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HCR 126

REQUESTING THE DEPARTMENT OF TRANSPORTATION, IN COORDINATION WITH THE HAWAII HOUSING FINANCE AND DEVELOPMENT CORPORATION, TO CONVENE A WORKING GROUP TO EVALUATE THE FEASIBILITY OF ESTABLISHING STATE-OWNED OR STATE-CONTROLLED WAREHOUSE AND LOGISTICS FACILITIES NEAR PORTS, HARBORS, AND AIRPORTS TO REDUCE MATERIAL COSTS ASSOCIATED WITH PUBLICLY FINANCED HOUSING PROJECTS.

2026 Regular Session Introduced by Darius Kila and 1 co-sponsor

Study the feasibility of state-owned or controlled warehousing/logistics near ports to cut material costs and improve supply chain for publicly financed housing.

Referred to TRS/HOU.
#airports #departmentoftransportation #harbors #hawaiihousingfinanceanddevelopmentcorporation #ports #warehouseandlogisticsfacilities #workinggroup
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Bill Summary · HCR 126

Summary of Bill HCR 126 (2026, Hawaii)

Purpose and Intent

  • HCR 126 requests the Department of Transportation (DOT), in coordination with the Hawaii Housing Finance and Development Corporation (HHFDC), to convene a working group to evaluate the feasibility of establishing state-owned or state-controlled warehouse and logistics facilities near major ports, harbors, and airports.
  • The overarching goal is to reduce material costs for publicly financed housing projects by improving supply chain efficiency, storage, and bulk purchasing capabilities.

Key Provisions

  • Formation of a Working Group

    • The DOT and HHFDC are tasked with convening a working group to study feasibility, governance, costs, and funding mechanisms for state-owned/state-controlled logistics facilities near transportation hubs.
    • The working group should consider both housing cost impacts and broader supply chain efficiency for publicly financed housing.

  • Scope of Analysis (Eight Required Areas)

    1. Identify suitable state-owned lands near ports, harbors, and airports.
    2. Evaluate potential cost savings from centralized storage and coordinated logistics.
    3. Analyze feasibility of bulk purchasing or material staging models.
    4. Assess long-term cost impacts on per-unit housing development.
    5. Examine opportunities for public-private partnerships.
    6. Evaluate potential capital improvement funding mechanisms.
    7. Consider operational models that do not displace private sector services.
    8. Identify any statutory changes needed to implement recommendations.

  • Membership and Roles

    • Co-Chairs: Director of Transportation (or designee) and Executive Director of HHFDC (or designee).
    • Additional members (to be invited, as applicable): Chair of the Hawaiian Homes Commission; a representative from the Department of Hawaiian Home Lands; a representative from Pacific Resource Partnership; a representative from the General Contractors Association of Hawaii; and the Chairs of the Hawaii House and Senate Housing Committees (or their designees).

  • Reporting Requirement

    • The working group must submit a final report with findings and recommendations, including any proposed legislation, to the Legislature no later than 20 days before the convening of the Regular Session of 2027.

  • Procedural Details

    • Certified copies of the resolution will be transmitted to key agency heads and associations named in the bill.

Who/What Is Affected

  • State Agencies
    • Department of Transportation (DOT)
    • Hawaii Housing Finance and Development Corporation (HHFDC)
    • Hawaiian Homes Commission (and its chair)
    • Department of Hawaiian Home Lands (DHHL)
  • Industry and Stakeholders
    • Pacific Resource Partnership
    • General Contractors Association of Hawaii
    • Hawaii House and Senate Housing Committee leadership
  • Public Housing Programs
    • Publicly financed housing projects statewide, which could benefit from potential cost reductions in material procurement and logistics

Timeframe and Procedural Timeline

  • The resolution directs immediate formation of the working group and a reporting timeline:
    • Working group to report findings and recommendations to the Legislature by 20 days before the 2027 Regular Session convenes.
  • Action history indicates the measure went through standard Hawaii legislative committee processes, with multiple referrals and amendments prior to final adoption by both the House and Senate in early 2026.

Potential Impact and Implications

  • If feasible, state-owned or -controlled warehouses/logistics near ports and airports could:
    • Reduce material costs and variability for publicly financed housing through bulk purchasing and centralized storage.
    • Improve supply chain coordination, reduce delays, and stabilize procurement timelines.
    • Influence capital planning through potential public-private partnerships and new funding mechanisms.
  • The proposal emphasizes maintaining competition and avoiding displacement of private sector services, suggesting any model would consider market impacts and transition strategies.

Notes

  • This is a concurrent resolution focusing on study and feasibility rather than immediate policy enactment.
  • A final report with recommended legislative changes would be presented to the 2027 Legislature if pursued.

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

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