Establishes hurricane resistant building code for state buildings; requires developers to install siren warning devices in developments; provides wind resistant devices income tax credit; establishes rebuttal presumption in favor of undergrounding utilities in tsunami-prone areas; clarifies governor's duties in deploying national guard; allocates funds from FY06 to establish emergency cache; prohibits profiteering and price gouging; creates residential disaster assistance special fund and makes appropriation; makes appropriations for emergency shelter spaces, loss mitigation grant program, and civil defense warning sirens.

A BILL FOR AN ACT

PART I

SECTION 1. The legislature finds that the State must have a comprehensive emergency preparedness program to mitigate hazards, enhance preparedness for major disasters, and accelerate response and recovery when disaster strikes. The goal is to enhance and fortify the State's ability to save lives and protect property in the event of disaster.

The legislature initiated the civil defense preparedness effort by enacting Act 5, Session Laws of Hawaii Sp. Sess. 2005, to appropriate funds for natural disaster preparedness efforts, including:

Act 5 also amended the definition of "wind resistive devices" to allow "safe rooms" to qualify for the loss mitigation grant program.

According to the state civil defense agency, hazards and disasters include hurricanes, flash floods, tsunamis, earthquakes, volcanoes, subsidence of land or landslides; urban fires, power failures, wild fires, hazardous material situations, droughts, aircraft accidents, tornadoes and water spouts, dam failures, radiological incidences, terrorism, and civil disorders.

The duties and responsibilities of state and county civil defense are expansive. Chapter 127, Hawaii Revised Statutes, relating to disaster relief, defines "disaster relief" as:

Chapter 128, Hawaii Revised Statutes, relating to civil defense and emergency Act, provides for the defense of the State from enemy attack, sabotage, and other hostile action to protect the public health, safety, and welfare. The related defense services include fire fighting services, police services, medical and health services, rescue engineering, air raid warning services, communications, radiological, chemical, and other special weapons defense, evacuation of persons from stricken or danger areas, or from security areas established by or under the authority of the United States, emergency housing and other emergency welfare services, emergency transportation, protection of important installations, and other functions related to civilian protection, together with all other activities necessary or incidental to the preparation for and carrying out of the foregoing functions.

The legislature further finds that current concerns and challenges for the State civil defense are the lack of emergency spaces throughout the State, evacuation of tourists and residents, evacuation of the special needs population, special needs emergency shelters, develop and maintenance of plans, public awareness and involvement, and the avian flu pandemic.

The legislature further finds that emergency and disaster preparedness basically involves continuous planning, effective and efficient response including evacuation, training, and the development of infrastructure and warning systems. To make this happen, coordinated effort and planning are necessary over a broad spectrum of public and private entities, including the state, counties, federal government, national guard, law enforcement, and hospitals. The aim is prevention, protection, response, and recovery.

The purpose of this Act is to enhance the State's civil defense responsiveness efforts to protect the public health, safety, welfare, and property.

PART II

BUILDING CODE FOR STATE BUILDINGS

SECTION 2. State buildings must comply with county building codes. The degree of hurricane protection afforded by county building codes varies from county to county. For reasons of public safety, state buildings need to conform to a uniform standard to afford sufficient hurricane protection.

The purpose of this part is to require the department of accounting and general services to adopt an administrative rule to serve as a uniform standard of construction for state buildings.

SECTION 3. Chapter 107, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§107-   State building design and construction. (a) The department of accounting and general services shall adopt rules pursuant to chapter 91 to provide a building code for state-owned buildings, including but not limited to, public school facilities. The code shall include hurricane protection standards that exceed wind speed values as contained in the uniform building code of 1997.

(b) Upon adoption of rules under subsection (a), the State shall be exempted from county building codes for state-owned buildings."

