HB3292

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding two new sections to article 22 to be appropriately designated and to read as follows:

"§431:22-A Standards for the award of grants; earthquake resistive devices. (a) Subject to the availability of funds and the standards in this article, grants for earthquake resistive devices shall be awarded by the commissioner:

(1) That reimburse thirty-five per cent of costs incurred for the earthquake resistive devices and their installation, up to a maximum total reimbursement of $2,100 per dwelling;

(2) On a first-come, first-served basis, as determined by the commissioner; and

(3) For an earthquake resistive device or devices installed only in a single- or multi-family residential dwelling.

(b) Grants shall be awarded for the installation of the earthquake resistive devices that meet the description, specifications, guidelines, and requirements that shall be developed and determined by the commissioner in the commissioner's sole discretion. The commissioner, in the commissioner's sole discretion, may amend, narrow, or expand the definitions, description, specifications, and requirements of earthquake resistive devices.

(1) Has met the descriptions, specifications, guidelines, and requirements established by the commissioner for the grant program;

(2) Has filed a completed application form, as determined solely by the commissioner, together with all supporting documentation required by the commissioner;

(3) Has in the case of a building with multiple dwellings, filed together completed grant applications for all dwellings in the building, for installation of earthquake resistive devices;

(4) Has installed an earthquake resistive device or devices that meet the standards established by the state department of defense and that have been designated and approved by the commissioner;

(5) Has fully paid, prior to applying for the grant, the cost of the earthquake resistive device or devices, as well as the installation costs for which the grant is sought. The grant shall be used to reimburse only these costs or a portion thereof;

(6) Has hired an inspector, determined by the commissioner to be qualified in accordance with the requirements of the commissioner, who has verified in writing that the installation of the earthquake resistive device or devices is complete and is in compliance with the grant program specifications, guidelines, and requirements, as determined by the commissioner;

(7) Has installed the earthquake resistive device or devices after July 1, 2008;

(8) Has provided any other information deemed necessary by the commissioner; and

(9) Has met all additional requirements needed to implement the grant program as determined by the commissioner.

§431:22-B Appropriations; uses. Moneys appropriated for the loss mitigation grant program may be used to pay for the costs of administering, operating, and marketing the grant program, as determined by the commissioner."

SECTION 2. Section 431:22-101, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Earthquake resistive devices" means devices and techniques as identified and determined by the commissioner, in accordance with section 431:22-A, that increase a building's or structure's resistance to damage from earthquakes and seismic forces."

SECTION 3. Section 431:22-103, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431:22-103[]] Establishment of loss mitigation grant program. (a) The commissioner shall develop and implement a pilot grant program to encourage the installation of wind and earthquake resistive devices. The commissioner may spend up to $6,000,000 from the loss mitigation grant fund over three years for the grant program, which amounts shall include the costs of administering, operating, and marketing the grant program.

(b) For the first year of the grant program, the commissioner may make grants only to former policyholders of the Hawaii hurricane relief fund. From the second year onward, the commissioner may also make grants to all single or multi-family residential owners, which may include owners of townhouse units or condominium apartments under section 431:22-104(c)(3)."

SECTION 4. Section 431:22-104, Hawaii Revised Statutes, is amended to read as follows:

"§431:22-104 Standards for the award of grants[.]; wind resistive devices. (a) Subject to the availability of funds and the standards in this article, grants for wind resistive devices shall be awarded by the commissioner:

(1) That reimburse thirty-five per cent of costs incurred for the wind resistive devices and their installation, up to a maximum total reimbursement of $2,100 per dwelling;

(2) On a first-come, first-served basis, as determined by the commissioner; and

(3) For a wind resistive device or devices installed only in a single or multi-family residential dwelling.

(b) Grants shall be awarded for the installation of the following:

(1) Uplift restraint ties at roof ridges and roof framing members to wall or beam supports;

(2) Additional fastening of roof sheathing and roof decking for high wind uplift;

(3) Impact and pressure resistant exterior opening protective devices;

(4) Wall to foundation uplift restraint connections strengthening for wood foundation posts on footings; and

(5) Residential safe rooms.

The description, specifications, guidelines, and requirements for these wind resistive devices shall be further developed and determined by the commissioner in the commissioner's sole discretion. The commissioner, in the commissioner's sole discretion, may amend, narrow, or expand the definitions, description, specifications, and requirements of the wind resistive devices.

(1) Has met the descriptions, specifications, guidelines, and requirements established by the commissioner for the grant program;

(2) Has filed a completed application form, as determined solely by the commissioner, together with all supporting documentation required by the commissioner;

(3) Has, in the case of a building with multiple dwellings, filed together completed grant applications for all dwellings in the building, for installation of wind resistive devices indicated in section 431:22‑104(b)(1), (2), and (4); provided that this requirement does not apply to section 431:22‑104(b)(3);

(4) Has installed a wind resistive device or devices including residential safe room designs that meet the standards established by the state department of defense and that have been designated and approved by the commissioner;

(5) Has fully paid, prior to applying for the grant, the cost of the wind resistive device or devices, as well as the installation costs for which the grant is sought. The grant shall be used to reimburse only these costs or a portion thereof;

(6) Has hired an inspector, determined by the commissioner to be qualified in accordance with the requirements of the commissioner, who has verified in writing that the installation of the wind resistive device or devices is complete and is in compliance with the grant program specifications, guidelines, and requirements, as determined by the commissioner;

(7) Has installed the wind resistive device or devices after July 1, 2002;

(8) Has provided any other information deemed necessary by the commissioner; and

(9) Has met all additional requirements needed to implement the grant program as determined by the commissioner.

[~~(d) Moneys appropriated for the grant program may be used to pay for the costs of administering, operating, and marketing the grant program, as determined by the commissioner.~~]"

SECTION 5. The insurance commissioner, in consultation with the department of defense, shall develop criteria for earthquake resistive devices by January 1, 2009.

SECTION 6. There is appropriated out of the hurricane reserve trust fund of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the deposit into the loss mitigation grant fund.

SECTION 7. There is appropriated out of the loss mitigation grant fund of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the loss mitigation grant program established under chapter 431, article 22, Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 8. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	3292
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII