Regulatory Processes

Repeals the law that automatically approves applications for
business or development-related permits, licenses, and approvals
that are not granted or denied within a maximum time period.
Requires an affirmative vote by a board or commission to approve
a business or development-related permit, license, or approval.

THE SENATE                              S.B. NO.           19
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 91-13.5, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "[[]91-13.5[]]  Maximum time period for business or
 4 development-related permits, licenses, or approvals; [automatic
 5 approval;] extensions.(a)  Unless otherwise provided by law, an
 6 agency shall adopt rules that specify a maximum time period to
 7 grant or deny an application for a business or development-
 8 related permit, license, or approval[; provided that the
 9 application is not subject].  This subsection shall not apply to
10 state administered [permit] programs that are delegated,
11 authorized, or approved under federal law.
12      (b)  All such issuing agencies shall clearly articulate the
13 informational requirements for these applications and shall
14 review the applications for completeness in a timely manner.
15      (c)  All such issuing agencies shall [take action to] grant
16 or deny [any] an application for a business or development-
17 related permit, license, or approval within the [established]
18 specified maximum time period [of time, or the application shall

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 1 be deemed approved].
 2      (d)  If a timely vote is conducted by a state or county
 3 board or commission on an application that would otherwise be
 4 approved by operation of law if the board or commission failed to
 5 act within a specified maximum time period, the application shall
 6 be deemed to be approved only if a simple majority of all board
 7 or commission members to which the board or commission is
 8 entitled so approve the application, unless a greater majority is
 9 otherwise specifically required by law for approval.
10      In the event of a conflict between this subsection and
11 section 183C-6(b) or 201G-118(a)(4), this subsection shall
12 control.
13     [(d)] (e)  The maximum period of time established pursuant to
14 this section shall be extended in the event of a national
15 disaster, state emergency, or union strike, which would prevent
16 the applicant, the agency, or the department from fulfilling its
17 application or review requirements.
18     [(e)] (f)  For the purposes of this section, "application for
19 a business or development-related permit, license, or approval"
20 means any state or county application, petition, permit, license,
21 or certificate, or any other form of a request for approval,
22 required by law to be obtained prior to the formation, operation,

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                                     S.B. NO.           19

 1 or expansion of a commercial or industrial enterprise[, or for
 2 any permit, license, certificate, or any form of approval
 3 required under sections 46-4, 46-4.2, 46-4.5, 46-5, and chapters
 4 183C, 205, 205A, 340A, 340B, 340E, 340F, 342B, 342C, 342D, 342E,
 5 342F, 342G, 342H, 342I, 342J, 342L, and 342P]."
 6      SECTION 2.  Section 183C-6, Hawaii Revised Statutes, is
 7 amended by amending subsection (b) to read as follows:
 8      "(b)  The department shall render a decision on a completed
 9 application for a permit within one-hundred-eighty days of its
10 acceptance by the department.  [If] Except as provided in section
11 91-13.5(d), if within one-hundred-eighty days after acceptance of
12 a completed application for a permit, the department shall fail
13 to give notice, hold a hearing, and render a decision, the owner
14 may automatically put the owner's land to the use or uses
15 requested in the owner's application.  When an environmental
16 impact statement is required pursuant to chapter 343, or when a
17 contested case hearing is requested pursuant to chapter 91, the
18 one-hundred-eighty days may be extended an additional ninety days
19 at the request of the applicant.  Any request for additional
20 extensions shall be subject to the approval of the board."
21      SECTION 3.  Section 201G-118, Hawaii Revised Statutes, is
22 amended by amending subsection (a) to read as follows:

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 1      "(a)  The corporation may develop, on behalf of the State or
 2 with an eligible developer, or may assist under a government
 3 assistance program in the development of, housing projects which
 4 shall be exempt from all statutes, ordinances, charter
 5 provisions, and rules of any governmental agency relating to
 6 planning, zoning, construction standards for subdivisions,
 7 development and improvement of land, and the construction of
 8 units thereon; provided that:
 9      (1)  The corporation finds the project is consistent with
10           the purpose and intent of this chapter, and meets
11           minimum requirements of health and safety;
12      (2)  The development of the proposed project does not
13           contravene any safety standards, tariffs, or rates and
14           fees approved by the public utilities commission for
15           public utilities or the various boards of water supply
16           authorized under chapter 54; and
17      (3)  The legislative body of the county in which the project
18           is to be situated shall have approved the project.
19           (A)  The legislative body shall approve or disapprove
20                the project by resolution within forty-five days
21                after the corporation has submitted the
22                preliminary plans and specifications for the

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 1                project to the legislative body.  If on the forty-
 2                sixth day a project is not disapproved, it shall
 3                be deemed approved by the legislative body;
 4           (B)  No action shall be prosecuted or maintained
 5                against any county, its officials, or employees on
 6                account of actions taken by them in reviewing,
 7                approving, or disapproving the plans and
 8                specifications; and
 9           (C)  The final plans and specifications for the project
10                shall be deemed approved by the legislative body
11                if the final plans and specifications do not
12                substantially deviate from the preliminary plans
13                and specifications.  The final plans and
14                specifications for the project shall constitute
15                the zoning, building, construction, and
16                subdivision standards for that project.  For
17                purposes of sections 501-85 and 502-17, the
18                executive director of the corporation, or the
19                responsible county official may certify maps and
20                plans of lands connected with the project as
21                having complied with applicable laws and
22                ordinances relating to consolidation and

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 1                subdivision of lands, and the maps and plans shall
 2                be accepted for registration or recordation by the
 3                land court and registrar; and
 4      (4)  The land use commission shall approve or disapprove a
 5           boundary change within forty-five days after the
 6           corporation has submitted a petition to the commission
 7           as provided in section 205-4.  [If] Except as provided
 8           in section 91-13.5(d), if on the forty-sixth day the
 9           petition is not disapproved, it shall be deemed
10           approved by the commission."
11      SECTION 4.  Statutory material to be repealed is bracketed.
12 New statutory material is underscored.
13      SECTION 5.  This Act shall take effect upon its approval.
15                           INTRODUCED BY:_________________________