202           
HOUSE OF REPRESENTATIVES             H.C.R. NO.            
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        RESOLUTION

  REQUESTING THE AUDITOR TO CONDUCT A STUDY OF LAVA ZONES
    ESTABLISHED IN THE COUNTY OF HAWAII, INCLUDING THEIR
    APPROPRIATENESS FOR INSURANCE PURPOSES.


 1        WHEREAS, the threat of volcanic eruptions and the
 2   possibility of being inundated by lava is a problem faced by
 3   many residents and property owners on the Big Island; and
 4   
 5        WHEREAS, lava flows have the capacity to destroy homes and
 6   threaten the lives of those who reside in the path of
 7   destruction; and
 8   
 9        WHEREAS, on May 18, 1990, the President of the United
10   States declared Hawaii county a major disaster area as a result
11   of damage to the rural communities and subdivisions of the Puna
12   district caused by eruptions from Kilauea volcano; and
13   
14        WHEREAS, the Kilauea eruptions, which began in January
15   1983, destroyed numerous structures and caused millions of
16   dollars in property damage and immeasurable pain and suffering
17   to those who lost their homes and possessions; and
18   
19        WHEREAS, lava flows especially threaten the lives and
20   homes of those persons living in the large unimproved
21   subdivisions in and around the Kilauea east rift and Mauna Loa
22   southwest rift.  The United States Geological Survey has found
23   the highest and second-highest risks of lava inundation in
24   these areas, respectively described as lava hazard zones 1 and
25   2; and
26   
27        WHEREAS, while the threat of volcanic eruptions and lava
28   flows cannot be prevented, stopped, or diverted, the risk to
29   life and property can be mitigated by land use decisions that
30   affect property development and human settlement in areas
31   characterized by significant natural hazards; and
32   
33        WHEREAS, however, the establishment of new policies to
34   restrict the settlement of areas deemed to be of high risk
35   would result in profound social, cultural, and economic
36   impacts; and
37   

 
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                                  H.C.R. NO.            
                                                        
                                                        

 1        WHEREAS, Act 284, Session Laws of Hawaii 1991, codified in
 2   article 21 of chapter 431, Hawaii Revised Statutes, created the
 3   Hawaii Property Insurance Association, a nonprofit
 4   unincorporated legal entity comprised of all authorized
 5   property and casualty insurers in Hawaii except those
 6   transacting only motor vehicle insurance; and
 7   
 8        WHEREAS, the purpose of the Association is to insure the
 9   residual market of homeowners, that is, qualified property for
10   which basic property insurance cannot be obtained through
11   authorized insurers; in particular, to insure property in high
12   risk areas for major natural disasters; and
13   
14        WHEREAS, the Association's creation helped to relieve the
15   insurance unavailability crisis facing homeowners in the lava
16   zone areas on the Big Island who discovered that basic property
17   insurance could no longer be obtained following the Kilauea
18   volcano eruption and lava flows; and
19   
20        WHEREAS, however, the law establishing the Association was
21   not intended to provide insurance for large-scale development,
22   when lava flow or attendant loss is imminent, or to encourage
23   further development in high risk areas for volcanic activity or
24   other major natural disasters; and
25   
26        WHEREAS, there is a need to review and re-examine the
27   designation of lava zones on the Big Island and the policies
28   associated with each such designation, including the policy of
29   allowing people to live on lands classified as high risk areas,
30   with a view toward determining whether the zones are
31   appropriate for insurance purposes; now, therefore,
32   
33        BE IT RESOLVED by the House of Representatives of the
34   Twentieth Legislature of the State of Hawaii, Regular Session
35   of 1999, the Senate concurring, that the Auditor is requested
36   to conduct a study of lava zones established in the County of
37   Hawaii, including their appropriateness for insurance purposes;
38   and
39   
40        BE IT FURTHER RESOLVED that the Auditor's study is
41   requested to include the following:
42   
43        (1)  A review and examination of all applicable federal,
44             state, and county laws, rules, regulations,
45             ordinances, and policies relating to the lava zones
46             in Hawaii County, including applicable insurance and
47             land use provisions;
48   

 
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                                  H.C.R. NO.            
                                                        
                                                        

 1        (2)  A review of the social, cultural, and economic
 2             impacts associated with a policy of allowing people
 3             to live on lands classified as high risk areas on the
 4             Big Island; and
 5   
 6        (3)  A determination as to the overall appropriateness of
 7             the designation of lava zones, including whether the
 8             zones are appropriate for insurance purposes;
 9   
10        (4)  A review of whether the law establishing the Hawaii
11             Property Insurance Association should be amended to
12             allow the Association to issue homeowner's insurance
13             policies to persons owning residences in specific
14             lava zones, or whether the Association should be
15             required to offer optional coverage for losses caused
16             by volcanic eruption in specific zones;
17   
18        (5)  A review of existing programs pertaining to hazard
19             mitigation, including an identification of the
20             strengths and weaknesses of these programs, as well
21             as mitigation measures to reduce the impact of future
22             volcanic eruptions;
23   
24        (6)  A review of existing land uses within Kilauea lava
25             flow hazard zones 1 and 2 and the potential risk to
26             life and property from lava flow that further
27             development of these areas may create;
28   
29        (7)  An analysis of the relative costs of potential
30             volcanic hazards versus the costs of mitigating these
31             hazards; and
32   
33        (8)  Recommendations as to a comprehensive policy to
34             protect life and property in high lava flow
35             inundation hazard areas;
36   
37   and
38   
39        BE IT FURTHER RESOLVED that all other departments,
40   agencies, and offices of the State, as appropriate, and any
41   private companies or agencies receiving state funds, are
42   requested to cooperate with and provide assistance to the
43   Auditor with respect to its study; and
44   
45        BE IT FURTHER RESOLVED that the Auditor is requested to
46   report findings and recommendations, including any proposed
47   implementing legislation, to the Legislature no later than
48   twenty days before the convening of the Regular Session of
49   2000; and
50   

 
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                                  H.C.R. NO.            
                                                        
                                                        

 1        BE IT FURTHER RESOLVED that certified copies of this
 2   Concurrent Resolution be transmitted to the Auditor, the
 3   Insurance Commissioner, and the Chairperson of the Board of
 4   Directors of the Hawaii Property Insurance Association.
 5 
 6 
 7 
 8                         OFFERED BY:  ____________________________