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GM 1219

Informing the Legislature that on June 8, 2026, the Governor signed the following bill into law: SB2671 SD1 HD2 CD1 (ACT 119).

2026 Regular Session

Hawaii counties run a four-year pilot to speed up permits by paying essential permitting staff more, with milestones, funding, and a single program coordinator.

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Bill Summary · GM 1219

Summary of GM 1219 (Act 119), Hawaii 2026

Purpose and intent

  • Establishes a county-level pilot program to improve the speed, accountability, and quality of permit processing.
  • Builds on prior permitting reforms (Act 295 and Act 133, 2025) and aims to address persistent delays, staffing shortages, and fragmented permit workflows.
  • Specifically authorizes mayors to designate essential permitting positions, implement targeted staffing and performance incentives, and foster interdepartmental coordination within a four-year pilot (fiscal years 2026–2030).

Key provisions and changes

  • Pilot program scope and governance

    • Each county mayor may implement an experimental modernization project (pilot) under Hawaii Revised Statutes section 78-3.5.
    • Pilot duration: four fiscal years, starting July 1, 2026.
    • Counties must set up a structure for essential permitting positions, milestones, and a permitting program coordinator.

  • Essential permitting positions and compensation

    • Counties may designate any number of positions in permit-review/permit-processing departments as essential permitting positions.
    • Each essential permitting position must receive a minimum differential payment of 15% of the position’s salary; counties may increase this differential as needed to recruit/retain staff.
    • Hiring for essential permitting positions may occur at salaries above the minimum of the approved range to attract qualified candidates.
    • Hiring priority: personnel departments must prioritize essential permitting positions over other hires.
    • Conditional offers: for essential permitting positions, a conditional job offer must be made within 14 days after a candidate’s interview.

  • Funding and fiscal mechanics

    • Participating counties must designate or set aside funds for:
    • Differential payments for essential positions.
    • Hiring new essential-permitting staff.
    • Financial awards tied to milestone goals.
    • Moneys from county surcharges on state tax (distributed to counties with populations under 500,000 under §§46-16.8 and 237-8.6, Hawaii Revised Statutes) may be used to fund these pilot requirements, notwithstanding other statutes, charters, or laws.

  • Milestones, performance incentives, and reporting

    • Each participating county agency must establish four milestone goals to improve permitting efficiency (e.g., reduced average review times, increased throughput).
    • Upon meeting milestone goals, designated agency personnel may receive financial awards of at least 3% of annual salary, with potential for higher awards as determined by the county.
    • Agencies must submit quarterly progress reports to the county council detailing performance against milestones.

  • Permitting program coordinator

    • Each participating county must designate a single countywide permitting program coordinator.
    • Responsibilities include overseeing permit workflow across departments, resolving interdepartmental bottlenecks, liaising with applicants and department heads, ensuring accurate milestone reporting, and submitting annual legislative reports no later than 20 days before each regular legislative session. Reports must cover recommended adjustments, expansion ideas, and other findings, including proposed legislation.

  • Sunset and future considerations

    • The pilot program automatically ceases on June 30, 2030, unless extended by the Legislature.

  • Definitions

    • “Essential permitting position” means any position designated by a mayor as essential to permit review/processing, including both filled and vacant roles.

Affected entities and scope

  • Counties implementing the pilot program (potentially all four counties in Hawaii).
  • County permitting offices and related departments involved in permit review and processing.
  • County employees in designated essential permitting positions.
  • County personnel and budget offices, due to funding, hiring, and milestone incentive provisions.
  • The Hawaii Legislature, through annual reporting by the permitting program coordinators.

Timeline and effective date

  • Effective date: July 1, 2026.
  • Pilot duration: four fiscal years (July 1, 2026 – June 30, 2030), with potential for extension by the Legislature.
  • Annual reporting cadence: coordinators must submit reports no later than 20 days prior to each regular session.

Notes

  • The act follows earlier reforms (Act 295/Act 133, 2025) aimed at expediting permits and coordinating permitting processes.
  • The bill emphasizes differential pay as a key tool to recruit/retain essential permitting staff and improve permit processing performance.
  • The measure explicitly authorizes use of specific state tax-municipal surcharges to fund the pilot, highlighting a flexible funding mechanism at the county level.

Compiled from official sources — confirm details with the bill’s official record.

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