STAND. COM. REP. NO.
Honolulu, Hawaii
APR 0 3 2024
RE: S.R. No. 79
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.R. No. 79 entitled:
"SENATE RESOLUTION REQUESTING THE INSURANCE COMMISSIONER TO
COORDINATE AND DEVELOP A WILDFIRE INSURANCE COMPACT,"
begs leave to report as follows:
The purpose and intent of this measure is to request the
Insurance Commissioner to coordinate and develop a Wildfire
Insurance Compact.
Your Committee received comments on this measure from the
Insurance Division of the Department of Commerce and Consumer
Affairs.
Your Committee finds that the State is facing the growing
challenge of managing and preventing dangerous wildfires, which
has only been exacerbated by the rising temperatures associated
with climate change. As property insurance markets continue to
adjust to the uncertainty of and increased risks posed by
wildfires, your Committee finds that the State should also
consider exploring new, coordinated approaches that could help
manage costs, expedite recovery, and ensure that insurance
coverage remains available and affordable for Hawaii residents.
Therefore, this measure requests the Insurance Commissioner to
coordinate and develop new risk sharing approaches to wildfires.
2024—2323 SR SSCR SMA docx
■iiniiiiiiHiniiiiiiiiimniiiiii
 STAND. COM. REP. NO.
Page 2
specifically, a compact that focuses primarily on risk pooling,
with strategic partner states to provide mutual aid among members.
Your Committee notes the concerns raised by the testimony of
the Insurance Division of the Department of Commerce and Consumer
Affairs that this measure is unclear as to how a compact would
provide a mechanism for risk pooling or the specifications for
risk pooling, including the focus points, definitions, and
parameters to consider in an assessment for risk pooling.
Therefore, amendments to this measure are necessary to address
this concern.
Accordingly, your Committee has amended this measure by:
(1) Requesting the Insurance Commissioner to research and
convene stakeholder discussions to consider the concept
of a Wildfire Insurance Compact with strategic partner
states that have similar wildfire risks or robust
disaster management systems, rather than coordinate and
develop a Wildfire Insurance Compact;
(2) TXmending its title to reflect its amended purpose; 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.R. No. 79, as amended herein, and recommends its adoption in the
form attached hereto as S.R. No. 79, S.D. 1.
Respectfully submitted on
behalf of the members of the
Committee on Commerce and
2024-2323 SR SSCR SMA.docx
niiiiiii>iii iiii liii^iiiiniiii"
 The Senate
Thirty-Second Legislature
State of Hawaii
Record of Votes
Committee on Commerce and Consumer Protection
CPN
Bill / Resolution No.:* Committee Referral: Date:
CPN
__ The Committee is reconsidering its previous decision on this measure.
If so, then the previous decision was to: ______________________________________
The Recommendation is:
__ Pass, unamended Pass, with amendments __ Hold __ Recommit
2312 2311 2310 2313
Members Ayp Aye (WR) Nay Excused
KEOHOKALOLE, Jarrett (C)
FUKUNAGA. Carol (VC)
MCKELVEY, Angus L.K.
RICHARDS, III, Herbert M. “Tim”
AWA, Brenton
TOTAL
Recommendation: /
|V| Adopted __ Not Adopted
Chair’s or Designee’s Signature:
Distribution; Original ' Yellow Pink Goldenrod
File with Committee Report Clerk's Office Drafting Agency Committee File Copy
*Only one measure per Record of Votes
Revised: 12/27/23