[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6358903,"mediaKeyId","2210712-5f3806ebe374c5090d8dab682156f160","parentId",2210712,"title","Senate commerce committee advances package of bills to address Hawaii property insurance crisis","audioSeconds",4765,"startMs",1745000,"endMs",6510000,"viewUrl","/Search/View?dp=1&key=2210712-5f3806ebe374c5090d8dab682156f160&start=1745&end=6510","thumbnailUrl","https://assets.pipeline.soar.com/2210712-5f3806ebe374c5090d8dab682156f160/thumbnail_1745000.jpg","articleUrl","/articles/6358903/Hawaii/Senate-commerce-committee-advances-package-of-bills-to-address-Hawaii-property-insurance-crisis","mediaUrl","https://secure.pipeline.soar.com/6358903-cea33134f2ab373793190ed1e18447e1/orig.mp4?Expires=1771176090&Signature=jDnWF86ZuPLwda3Hs2fyoIVrE1mjkxhbSff4Npj~EyijhYzo0a7R2HDlHXIivhDT8GthBiuHeQBGIkY5~0z2S5TnSOdSmbqpoC9XOBk8XWqxW66wFKxvTzGUO3IvwW1vkuOMFlhXkYnTBGspk23Zq2zwcerxm0AijiQbQGr3pTXYLTDGyz4VfjeC3DGvv-64A7FcNMI5WNHMdGzlRVdul~RXG9hOcNsgoDwVOTMVkxcnYBFpEW3rOCcw4PMZJOsBAvj9P7bpkmw9XmLphxWVaIxlcZYqriu8jfT110JJ8tuYUkmLaqBrjm1uYPKsYxNrLUQoES79ia9Taa~MVrZU5g__&Key-Pair-Id=KUT5TJCACFTXG","author","Senate Committee on Commerce and Consumer Protection","date","2025-02-01T09:18:56Z","article","The Senate Committee on Commerce and Consumer Protection on Jan. 31 advanced a set of bills intended to stabilize Hawaii's property insurance market, passing several measures with amendments, deferring others for further work and asking for follow-ups that could include requests for proposals to let private insurers bid to administer programs.

The measures respond to a multi-year disruption in the admitted property market that has pushed many condominium associations and homeowners into the surplus (nonadmitted) market and produced steep premium increases, testimony and regulators said.

The committee voted to pass or advance bills that expand the Hawaii Property Insurance Association and Hawaii Hurricane Relief Fund’s authorities, require more transparency for condominium associations and owners, convene workgroups to study risk-transfer options, and permit electronic delivery of insurer claim proceeds. Several measures were amended to add technical clarifications, require reports, or defer effective dates to July 1, 2050, to allow time for implementation and rulemaking.

Why it matters

The package targets a visible, ongoing problem: condo boards and unit owners who have experienced nonrenewals and large premium hikes say they often receive limited notice and explanation. That gap, members said, prevents associations from budgeting for reserves or seeking alternative coverage. Committee members repeatedly cited constituent reports of potential displacement and financial harm among older condominium owners.

What the committee did and why

Insurance-division staff and the Office of the Attorney General urged careful statutory drafting and flagged areas where administrative capacity, treasury placement of funds or tax status must be explicit. Jerry Vump, chief deputy (Insurance Division), told the committee that the bills stemmed from the administration’s condo task force: “This measure came out of the governor’s executive and legislative condo property task force.”

Kathleen Nakasone, rate and policy analysis manager at the Hawaii Insurance Division, described repeated complaints from condo owners: “I myself have taken many calls, and so we acknowledge that it it's a problem.” She and other witnesses said the communication breakdown is often between agents, boards and unit owners: agents typically work with boards or management companies, and not all boards relay full information to unit owners.

Industry groups voiced caution. Michael O’Frieni of the Hawaii Insurers Council and other carriers warned of unintended consequences from coverage mandates and noted the necessary role the surplus market currently plays when admitted carriers withdraw. Regulators and industry witnesses emphasized that admitted carriers may avoid writing certain condo risks until buildings’ risk profiles improve, and that surplus-market pricing can appear high because it must reflect current risk and market conditions.

