STAND. COM. REP. NO. 120-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2048

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2048 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PROPERTY INSURANCE ASSOCIATION,"

begs leave to report as follows:

The purpose of this measure is to amend the composition of the board of directors of the Hawaii Property Insurance Association by:

(1) Increasing the number of public members from three to four; and

(2) Changing the authority of who appoints those public members from the Insurance Commissioner to the President of the Senate and Speaker of the House of Representatives.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and numerous individuals. Your Committee received comments on this measure from the Hawaii Property Insurance Association and Puna Citizens for Affordable and Sustainable Property Insurance.

Your Committee finds that the Hawaii Property Insurance Association serves as the market of last resort to ensure the availability of basic residential property insurance in the State. This measure provides a mechanism for more diverse representation and a broad range of perspectives by shifting the authority for making public member appointments to the Association's board of directors from the Insurance Commissioner to the President of the Senate and Speaker of the House of Representatives.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2048, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2048, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

MARK M. NAKASHIMA, Chair