PART III

NEW DEVELOPMENT PROJECTS

SECTION 4. Developers are not required to install civil defense siren warning devices in residential property development projects. The construction of new residential communities exacerbates the problem of siren gaps. Residents in these new communities do not have the life and property saving advantage of early warning sirens to alert them to natural or man-made hazards such as tsunami and hurricane.

Many new residential communities have community facilities, commonly known as community recreational centers, which can be put to good use in emergencies if designed and constructed to serve a dual purpose as emergency hurricane shelters.

The purpose of this Act is to:

SECTION 5. Chapter 127, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§127-   Residential development projects; civil defense preparedness. (a) Beginning July 1, 2006, the developer of a development or a residential project shall:

(b) Beginning July 1, 2006, the developer of an existing development or residential project shall install emergency siren systems within the development or residential project.

(c) As used in this section:

"Community facilities" includes real and personal property, and buildings, equipment, lands, and grounds for recreational or social assemblies, for educational, health, or welfare purposes and necessary or convenient utilities, when designed primarily for the benefit and use of the occupants of the dwelling.

"Developer" and "development" shall have the same meaning as in section 46-141.

"Hurricane resistant criteria" means wind speed values as contained in the Uniform Building Code of 1997, as amended.

"Residential project" shall have the same meaning as in section 206E-2."

PART IV

TAX CREDITS FOR HOMEOWNERS

SECTION 6. Current law provides grants to homeowners pursuant to chapter 431:22, Hawaii Revised Statutes, relating to the loss mitigation grant program, for the installation of wind resistive devices, including "safe rooms." Act 5, Session Laws of Hawaii Sp. Sess. 2005, added "safe rooms" to the definition of "wind resistive devices." Safe rooms located in individual residences would relieve the burden on public shelters during times of emergency. However, the construction of safe rooms can be expensive.

The legislature finds that tax credits for the installation of wind resistant devices would provide additional incentives to motivate homeowners to protect their property.

The purpose of this part is to provide an income tax credit for the installation of wind resistive devices.

SECTION 7. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Wind resistive devices tax credit. (a) There shall be allowed to each taxpayer, subject to the tax imposed by this chapter, an income tax credit for the installation of a wind resistive device, as defined in section 431:22-101, that qualifies for a grant under section 431:22-104. The wind resistive devices tax credit shall be in addition to any grant awarded to the taxpayer under chapter 431:22. The credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) If the tax credit allowed under subsection (a) exceeds the taxpayer's net income tax liability, the excess of credit over liability shall be refunded to the taxpayer; provided that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(c) All claims for tax credits under this section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(d) Application for the hurricane resistant devices tax credit shall be upon forms provided by the department of taxation."

PART V

UNDERGROUND ELECTRIC TRANSMISSION LINES

SECTION 8. The purpose of this part is to establish a rebuttable presumption in favor of placing electric transmission systems below the surface of the ground in tsunami-prone areas.

SECTION 9. Section 269-27.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, whenever a public utility applies to the public utilities commission for approval to place, construct, erect, or otherwise build a new forty-six kilovolt or greater high-voltage electric transmission system, either above or below the surface of the ground, the public utilities commission shall determine whether the electric transmission system shall be placed, constructed, erected, or built above or below the surface of the ground; provided that in tsunami-prone areas as determined by the state department of defense, there shall be a rebuttable presumption in favor of placement below the surface of the ground; and provided further that in its determination, the public utilities commission shall consider:

(5) Any other relevant factors."

PART VI

NATIONAL GUARD DEPLOYMENT

SECTION 10. It has been reported that more than eighty-eight per cent of the 3,000 member Hawaii national guard division have been called to active duty since September 11, 2001, the highest ratio of reservists and National guard soldiers of any state in the country. The legislature finds that the disproportionately large deployment of Hawaii's citizen soldiers has virtually gutted out the manpower and effectiveness of the Hawaii national guard to respond to state emergencies. The legislature further finds that if a tsunami or hurricane were to hit Hawaii, there would be insufficient national guard troops to assist in evacuation, relief, and protection of property.

