STAND. COM. REP. NO. 2743

Honolulu, Hawaii

RE: S.B. No. 2874

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2874 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Safe Home Program to provide matching and nonmatching grants for the installation of wind resistive devices to single-family, owner-occupied, residential property owners; and

(2) Create one temporary position within the Insurance Division of the Department of Commerce and Consumer Affairs to implement and administer the Safe Home Program.

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

Your Committee finds that homes that are retrofitted to make them more wind-resistant are less vulnerable to the effects of severe windstorms, hurricanes, and high wind damage. Fewer damage incidents resulting from such storms in turn result in lower or fewer insurance claims, which, over time, would reduce insurance premiums for Hawaii residents. Homeowners can experience considerable financial burdens to make their homes more wind resistant. Accordingly, this measure appropriates moneys earned through interest from the assets of the Hawaii Hurricane Relief Fund to the Safe Home Program Trust Fund to provide matching and non-matching grants according to the program to assist with the installation of wind resistive devices to qualified single-family, owner-occupied, residential property owners.

Your Committee has amended this measure by making technical, nonsubstantive procedural amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2874, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2874, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

ROSALYN H. BAKER, Chair