HB1474

HOUSE OF REPRESENTATIVES	H.B. NO.	1474
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to the insurance affordability assistance pilot program.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the rising cost of property insurance has placed a significant financial burden on homeowners in Hawaii, particularly those with limited incomes or those recovering from recent natural disasters. In light of these challenges, it is in the public interest to establish a temporary program to provide direct financial assistance to homeowners with demonstrated financial hardship who are facing unexpected increases in insurance premiums.

The purpose of this Act is to establish a temporary pilot program to assist eligible homeowners with unexpected increases in property insurance premiums by providing financial relief through a state-administered fund.

SECTION 2. (a) There is established within the insurance division of the department of commerce and consumer affairs a three-year insurance affordability assistance pilot program.

(b) The pilot program shall provide direct financial assistance to eligible homeowners to offset unexpected increases in property insurance premiums.

(1) Establish rules pursuant to chapter 91, Hawaii Revised Statues, regarding the procedures and requirements for the pilot program;

(2) Work with community organizations, local banks, and credit unions to raise awareness about the pilot program and facilitate access for underserved communities; and

(3) Submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027 and a final report to the legislature no later than twenty days prior to the convening of the regular session of 2028. The reports shall include:

(A) The number of pilot program applicants and recipients;

(B) The total funds disbursed; and

(d) For the purposes of this section:

"Eligible homeowner" means a homeowner who can demonstrate:

(1) An increase of at least twenty-five per cent in property insurance premiums compared to the immediately preceding policy period; and

(2) Financial hardship as determined through rules adopted by the department of commerce and consumer affairs pursuant to chapter 91, Hawaii Revised Statutes; provided that the financial hardship criteria shall include, at minimum:

(A) Household income at or below eighty per cent of the area median income as determined by the United States Department of Housing and Urban Development;

(B) Recent unemployment or loss of significant income;

(D) Fixed income status, including seniors or others relying on pension income, social security benefits, or similar income sources.

"Financial assistance" means a one-time assistance grant of up to $5,000 per household or a maximum of fifty per cent of the insurance premium increase, whichever is less.

(e) The pilot program shall cease to exist on June 30, 2028.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the compliance resolution fund.

SECTION 4. There is appropriated out of the compliance resolution fund the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the purposes of the insurance affordability assistance pilot program.

The sums appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2025, and shall be repealed on June 30, 2028.

INTRODUCED BY:	_____________________________