STAND. COM. REP. NO. 308-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2318

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2318, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HURRICANE PREPAREDNESS,"

begs leave to report as follows:

The purpose of this measure is to increase hurricane preparedness in Hawaii by allocating a portion of the monies earned through interest from the Hurricane Reserve Trust Fund to provide grants under a Safe Home Program, which would assist financially qualified home owners with the installation of approved wind resistive devices for hurricane preparedness of their homes.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii Emergency Management Agency, Hawaii Insurers Council, Zephyr Insurance Company, and one individual.

Your Committee finds that in the event of a wind-related disaster, such as a hurricane, one of the best practices to protect life and property is to fortify residential homes. Your Committee further finds that the Legislature previously incentivized the fortification of residential homes with the establishment of the Loss Mitigation Grant Program, which provided grants to cover part of the costs of installing wind resistive devices. This program, which began in September 2006, awarded four hundred nineteen individual grants and four condominium association grants, totaling $619,470 in total grant payout. The Loss Mitigation Grant Program was discontinued in 2008.

Your Committee notes that the Safe Home Program, as proposed by this measure, is a more robust program for ensuring the necessary fortification of homes than the Loss Mitigation Grant Program. However, concerns were raised as to whether the amounts of the grants were too generous and whether persons with higher incomes should be afforded the same level of grant as persons with lower incomes. Should your Committee on Finance consider this measure, your Committee respectfully requests that your Committee on Finance give consideration to these concerns.

Your Committee has amended this measure by:

(1) Repealing the authorizing statutes for the discontinued Loss Mitigation Grant Program; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2318, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 2318, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROY M. TAKUMI, Chair