Requiring labor information on building permit applications could slow permitting

March 17, 2026, 9:30 a.m.
Hawaii State Capitol
Conference Room 309 and Videoconference

To: House Committee on Labor
     Rep. Jackson D. Sayama, Chair
     Rep. Mike Lee, Vice Chair

From: Grassroot Institute of Hawaii
          Ted Kefalas, Director of Strategic Campaigns

RE: TESTIMONY IN OPPOSITION TO SB2140 SD1 — RELATING TO COUNTY LABOR STANDARDS

Aloha Chair, Vice Chair and other Committee Members,

The Grassroot Institute of Hawaii opposes SB2140 SD1, which would allow the counties to require that certain wage, benefit and employment status information be disclosed on building permit applications.

This measure could slow Hawaii’s already glacial permitting process and would duplicate state efforts to enforce employment laws.

The Economic Research Organization at the University of Hawai’i has found that Hawaii’s average permit approval delay is more than three times the national average. Adding to these delays by requiring even more information from applicants could stymie efforts to build much-needed housing.

The UHERO report notes that “Extreme delays in permitting will generate significant costs and uncertainty for developers, creating a disincentive for new projects.”[1]

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii


Footnotes

  1. Rachel Inafuku, Justin Tyndall and Carl Bonham, “Measuring the Burden of Housing Regulation in Hawaii,” Economic Research Organization at the University of Hawai’i, April 14, 2022, p.7.

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