The governor, along with the President of the United States, has statutory authority vested by reason of section 121-30, Hawaii Revised Statutes, to call the national guard to active duty service.

The purpose of this Act is to clarify the governor's authority to call the national guard to active service. SECTION 11. Section 121-30, Hawaii Revised Statutes, is amended to read as follows:

"§121-30 Order to active service[.]; governor's duty. (a) In case of war, insurrection, invasion, riot, or imminent danger thereof, or any forcible obstruction to the execution of the laws, or reasonable apprehension thereof, or for assistance to civil authorities in disaster relief or civil defense, the governor may order the national guard or other component of the militia or any part thereof into active service. The governor or the governor's designated representative also may order the national guard into active service in nonemergency situations for duty and training in addition to the drill and instruction required by section 121-8.

(b) The governor shall not order the national guard or other component of the militia or any part thereof into active service pursuant to subsection (a) if, as a result, more than       per cent of the national guard would be in active service at any one time.

(c) If, as a result of an order by the President of the United States directing any members of the Hawaii national guard to report to active service, the percentage under subsection (b) would be exceeded, the governor, with the assistance of the adjutant general, shall immediately:

PART VII

AMELIORATION OF PHYSICAL DISASTERS

SECTION 12. The state civil defense does not have an inventory of emergency supplies and equipment to support disaster relief operations. An emergency supply cache is needed to support disaster victims and communities that may become isolated due to natural hazards such as floods, landslides, and hurricane winds. An emergency cache under the control of state civil defense should include portable generators, water, ready-to-eat meals, plastic sheeting, cots, blankets, and other relief supplies. The emergency cache should be equipped to support up to 5,000 disaster victims for a seventy-two hour period at any one time. Therefore, funding needs to be continuous due to depletion in supplies from any disaster at any time.

Although the Federal Emergency Management Agency logistics center in Halawa Valley stores generators, tarps, tents, and other supplies, these commodities are not available to the State unless a presidential disaster declaration is in effect. A state emergency supply cache will be used in a state disaster or federally declared disaster to provide immediate disaster relief to affected areas.

The purpose of this part is to allocate funds from the 2006-2007 fiscal year budget to establish an emergency supply cache.

SECTION 13. Act 178, Session Laws of Hawaii 2005, is amended by amending section 67 to read as follows:

"SECTION 67. Provided that of the general fund appropriation for amelioration of physical disasters (DEF 110), the sum of $500,000 for fiscal year 2005-2006 and the sum of [$500,000] $1,500,000 for fiscal year 2006-2007 shall be expended for relief ($500,000) and to establish an emergency cache ($1,000,000), from major disasters pursuant to chapter 127-11, Hawaii Revised Statutes; provided further that the department of defense shall notify the legislature within five business days of any expenditure of these funds by submitting a report detailing the date, reason, and amount of the expenditure; and provided further that any funds not expended for this purpose shall be lapsed to the general fund."

PART VIII

PROFITEERING AND PRICE GOUGING

SECTION 14. The legislature finds that during emergencies and major disasters, including, but not limited to, earthquakes, fires, floods, or civil disturbances, some merchants may take advantage of consumers by greatly increasing prices for essential commodities and services. While the pricing of commodities and services is best left to the marketplace under ordinary conditions, when a declared state of disaster results in abnormal disruptions of the market, the public interest requires that excessive and unjustified increases in the prices of essential commodities and services be prohibited and punished. It is the intent of the legislature to protect the public from excessive and unjustified increases in prices charged during or after a declared state of disaster for commodities and services that are vital and necessary for the health, safety, and welfare of the public. The purpose of this bill is to:

SECTION 15. Section 209-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Services" shall mean any work, labor, or services furnished in connection with the sale or renovation of real or personal property."

