STAND. COM. REP. NO. 2723

Honolulu, Hawaii

RE: S.B. No. 3344

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 3344 entitled:

"A BILL FOR AN ACT RELATING TO WILDFIRES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii Wildfire Relief Fund and Corporation to provide compensation for property damage resulting from catastrophic wildfires in the State;

(2) Require the Corporation's board to report to the Legislature; and

(3) Appropriate funds.

Your Committee received testimony in support of this measure from the Hawaiian Electric Company, Inc.; International Brotherhood of Electrical Workers Local Union 1260; Puna Geothermal Venture-Ormat; Chamber of Commerce Hawaii; Hawaii Leeward Planning Conference; AES Hawaiʻi; Ulupono Initiative; Hawaiʻi Island Chamber of Commerce; Kalaeloa Partners L.P.; Kona-Kohala Chamber of Commerce; Mālama Learning Center; Par Hawaii; Maui Chamber of Commerce; and eighty individuals.

Your Committee received testimony in opposition to this measure from State Farm Mutual Automobile Insurance Company and two individuals.

Your Committee received comments on this measure from the Office of the Governor; Department of Commerce and Consumer Affairs; Insurance Division, Division of Consumer Advocacy, and Office of Administrative Hearings of the Department of Commerce and Consumer Affairs; Public Utilities Commission; Department of Budget and Finance; Tax Foundation of Hawaii; and Kauaʻi Island Utility Cooperative.

Your Committee finds that as the risk of catastrophic wildfires in Hawaii has increased, so has the threat of property damage from wildfires. Your Committee further finds that while most property owners have insurance, some do not, and others have insurance that may not fully cover their losses. Your Committee finds that litigation related to property damages from wildfires can impose massive costs on the State, counties, utilities, landowners, and others. Therefore, this measure establishes a means to provide compensation for property damage resulting from wildfires and to mitigate losses by establishing the Hawaii Wildfire Relief Fund and Corporation.

Your Committee has amended this measure by:

(1) Inserting language to prohibit an electric utility that is subject to liability proceedings or insolvency claims from participating in the Hawaii Wildlife Relief Fund, unless it provides a plan to resolve the claims that is approved by the Public Utilities Commission;

(2) Inserting an effective date of July 1, 2040, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3344, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3344, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

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

________________________________

JARRETT KEOHOKALOLE, Chair