STAND. COM. REP. NO. 888

Honolulu, Hawaii

RE: S.B. No. 1166

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 1166, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

beg leave to report as follows:

The purpose and intent of this measure is to allow persons and insurers to recover damages for losses due to climate disasters and extreme weather attributable to climate change.

Specifically, this measure:

(1) Establishes specific causes of action for insurers, the Hawaii Property Insurance Association, and certain other persons to seek damages against a responsible party for harms resulting from climate disasters and extreme weather attributable to climate change; and

(2) Requires insurance rates of the Hawaii Property Insurance Association and private insurers to account for any proceeds obtained from those civil actions or subrogation claims.

Your Committees received written comments in support of this measure from the Sierra Club of Hawai`i, Center for Climate Integrity, and one individual.

Your Committees received written comments in opposition to this measure from the Hawaii Association for Justice and one individual.

Your Committees received written comments on this measure from the Attorney General; Department of Commerce and Consumer Affairs, Insurance Division; and Hawaii Property Insurance Association.

Your Committees find that climate disasters and extreme weather attributable to climate change pose risks to the health, safety, and security of Hawaii's residents and visitors. Your Committees further find that the State has a compelling interest in protecting its citizens from climate disasters and extreme weather attributable to climate change.

Your Committees have amended this measure by:

(1) Changing, from 1965 to an unspecified year, the year beginning in which, if a responsible party took certain actions within the State, the responsible party would be under the jurisdiction of the State for purposes of the civil causes of action established under this measure;

(2) Amending the measure's purpose section to conform with the measure's body; and

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

Your Committees respectfully request that future committees that deliberate on this measure consider the testimony of the Attorney General, which expressed concern that the provisions of this measure that authorize "any person" to seek damages against a responsible party may be found to be beyond the scope of this measure's title.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1166, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1166, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair