STAND. COM. REP. NO. 1407

Honolulu, Hawaii

, 2021

RE: S.B. No. 1101

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1101, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose 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, in certain circumstances;

(2) Allocate a portion of the monies earned through interest from the Hurricane Reserve Trust Fund's assets to provide grants under the Safe Home Program; and

(3) 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; Hawaii Green Infrastructure Authority; Hawaii State Energy Office; Hawaii Emergency Management Agency; Office of Climate Change, Sustainability and Resiliency of the City and County of Honolulu; Hawaii Insurers Council; Climate Protectors Hawaii; and two individuals. Your Committee received comments on this measure from the State Procurement Office and American International Group, Inc.

Your Committee finds that Hawaii is susceptible to property loss resulting from hurricanes, tropical storms, and strong winds. The best long-term solution to reducing potential damage is to strengthen residential homes through the installation of wind resistive devices. However, your Committee further finds that the costs associated with inspection, repair, and reinforcement of residences that would make homes more hurricane resistant may discourage homeowners from making the investment. Your Committee also finds that it is in the interests of public health, safety, and welfare to establish a program to provide grants to certain property owners for the installation of wind resistive devices, approved by the Insurance Commissioner, that will lessen the severity of property loss from strong winds.

Your Committee has amended this measure by:

(1) Specifying that the administration of the Safe Home Program, other than grant awards, is subject to the Hawaii Public Procurement Code; 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 S.B. No. 1101, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1101, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

AARON LING JOHANSON, Chair