SECTION 16. Section 209-9, Hawaii Revised Statutes, is amended to read as follows:

"§209-9 Rental or sale of essential commodities during a state disaster; prohibition against price increases. (a) Whenever the governor declares a state disaster for the entire State or any portion thereof, or when the State, or any portion thereof, is the subject of a severe weather warning:

As used in this section, "breach of a material term" means the failure of a party to perform an obligation under the rental agreement which constitutes the consideration for entering into the contract and includes the failure to make a timely payment of rent. For the purpose of this subsection:

"Fixed term lease" means a lease for real property that specifies its beginning date and its termination date as calendar dates, or contains a formula for determining the beginning and termination dates; and the application of the formula as of the date of the agreement will produce a calendar date for the beginning and termination of the lease.

"Periodic tenancy" means a tenancy wherein real property is leased for an indefinite time with monthly or other periodic rent reserved. A periodic tenancy may be created by express agreement of the parties, or by implication upon the expiration of a fixed term lease when neither landlord nor tenant provides the other with written notice of termination and the tenant retains possession of the premises for any period of time after the expiration of the original term.

"Unfit for occupancy" means that a residential dwelling unit has been damaged to the extent that the appropriate county agency determines that the unit creates a dangerous or unsanitary situation and is dangerous to the occupants or to the neighborhood.

(b) Notwithstanding this section, any additional operating expenses incurred by the seller or landlord because of the state disaster, and which can be documented, may be passed on to the consumer. In the case of a residential dwelling unit, if rent increases are contained in a written instrument which was signed by the tenant prior to the disaster declaration or severe weather warning, the increases may take place pursuant to the written instrument.

(c) The prohibitions under subsection (a) shall remain in effect until twenty-four hours after the severe weather warning is canceled by the National Weather Service; or in the event of a disaster declaration, until the declaration is altered, amended, revised, or revoked by the governor.

(d) In any action against a merchant, landlord, or other business for violation of the price limitations in this section, the defendant shall be deemed not to have violated this section if the defendant proves all of the following:

(e) Any violation of this section: [shall]

PART IX

DISASTER ASSISTANCE FUND

SECTION 17. The legislature finds that major flooding events over the recent years have demonstrated a need to establish a disaster assistance program to assist residents and businesses in their recovery efforts. Although federal programs are available, a statewide flooding event may not result in a presidential disaster proclamation for every affected county.

Current law in section 209-34, Hawaii Revised Statutes, relating to the state disaster revolving loan fund, authorizes the department of business, economic development, and tourism to make commercial and personal loans for losses suffered from natural disasters. However, the requirements for a loan may disqualify many would-be borrowers from applying for a loan. The result is that many victims go uncompensated for their losses, which may not be fully compensated by insurance, as in the 2004 Manoa flood disaster.

The purpose of this Act is to establish a disaster assistance special fund to provide immediate relief to disaster victims who are not eligible to receive funding from other government disaster assistance programs or sources.

SECTION 18. Chapter 209, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§209-   Residential disaster assistance special fund. (a) There is established within the state treasury a special fund to be known as the residential disaster assistance special fund. The special fund shall be administered and expended by the department of business, economic development, and tourism in accordance with this section.

(b) The department shall expend the special fund to provide reimbursement to applicants who, as a result of a State disaster:

(c) An applicant shall be eligible to receive compensation for loss, resulting from a state disaster, under this section if the applicant is a natural person and the owner of the damaged dwelling; provided that an applicant may apply for compensation for not more than one damaged dwelling.

(d) Compensation for loss to any one applicant under this section shall not exceed $          . The department may expend moneys from the fund without an appropriation by the legislature. Any insurance proceeds received by the applicant for a loss as a result of a natural disaster, as defined in section 171-85, shall be deducted from the amount payable to the applicant under this subsection if the applicant's compensation from the special fund exceeds the applicant's insurance compensation, if any. If the compensation from the special fund is not more than the insurance compensation, the applicant shall be entitled to compensation from the special fund in an amount that does not exceed the difference between the amount of the insurance compensation and the actual loss suffered.

