STAND. COM. REP. NO. 3675

Honolulu, Hawaii

RE: H.B. No. 20

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 20, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LAVA ZONE INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to address the high cost of homeowners insurance for persons living in lava zones 1 and 2.

Specifically, this measure:

(1) Requires the Legislative Reference Bureau, in consultation with actuaries with relevant experience, to conduct a study to:

(A) Identify mechanisms to bring in more insurers into the market to provide additional options for homeowners in lava zones 1 and 2; and

(B) Determine the subsidy required to lower homeowners insurance premium payments for homeowners in lava zones 1 and 2 to rates similar to those prior to the downturn in the insurance market; and

(2) Appropriates moneys for the study.

Your Committee received written comments in support of this measure from the Insurance Division of the Department of Commerce and Consumer Affairs, Aloha Independent Living Hawaii, and five individuals.

Your Committee received written comments on this measure from the Legislative Reference Bureau.

Your Committee finds that, while land is affordable in lava zones 1 and 2, homeowners insurance is expensive in these areas due to the presence of volcanic hazards. Your Committee further finds that the Insurance Division of the Department of Commerce and Consumer Affairs, as the executive branch agency responsible for effectuating insurance matters, possesses the subject matter expertise necessary to identify how to best address the high cost of insurance in lava zones 1 and 2.

Accordingly, your Committee has amended this measure by requiring the study to be conducted by the Insurance Division of the Department of Commerce and Consumer Affairs, rather than the Legislative Reference Bureau.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 20, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 20, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair