SECTION
1. The legislature finds that Hawaii is
susceptible to property loss due to hurricanes, tropical storms, and strong
winds. The best long-term solution to
reducing potential damage is the statewide use of wind resistive devices. The
legislature also finds that residents in this State must inspect, repair, and
reinforce their residences every year to prepare for the possibility of a
hurricane making landfall. The
inspection, repair, and reinforcement of their residences consume needed
resources from homeowners' budgets but result in homeowners having more
hurricane-resistant residences. This, in
turn, contributes to reduced hurricane damage repair costs and may qualify
homeowners for much-needed hurricane insurance premium credits.
The
legislature finds that the program will serve a public purpose by protecting the
health, safety, and welfare of Hawaii residents. The installation of wind resistive devices
will help reduce the incidence and severity of personal injury and property
damage in the event of a hurricane, thereby preserving human life and property
values and minimizing disruptions to the State's economy, business activity,
and delivery of public services. The
program will also serve the public purpose of stimulating economic growth and
activity in the State by creating business and employment opportunities for the
sale and installation of wind resistive devices.
The
legislature finds that the hurricane reserve trust fund was part of a
"new, creative, and flexible" mechanism to provide hurricane
insurance to Hawaii residents in the aftermath of Hurricane Iniki. See
Act 339, Session Laws of Hawaii 1993.
After its inception, the fund helped stabilize Hawaii's weak hurricane
insurance market, yielded the hurricane insurance market to the private sector,
and entered a state of dormancy ready to be reactivated when needed.
The
legislature also finds that the fund has assets that currently generate
approximately $3,000,000 dollars annually in interest, which is deposited into
the general fund for unrestricted use.
The
purpose of this bill is to continue to develop new, creative, and flexible
mechanisms that will increase hurricane preparedness in Hawaii. This Act allocates a portion of the moneys
earned through interest from the fund's assets to provide grants under a safe
home program. This program will financially
assist qualified homeowners with the installation of approved wind resistive
devices for hurricane preparedness of their homes.
SECTION
2. Chapter 431P, Hawaii Revised
Statutes, is amended by adding a new part to be appropriately designated and to
read as follows:
§
431P-A Definitions.
As used in this part:
"Mitigation"
means actions undertaken to reduce losses that may result from a hazard.
"Wind
resistive devices" means devices and techniques, as identified and
determined in accordance with section 431P-F(b), that increase a building's or
structure's resistance to damage from wind forces.
§431P-B Establishment of safe home program. (a) The commissioner shall develop and implement
a program to be designated as the safe home program and to encourage the
installation of wind resistive devices.
The program may award matching or nonmatching grants to eligible
applicants based upon the availability of funds.
(b) This part does not create an entitlement for
property owners or obligate the State in any way to fund the inspection or
retrofitting of residential property in the State.
§431P-C Safe home program trust fund. (a) There is established a special fund to be
designated as the safe home program trust fund.
Moneys transferred to the safe home program trust fund may be expended
by the commissioner to carry out the commissioner's duties and obligations
under this part.
(b) The safe home program trust fund may be used
by the commissioner to make grants authorized under this part. Matching and nonmatching grants awarded under
section 431P -E from the safe home program trust fund shall not be subject to
chapter 42F, 91, 103D, or 103F.
(c) The safe home program trust fund may also be
used by the commissioner to pay for any administrative, personnel, operational,
and marketing costs associated with the program.
(d) Upon termination of the safe home program,
any balances in the safe home program trust fund will be reverted to the
general fund.
§431P-D Eligibility for safe home program. (a) To be eligible for the program, a residential
property must be:
(1) The applicant's primary legal residence;
(2) Owned and occupied by the applicant;
(3) A single-family, owner-occupied residential
property; and
(4) A residential property covered by a current
homeowners or dwelling insurance policy that:
(A) Is issued by an insurer licensed in the State
or a surplus lines insurer, where the policy is lawfully placed by a broker
authorized to do business in the State; and
(B) Provides insurance coverage of the residential
property equal to or greater than the fair market value of the residential
property.
§431P-E Matching and nonmatching grants. (a) The commissioner may award matching or
nonmatching grants based upon the availability of funds.
(b) To be eligible for a nonmatching grant award,
the applicant must have an annual adjusted gross household income that does not
exceed eighty per cent of the median annual adjusted gross income for
households within the county in which the person or family resides, as
determined by the applicant's most recent federal income tax return. The nonmatching grant award shall not exceed
$6,500.
(c) An applicant with an annual adjusted gross
household income that exceeds eighty per cent of the median annual adjusted
gross income for households within the county in which the person or family
resides, as determined by the applicant's most recent federal income tax return,
may be eligible for a matching grant award.
The matching grant award shall not exceed $5,200 and must be matched on
a dollar-for-dollar basis by the applicant.
(d) The commissioner shall issue an annual
bulletin that sets forth the maximum grant award amounts based on the total
annual adjusted gross household income of the applicant and adjusted for family
size relative to the county area median income or the state median family
income, whichever is higher, as published annually by the United States Department
of Housing and Urban Development.