(e) For purposes of calculating the amount of compensation to each applicant, the department shall:

(f) The department shall establish procedures and a deadline for filing an application after the occurrence of a state disaster.

(g) The special fund shall consist of moneys appropriated for deposit into the fund for purposes of this section; provided that no unexpected or unencumbered moneys shall lapse into the general fund."

SECTION 19. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, for deposit into the disaster assistance special fund under section 209- , Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 20. This part, upon the approval of this Act, shall apply retroactive to natural disasters occurring on or after October 30, 2004.

PART X

EMERGENCY SHELTER SPACE APPROPRIATION

SECTION 21. The state civil defense agency estimates the cost to retrofit public buildings, such as installation of wind resistant screens and doors, and to create more emergency shelter spaces in the State is $35,000,000. The appropriation contained in this part for $4,000,000 would reduce the current target shortfall of emergency shelter spaces by about 30,000, as well as shore up public facilities to meet the requirements of the special needs population.

The purpose of this part is to make an appropriation for more emergency shelter space.

SECTION 22. There is appropriated out of the general revenues of the State of Hawaii the sum of $4,000,000, or so much thereof as may be necessary for fiscal year 2006-2007, retrofit public buildings to increase the number of emergency shelter spaces and to shore up public facilities to meet the needs of special needs population groups.

The sum appropriated shall be expended by the department of defense for the purposes of this Act.

PART XI

LOSS MITIGATION GRANT PROGRAM APPROPRIATION

SECTION 23. The loss mitigation grant program under section 431:22-103, Hawaii Revised Statutes, was enacted by Act 179, Session Laws of Hawaii 2002, to assist residents with installing wind resistant devices to protect their residential property against hurricanes. The intent of the program is to reduce the incidence and severity of personal injury and property loss. Act 5, Session Laws of Hawaii Sp. Sess. 2005, appropriated $2,000,000 in each fiscal year of the fiscal biennium out of the hurricane reserve trust fund for deposit into the loss mitigation grant fund under section 431:22-102, Hawaii Revised Statutes. The legislature finds that the appropriation for fiscal year 2006-2007 needs to be increased by $4,000,000, to encourage more homeowners to protect their homes from hurricane. The purpose of this part is to make an appropriation of the general fund for the loss mitigation grant program.

SECTION 24. There is appropriated out of the general revenues of the State of Hawaii the sum of $4,000,000, or so much thereof as may be necessary for fiscal year 2006-2007, for deposit into the loss mitigation grant fund, to supplement the appropriation out of the hurricane reserve trust fund for fiscal year 2006-2007, under section 12 of Act 5, Session Laws of Hawaii Sp. Sess. 2005.

The sum appropriated shall be expended by the department of defense for the purposes of this Act.

PART XII

CIVIL DEFENSE WARNING SIRENS APPROPRIATION

SECTION 25. The State civil defense will install new warning sirens in existing gap areas and replace older sirens throughout the State. The estimate for the total cost is $16,000,000, pro rated over a six-year period.

The purpose of this part is to make a capital improvements appropriation to install new warning sirens in gap areas and to replace older sirens throughout the State.

SECTION 26. The director of finance is authorized to issue general obligation bonds in the sum of $2,500,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2006-2007, for the purpose of capital improvement projects to install new civil defense warning sirens in gap areas and to replace older sirens statewide, as part of a six-year incremental and pro-rated capital improvement project, specifically for plans, land acquisition, design, construction, replacement, and equipment relating to disaster warning systems and communication devices.

The sum appropriated for the capital project set forth in this section shall be expended by the department of accounting and general services for the purposes of this Act.

PART XIII

SECTION 27. In codifying this Act, the revisor of statutes shall substitute the appropriate section designations for the letter designations used in this Act.

SECTION 28. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 29. This Act shall take effect upon its approval; provided that sections 13, 19, 22, 24, and 26 shall take effect on July 1, 2006.