STAND. COM. REP. NO. 3409

Honolulu, Hawaii

RE: S.C.R. No. 118

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.C.R. No. 118 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE INSURANCE DIVISION OF THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS AND DEPARTMENT OF THE ATTORNEY GENERAL TO CONVENE A WORKING GROUP TO IDENTIFY FEASIBLE OPTIONS AND MECHANISMS TO PROTECT THE STATE AND ITS RESIDENTS AGAINST THE EFFECTS OF CLIMATE CHANGE ON THE AVAILABILITY AND AFFORDABILITY OF INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to urge the Insurance Division of the Department of Commerce and Consumer Affairs and Department of the Attorney General to convene a working group to identify feasible options and mechanisms to protect the State and its residents against the effects of climate change on the availability and affordability of insurance.

Your Committee received testimony in support of this measure from the Climate Change Mitigation and Adaptation Commission and Polluters Pay Hawaiʻi.

Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs and one individual.

Your Committee finds that the insurance market in the State has become destabilized due to climate-related risks, rising costs, and insurer retreat. Your Committee further finds that this situation is causing mounting financial pressure on families, kūpuna, working households, and the State's insurers of last resort. This measure would help break this cycle by urging the formation of a working group to undertake coordinated, data-driven analysis of risks, identify feasible policy solutions, and develop strategies for consumer protection and the State's long-term financial stability.

Your Committee has amended this measure by:

(1) Inserting language to request that the Chief of the Hawaii Office of Recovery and Resiliency or their designee be a member of the working group;

(2) Replacing language that would have required the working group to submit a report to the Legislature with language that requires the working group to share its findings and recommendations, including any proposed legislation, with the Senate Standing Committee on Commerce and Consumer Protection and House Standing Committee on Consumer Protection and Commerce; 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 concurs with the intent and purpose of S.C.R. No. 118, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 118, S.D. 1.

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

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JARRETT KEOHOKALOLE, Chair