(e) Any grant issued by the program shall not
exceed a total of $5,200 for matching grants, and a total of $6,500 for
nonmatching grants. Any cost of the
mitigation project that exceeds the amount of the grant award shall be the
responsibility of the applicant.
§431P-F Standards for the award of grants. (a) Subject to the availability of funds and the
standards in this part, grants for wind resistive devices shall be awarded by
the commissioner:
(1) On a first-come, first-served basis, as
determined by the commissioner; and
(2) For a wind resistive device or devices
installed only in a single-family residential dwelling.
(b) Grants shall be awarded for the installation
of the following:
(1) Roof deck attachment;
(2) Secondary water barrier;
(3) Roof covering;
(4) Brace gable ends;
(5) Reinforced roof-to-wall connections;
(6) Opening protection;
(7) Exterior doors, including garage doors;
(8) Tie downs;
(9) Improvements that mitigate problems associated
with weakened trusses, studs, and other structural components; and
(10) Any other wind resistive devices approved by
the commissioner.
The commissioner, in the
commissioner's sole discretion, may amend, narrow, or expand by rule the definitions,
descriptions, specifications, and requirements of the wind resistive devices.
(c) In addition, a grant may be made to an
applicant only if the applicant has:
(1) Undergone an acceptable wind certification and
hurricane mitigation inspection in accordance with the program requirements;
(2) Filed a completed application form, as
determined solely by the commissioner, together with all supporting
documentation required by the commissioner;
(3) Installed the wind resistive device or devices
in accordance with the program requirements;
(4) Provided any other information deemed
necessary by the commissioner; and
(5) Met all additional requirements needed to
comply with the grant program as determined by the commissioner.
§431P-G Annual report. The commissioner
shall prepare an annual report to the director, governor, and legislature on
the use of the safe home program trust fund.
The report shall provide statistical information on program
participation. The report shall be submitted
to the legislature no later than twenty days prior to the convening of each
regular legislative session.
§431P-H Rules.
The commissioner may, in accordance with
chapter 91, adopt reasonable rules as are necessary or proper to carry out the
purposes of this part."
SECTION
3. Section 431P-16, Hawaii Revised
Statutes, is amended by amending subsection (i) to read as follows:
"(i)
Moneys in the hurricane reserve trust
fund may be disbursed upon dissolution of the Hawaii hurricane relief fund;
provided that:
(1) The net moneys in the hurricane reserve trust
fund shall revert to the general fund after payments by the fund on behalf of
licensed property and casualty insurers or the State that are required to be
made pursuant to any federal disaster insurance program enacted to provide
insurance or reinsurance for hurricane risks are completed; and
(2) If such moneys are paid on behalf of licensed
property and casualty insurers, payment shall be made in proportion to the
premiums from policies of hurricane property insurance serviced by the insurers
in the twelve months prior to dissolution of the fund;
provided that [all] interest
earned from the principal in the hurricane reserve trust fund shall be
transferred and deposited [into the general fund each year that the
hurricane reserve trust fund remains in existence.] in the following
manner: $1,000,000 into the safe home program trust fund established pursuant
to section 431P-C for fiscal year 2020-2021; and the remaining interest into
the general fund each year that the hurricane reserve trust fund remains in
existence."
SECTION
4. Section 431P-16.5,
Hawaii Revised Statutes, is amended to read as follows:
"§431P-16.5
Immunity. There shall be no
cause of action, claim for damages or relief, charge, or any other liability [of
any kind whatsoever] created against the State, the Hawaii hurricane relief
fund, the commissioner, or their respective agents, employees, or board, by[,]
or relating to the loss mitigation grant program[.] and the safe
home program."
SECTION
5. The commissioner is authorized to
establish and fill one temporary position, not subject to chapter 76, Hawaii
Revised Statutes, to be employed within the insurance division for
implementation and administration of the safe home program. The hiring of the position shall be
appropriated out of the safe home program trust fund. There is appropriated out of the safe home
program trust fund the sum of $1,000,000 or so much thereof as may be necessary
for fiscal year 2020-2021 to develop and implement the grant program
established under this Act. The sum
appropriated shall be expended by the insurance commissioner for the purposes
of this Act.
SECTION
6. There shall be no cause of action,
claim for damages or relief, charge, or any other liability of any kind created
against the State, the Hawaii hurricane relief fund, the Hawaii hurricane
relief fund's board and its members, or their respective agents, or employees,
by or relating to the transfer of any moneys from the hurricane reserve trust
fund to the general fund or to the safe home program trust fund.
SECTION
7. In codifying the new sections added
to chapter 431P, Hawaii Revised Statutes, by section 2 of this Act, the revisor
of statutes shall substitute appropriate section numbers for the letters used
in designating and referring to the new sections in this Act.
SECTION
8. Statutory material to be repealed is
bracketed and stricken. New statutory
material is underscored.
SECTION
9. This Act shall take effect upon its
approval.
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BY REQUEST |