Committee changes and follow up

During decision making the committee adopted multiple amendments across the package, including attorney-general clarifications and changes to governance, procurement and fee structures. The chair asked the committee report to reflect an administration preference that the Hawaii Property Insurance Association (HPIA) side receive a $50 million general fund loan if the legislature proceeds, and added a directive that both entities consider requests for proposals so domestic private insurers with operating capacity can bid to manage programs.

Several technical steps were adopted to accelerate implementation: a flat-fee agent compensation structure was favored over commission for at least some programs; reports and studies were ordered with specific due dates; and the committee delayed some effective dates to give agencies time to prepare.

Votes at a glance (selected measures tracked in the hearing record)

- SB 1044 — Expand HPIA/HHRF powers; study and stabilization measures: Passed with amendments. Committee report to include administration’s recommended $50 million loan preference; effective date deferred to July 1, 2050. (Recorded: Chair Keohokalole — aye; Vice Chair Fukunaga — aye; Senator McKelvey — yes; Senators Richards and Awa — excused.)

- SB 1140 — Fair Access to Insurance Requirements Program (program of last resort under DCCA): Passed with amendments; attorney-general clarifications adopted; effective date deferred to July 1, 2050.

- SB 803 — Require insurers to provide advance premium-change notices and loss-run reports to common-interest communities and report to the insurance commissioner: Passed with amendments (added automatic loss-run issuance at policy year end); effective date deferred to July 1, 2050.

- SB 1129 — Require insurance commissioner to convene a working group on risk-transfer mechanisms: Passed with amendments; report due 20 days before the 2026 legislative session; committee added a general-fund appropriation placeholder to support the group; effective date deferred to July 1, 2050.

- SB 1128 — Additional Living Expenses (ALE) requirements for homeowners policies after declared emergencies: Passed with amendments; effective date deferred to July 1, 2050.

- SB 142 — Clarify insurer/mortgagee claim-check handling and allow electronic delivery of insurer claim proceeds to mortgagees: Passed with amendments to allow electronic transfer in lieu of certified-mail checks; effective date deferred to July 1, 2050.

Deferred or continued

- SB 805 — Establish Hawaii condominium mutual insurance company and loan fund (COMIC): Decision making deferred to Feb. 4, 2025, to allow additional amendments and review of capital, tax, and operational issues.

- SB 1141 — Homeowners insurance protections for wildfire losses: Deferred to Feb. 4, 2025 for further consideration.

- SB 525 — Notice and consent requirement for cremation services contracts (heard later in the agenda): Deferred to Feb. 4, 2025.

Voices from the hearing

Condominium representatives, bankers and nonprofit groups urged stronger access to capital and clearer mechanisms for temporary financing and credit enhancement. The Hawaii Bankers Association suggested credit-enhancement mechanisms and CDFI partnerships as potential tools to help associations access capital. The Ygrene Infrastructure Authority said it had received roughly 15 inquiry packages from condominiums seeking financing but, as of the hearing, no condominium loans had closed.

Regulatory limits and next steps

Insurance-division witnesses explained that surplus lines are not regulated the same as admitted carriers; surplus lines can provide rapid coverage but are priced based on present risk. Committee members emphasized they wanted statutory guardrails that would encourage risk mitigation (building repairs, resilience measures) and restore greater participation in the admitted market over time.

The committee directed authors and staff to supply amended language and to craft committee-report language that: (1) clarifies treasury placement and tax treatment for any new funds; (2) requires procurement/RFPs to evaluate private insurers’ operational capacity; and (3) sets reporting deadlines and implementation phases so vendors and entities can stand up programs more quickly.

What’s next

Final floor action will follow committee reports and subsequent Senate floor scheduling. Deferred measures, including the mutual insurer bill (SB 805) and wildfire-protections bill (SB 1141), will return to the committee on Feb. 4 for additional amendment and decision making.

