STAND. COM. REP. NO. 218

Honolulu, Hawaii

RE:    S.B. No. 85

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Intergovernmental and Military Affairs, to which was referred S.B. No. 85 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to reduce flood losses, facilitate accurate insurance ratings and promote awareness of flood insurance.

     Specifically, this measure requires each county to adopt an ordinance to participate in the community rating system of the National Flood Insurance Program and appropriates an unspecified amount of funds to each county to assist in the implementation of this measure.

     Testimony in support of this measure was submitted by the Department of Defense and the Hawaii Association of Realtors.  Testimony in opposition of this measure was submitted by the Department of Planning and Permitting of the City and County of Honolulu.

     Your Committee finds this measure will help protect property rights and secure safe and livable communities throughout our State.  Participation in the National Flood Insurance Program will ensure more informed consumers and, in some cases, will provide discounts on flood insurance policy premiums to homeowners.

     This measure was amended to make the appropriate changes in section 46-1.5, Hawaii Revised Statutes, needed to reflect the repeal of chapter 201G, Hawaii Revised Statutes.  In addition, technical, nonsubstantive changes were made for the purposes of clarity and accuracy.

     As affirmed by the record of votes of the members of your Committee on Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 85, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 85, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Intergovernmental and Military Affairs,

____________________________

LORRAINE R. INOUYE, Chair