HR114

HOUSE OF REPRESENTATIVES	H.R. NO.	114
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

---

HOUSE RESOLUTION

 

REQUESTING AN INVESTIGATION INTO THE STATUS OF THE HAWAII HURRICANE RELIEF FUND.

 

 

WHEREAS, there is a significant question whether the surplus in the Hawaii hurricane relief fund belongs to the State, those who purchased hurricane insurance, those who paid fees to record a mortgage, or the insurers who paid assessments into the fund; and

WHEREAS, there are serious allegations concerning the fund's Board of Trustees and whether the Board breached its duties under the plan of operation by not keeping a record of either the purchasers of insurance or the depositors of the mortgage recordation fees; and

WHEREAS, there may also be constitutional issues triggered by the transfer of the funds into the general fund; and

WHEREAS, the legislative intent behind the creation of the fund was not to balance the state budget or to supplement government programs unrelated to losses resulting from a hurricane; and

WHEREAS, refunding the fund moneys in a fair and equitable manner would immediately inject significant capital into the economy; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, that the House Consumer Protection and Commerce Committee is requested to convene a hearing for the purpose of investigating the status of the Hawaii hurricane relief fund; and

BE IT FURTHER RESOLVED that the investigative committee shall have every power and function allowed to an investigating committee by law, including without limitation the power to:

(1) Adopt rules for the conduct of its proceedings;

(2) Issue subpoenas requiring the attendance and testimony of witnesses and subpoenas duces tecum requiring the production of books, documents, records, papers, or other evidence in any matter pending before the committee;

(3) Hold hearings appropriate for the performance of its duties, at such times and places as the committee determines;

(4) Administer oaths and affirmations to witnesses at hearings of the committee;

(5) Report or certify instances of contempt as provided in section 21-14, Hawaii Revised Statutes;

(6) Employ professional, technical, clerical, or other staff and expend such funds appropriated for the House of Representatives operating expenses for 2002 as necessary for the proper performance of its duties; and

(7) Exercise all other powers specified under chapter 21, Hawaii Revised Statutes, with respect to investigating committees;

and

BE IT FURTHER RESOLVED that the investigative committee is requested to seek to accomplish the following:

(1) Determine who owns the fund;

(2) Investigate whether the fund's Board of Trustees properly maintained the fund's records pursuant to its statutory duties under chapter 431P, Hawaii Revised Statutes, and its common law duties as the fund's trustees;

(3) Determine whether the Board has a duty under chapter 431P, Hawaii Revised Statutes, and under the common law to maintain records of each and every fund transaction from the fund's inception, including the names of each and every one of the persons or entities ("beneficiaries") that paid into the fund and how much each paid; and

(4) Determine a means for refunding the fund to the beneficiaries in a fair and equitable manner in the event the Legislature adopts legislation to refund the funds;

and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Speaker of the House of Representatives and the Chairperson of the House Consumer Protection and Commerce Committee.

 

 

	OFFERED BY:	_____________________________

Report Title:

Hawaii Hurricane Relief Fund