpose of this Act is to
improve the speed, accountability, and quality of permit processing in county
departments through the implementation of a pilot program that targets
staffing, performance incentives, and interdepartmental competition.

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SECTION 2.
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(a)
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The mayor of a county may
implement a pilot program to improve the
speed, accountability, and quality of permit processing within counties that
elect to participate in the pilot program through targeted staffing,
performance incentives, and interdepartmental competition
.
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The
pilot program shall be implemented as an experimental modernization project
pursuant to section 78-3.5, Hawaii Revised Statutes, and the purposes,
methodology, duration, and criteria for evaluation developed pursuant to
section 78-3.5(b)(1), Hawaii Revised Statutes, shall be consistent with subsections
(b) through (h).

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(b)
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The pilot program shall operate for five fiscal years, beginning July 1,
2026, and shall include the following:

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(1)
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The
mayor of a county participating in the pilot program may designate any number
of positions in departments involved in permit review, permit processing, or
both, as essential permitting positions;

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(2)
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Each
position designated as an essential permitting position shall receive a minimum
differential payment equal to fifteen per cent of the position's salary;
provided that an agency may increase the amount of the differential payment above
fifteen per cent of the position's salary if the mayor deems it necessary to
recruit or retain necessary workers in essential permitting positions;

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(3)
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Persons
may be hired into essential permitting positions at salaries above the minimum
salary within the approved salary range for the purpose of attracting qualified
candidates; and

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(4)
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Personnel
departments shall prioritize the hiring of individuals for essential permitting
positions over the hiring for other positions.
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A personnel department shall make a conditional offer to candidates qualified
for essential permitting positions within fourteen days of the date on which
the candidate was interviewed by the county.

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(c)
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A
county that participates in the pilot program shall designate and set aside moneys
for:

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(1)
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Differential
payments pursuant to subsection (b)(2);

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(2)
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The
hiring of new employees for essential permitting positions; and

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(3)
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Financial
awards for meeting milestone goals as provided in subsection (e).

Notwithstanding
any provision of section 46-16.8, Hawaii Revised Statutes, or any charter
provision, ordinance, or other law to the contrary, moneys collected from the
county surcharge on state tax and distributed to each county pursuant to
sections 46-16.8 and 237-8.6, Hawaii Revised Statutes, may be appropriated
and allocated by a respective participating county to fulfill the requirements of
this subsection and fund the positions subject to the pilot project.

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(d)
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The
mayor of a county participating in the pilot program shall establish a
countywide goal that describes the specific metrics by which the county intends
to improve permitting times by participating in the pilot program.

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(e)
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In
addition to the countywide goal in subsection (d), each county agency that
participates in the pilot program shall establish four milestone goals that
describe the specific metrics by which the agency aims to improve permitting
efficiency.
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The milestone goals may
include reducing average review times by a specific amount of time or
increasing throughput by a specific amount.

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Upon achieving each milestone goal, designated
agency personnel pursuant to subsection (c) shall receive financial awards of
at least three per cent of the person's annual salary, as determined by the
county; provided that the county may pay a financial award greater than three
per cent.
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The county agency shall
designate the specific employees or classes of employees who shall be eligible
for the financial awards.

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(f)
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Each
county agency that participates in the pilot program shall submit quarterly reports
to the county council on the agency's progress in achieving the performance
metrics described in subsections (d) and (e).

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(g)
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Each participating county shall establish or designate a single position
to serve as the county wide permitting program coordinator.
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The duties of the permitting program
coordinator shall include:

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(1)
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Overseeing
and facilitating permit workflow across departments;

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(2)
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Troubleshooting
to resolve bottlenecks and interdepartmental issues;

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(3)
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Serving
as a liaison among stakeholders, including applicants, reviewers, inspectors,
and department heads;

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(4)
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Ensuring
that milestone goals are tracked and reported accurately; and

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(5)
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Submitting
annual reports to the legislature no later than twenty days prior to the
convening of each regular session.
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The
annual reports shall include:

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(A)
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Any
recommended adjustments to the pilot program;

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(B)
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Recommendations
for pilot program expansion based on pilot program outcomes; and

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(C)
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Any
other findings and recommendations, including any proposed legislation.

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(h)
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The pilot program shall cease to exist on June 30, 2031,
unless the pilot program is extended by the legislature.

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(i)
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As used in this section, "essential permitting position" means
a position designated by a mayor as a position that is essential for the review
of permits, processing of permits, or both, pursuant to subsection (b)(1).
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"Essential permitting positions" may
include both vacant positions and existing positions that are currently filled.

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SECTION 3.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Counties;
Permit Processing; Differential Payments; Salaries; Pilot Program; Reports

Description:

Establishes
a pilot program to improve the speed, accountability, and quality of permit
processing through targeted staffing, performance incentives, and
interdepartmental competition within participating counties.
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Authorizes a mayor to designate any number of
positions as essential permitting positions across departments involved in
permit review, permit processing, or both.
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Authorizes the payment of a minimum differential payment to assist in
employee recruitment and retention.
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Authorizes the hiring of essential permitting positions at salaries
above the minimum salary within the approved salary range.
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Requires personnel departments to prioritize
the hiring of individuals into essential permitting positions over other
positions.
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Authorizes counties to use
revenues from the county surcharge on state tax pursuant to pay for pilot
program expenses.
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Requires annual
reports to the Legislature.
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Sunsets
6/30/2031.

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