Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.C.R. No. 64 entitled:

begs leave to report as follows:

The purpose of this measure is to urge Hawaii's Congressional delegation to support and secure passage of federal legislation establishing a catastrophic reinsurance fund to support state efforts to keep homeowners' disaster insurance affordable.

Testimony in support of the measure was submitted by the Department of Commerce and Consumer Affairs. The Hawaii Association of Realtors submitted comments.

Your Committee finds that the federal legislation (the Homeowner's Insurance Protection Act of 2005) supported by this concurrent resolution would provide a federal backstop in the form of lower-cost reinsurance to encourage states to create a catastrophic fund to help homeowners obtain affordable insurance. Your Committee notes that the state fund contemplated by the federal legislation differs from that already enacted in the Hawaii hurricane relief fund. While recognizing that the intensity of large natural disasters in recent years requires increased federal assistance, your Committee finds that the intent and principal of the Hawaii hurricane relief fund should also be preserved.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 64, and recommends its adoption.