CONFERENCE COMMITTEE REP

CONFERENCE COMMITTEE REP. NO. 149-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2528

S.D. 1

H.D. 1

C.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2528, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to appropriate funds for the loss mitigation grant program and to modify program criteria relating to matching fund percentages and reimbursable costs.

The State's loss mitigation grant program was established to encourage the installation of wind resistive devices in residential property. The program reimburses homeowners for fifty per cent of their costs to purchase, install, and inspect wind resistive devices, up to a maximum amount of $2,100.

This measure reduces the State's match from fifty per cent to thirty-five per cent of the homeowner's cost, consistent with the thirty-five per cent solar energy system tax credit, repeals the authorization for reimbursement of inspection costs, and appropriates an unspecified amount in general revenues for the program.

Your Committee on Conference has amended this measure to:

(1) Appropriate $300,000 for fiscal year 2004-2005 for the loss mitigation grant program; and

(2) Require the Department of Commerce and Consumer Affairs to submit a report to the 2005 Legislature that:

(a) Outlines a plan to mitigate the future impact of a tropic storm or hurricane on the public's safety, the insurance markets, and the economy;

(b) Addresses how the Hawaii hurricane relief fund will be used to mitigate future damage from tropical storms and hurricanes; and

(c) Lists each insurer that offers wind damage coverage and the approaches that each insurer is taking towards hazard mitigation.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2528, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2528, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ DWIGHT Y. TAKAMINE, Chair		____________________________ RON MENOR, Co-Chair
		____________________________ BRIAN T. TANIGUCHI, Co-Chair