STAND. COM. REP. NO.  1610-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2783

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2783, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LOSS MITIGATION,"

begs leave to report as follows:

     The purpose of this bill is to promote efforts to protect against natural disasters by, among other things:

     (1)  Requiring the Insurance Commissioner to develop criteria for earthquake resistive devices;

     (2)  Requiring the Insurance Commissioner to provide grants for earthquake resistive devices, subject to the availability of funds, upon meeting certain standards;

     (3)  Including earthquake resistive devices in the Loss Mitigation Grant Program (Program);

     (4)  Appropriating funds for the Program;

     (5)  Extending the Program for three years;

     (6)  Increasing grant reimbursement amounts for wind resistive devices;

     (7)  Appropriating funds for a testing facility to test safe room designs and other wind resistant devices;

     (8)  Requiring the Insurance Division of the Department of Commerce and Consumer Affairs (DCCA) to develop a public awareness campaign on hazard mitigation;

     (9)  Requiring the State and each county to incorporate planning for natural hazards in land development processes;

    (10) Requiring and appropriating funds for the Department of Civil and Environmental Engineering of the University of Hawaii (UH) College of Engineering, in collaboration with the Social Science Research Institute of the UH College of Social Sciences, to prepare a strategic planning report on the feasibility of establishing comprehensive natural disaster hazard mapping for the State of Hawaii; and

    (11) Requiring the Insurance Commissioner to submit a report to the Legislature on the feasibility of converting the Hawaii Hurricane Relief Fund program into a natural disaster relief program.

     The Structural Engineers Association of Hawaii, Hawaii Lumber Products Association, Loss Mitigation Ad Hoc Group, Simpson Strong-Tie Company, Inc., and several concerned individuals supported this bill.  The Hawaii Association of REALTORS supported the intent of this measure.  DCCA opposed this bill.  A concerned individual provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2783, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair