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 S.C.R. No. 217 entitled:

begs leave to report as follows:

The purpose of this measure is to request the counties to adopt ordinances to participate in the National Flood Insurance Program Community Rating System to obtain monetary discounts in purchasing flood insurance.

Testimony in support of this measure was submitted by the Hawaii Association of Realtors. No testimony in opposition was received by your Committee.

Your Committee finds that all the counties should participate in the Community Rating System of the National Flood Insurance Program. The Community Rating System is a voluntary program designed to encourage community floodplain management activities that exceed minimum National Flood Insurance Program standards. Currently, Maui county is the only county that participates in the Community Rating System. Your Committee further finds that Maui residents benefit from this participation with a five percent discount on policies for low to moderate flood risk areas and a ten percent discount for policies for high risk flood areas.

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 S.C.R. No. 217 and recommends its adoption.