Ending note

Committee members repeatedly framed the package as an urgent response to an ongoing affordability and access problem. With amendments adopted and additional work requested, the committee moved to align statutory tools, administrative capacity and funding signals in hopes of stabilizing the market for condominiums and homeowner policyholders across Hawaii.","mediaType","Video","parentTitle","CPN, CPN DEFER Public Hearings 01-31-2025","oneSentenceSummary","The Senate Committee on Commerce and Consumer Protection on Jan. 31 advanced several bills aimed at stabilizing Hawaii’s property insurance market, passing a number of measures with amendments, deferring others for further work, and instructing agencies to submit implementation plans and procurement options.","taxTitle","Senate Committee on Commerce and Consumer Protection, Senate, Legislative , Hawaii","taxId",25726,"location","Hawaii","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6358899,"Committee approves tax credit bill for wind-resistance home retrofits, with administration and certification changes",4763,1329000,6092000,"/Search/View?dp=1&key=2210712-5f3806ebe374c5090d8dab682156f160&start=1329&end=6092","https://assets.pipeline.soar.com/2210712-5f3806ebe374c5090d8dab682156f160/thumbnail_1329000.jpg","/articles/6358899/Hawaii/Committee-approves-tax-credit-bill-for-wind-resistance-home-retrofits-with-administration-and-certification-changes","https://secure.pipeline.soar.com/6358899-0c8ddfe7d6fcfac8e54e5104d5173cdc/orig.mp4?Expires=1771176090&Signature=ZcTsKXEdyis3F9g6wM1J5aNLvhYJ1~~SDunv6QzDI~EpMbGc3J0erk7DE5NB~EFejB7iuSeaWj~R70R5I8wT7bUZgZtrTmWQcLfIqcXT2dsBQpI3-A79td~Q88aNAVQZtyWoxvEd-I5RmE9OvLlCh4tqNFP6BpnKtZgtOJ5qw-aR8BRPPkvDWqbpplk7hyLMLVt5LHjAyaaqHvdn0K6JrTk~j7krG3Cs8iiyi2f7NRiA~FQq3dNyXvNEUPCjn8UoocsSd2cKUswN-OUf9aTXZW4Vr5c9ckxsfvKhSHpnVVspLWKhqOZaW~Xyo5~6pIyoNOH4z03qhs8~GweKubxgWA__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Committee on Commerce and Consumer Protection on Jan. 31 voted to pass SB 697, a bill that would create a nonrefundable individual income tax credit for expenses paid to retrofit residences with wind-resistant devices, subject to amendments the committee adopted.

The committee accepted Department of Taxation amendments that removed a specified percentage, added a sunset and capped carry-forward rules. The committee also approved language to add a general-fund appropriation to the Department of Commerce and Consumer Affairs (DCCA) to administer the credit and deferred the bill’s effective date to July 1, 2050 to allow time for implementation.

Why it matters

Supporters said the credit would encourage homeowners to fortify older housing stock against stronger storms and thereby reduce demand for emergency shelters and disaster assistance. Critics and administrative witnesses warned that the insurance or certification requirements in the bill would require outside expertise or additional staffing to implement.

What witnesses said

Jerry Bump, chief deputy insurance commissioner, told the committee that the Insurance Division does not have in-house expertise to set certification standards for wind-resistance devices and “we may need to have an appropriation to either outsource that or ... hire additional staff that can handle that.” He urged the committee to consider administrative costs when designing the program.

Keoni Dudley, a supporter, said the bill would let homeowners “take a tax credit for their expense to fortify their house or apartment,” and argued broader adoption would reduce sheltering demand in future storms.

The Tax Foundation of Hawaii recommended a subsidy model instead of a tax credit, saying an upfront subsidy program can better define eligible equipment and control costs.

Committee action

The committee’s decision-making record shows SB 697 passed with amendments to blank the credit percentage, add a sunset and limit carryforward, and to add an appropriation to DCCA for administration; the bill’s effective date was deferred to July 1, 2050. The chair recorded the vote as passing with the chair and vice chair voting aye and other present members recorded as supporting the recommendation.

Next steps

With committee passage the bill will appear in the committee report and proceed toward floor scheduling. The deferred effective date is intended to give DCCA and other agencies time to design certification standards, vendor contracts or staffing plans before the credit would become operative.

Ending note

Supporters told the committee they view the credit as a resilience incentive; regulatory witnesses flagged implementation costs and the need for clear certification standards before the state can reliably administer a broad retrofit credit.","The Senate Committee on Commerce and Consumer Protection on Jan. 31 passed SB 697 with amendments to establish a nonrefundable income-tax credit for expenses to retrofit residences with wind-resistive devices. The committee adopted changes requested by the Department of Taxation and added administrative funding to the Department of Commerce and","actionData","errors"]

Article not found

Senate commerce committee advances package of bills to address Hawaii property insurance crisis

Committee approves tax credit bill for wind-resistance home retrofits, with administration and certification changes