REPORT TITLE:
Hawaii Hurricane Relief Fund


DESCRIPTION:
Repeals the Hawaii hurricane relief fund. Establishes the
hurricane relief loan fund to provide loans to strengthen homes
at risk for hurricane damage.  Establishes the hurricane loss
projection methodology commission to improve the reliability of
hurricane loss projections.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.665        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                              
_________________________________________________________________
_________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO INSURANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1                              PART I
 
 2      SECTION 1. (a)  Hurricane relief loan fund; establishment.
 
 3 Notwithstanding any other provision to the contrary, there is
 
 4 established a special fund within the state treasury to be known
 
 5 as the hurricane relief loan fund into which may be deposited
 
 6 moneys from the hurricane reserve trust fund.
 
 7      (b)  Hurricane relief administrative procedures loan
 
 8 committee; establishment.  The fund shall be administered by the
 
 9 hurricane relief administrative procedures loan committee, which
 
10 shall be composed of seven members as follows:
 
11      (1)  The director of business, economic development, and
 
12           tourism, or designee, as an ex officio member;
 
13      (2)  The insurance commissioner, or designee, as an ex
 
14           officio member; and
 
15      (3)  Five members of financial institutions in the State,
 
16           who shall be appointed by the governor pursuant to
 
17           section 26-34.
 
18 The loan committee shall elect a chair from their voting members,
 
19 and establish procedures, subject to the approval of the director 
 

 
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 1 of business, economic development, and tourism and the insurance
 
 2 commissioner, under which financial institutions shall access the
 
 3 economic development loan fund, including fees, charges, the
 
 4 amount and form of security, and loan terms for loans to
 
 5 homeowners to strengthen or otherwise "hurricane-proof" homes
 
 6 that are at risk either because of the type of structure or the
 
 7 location of the structure in an area prone to hurricane damage.
 
 8      Members shall serve without pay but shall be reimbursed for
 
 9 their actual and necessary expenses, including travel expenses
 
10 incurred in carrying out their duties.
 
11      (c)  Application; inspection.(a)  Any person having an
 
12 interest in real property who has been unable to obtain a loan to
 
13 hurricane-proof the property may apply to a financial institution
 
14 for a loan pursuant to this chapter.  A person shall be presumed
 
15 to be unable to otherwise obtain a loan if that person has been
 
16 turned down for a loan application by two other financial
 
17 institutions.
 
18      Within ten days of receiving an application, the financial
 
19 institution shall determine, based on information received from
 
20 the hurricane loss projection methodology commission, whether the
 
21 property is located in an area of projected hurricane loss.  If
 
22 the property is found to be located in such an area, the
 

 
 
 
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 1 financial institution may provide a loan to the property owner
 
 2 pursuant to this chapter.
 
 3      SECTION 2.  (a)  Hurricane loss projection methodology
 
 4 commission; establishment. There is established the hurricane
 
 5 loss projection methodology commission to be placed in the
 
 6 department of commerce and consumer affairs for administrative
 
 7 purposes only.
 
 8      (b)  Members of the methodology commission shall be
 
 9 appointed by the governor pursuant to section 26-34 and shall
 
10 consist of eleven members:
 
11      (1)  The insurance commissioner;
 
12      (2)  The chair of the fund;
 
13      (3)  A representative from the Hawaii Insurers Council;
 
14      (4)  A representative from the civil defense division of the
 
15           department of defense;
 
16      (5)  The Hawaii state insurance actuary;
 
17      (6)  A fund reinsurer;
 
18      (7)  A hazard mitigation specialist from the University of
 
19           Hawaii;
 
20      (8)  A representative from the Structural Engineers
 
21           Association of Hawaii;
 
22      (9)  A statistical modeling expert from the University of
 
23           Hawaii;
 

 
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 1     (10)  An oceanographer who is an expert in climate
 
 2           variability from the University of Hawaii; and
 
 3     (11)  An expert in meteorology who is a full-time member of
 
 4           the faculty of the University of Hawaii.
 
 5      The governor shall select a chairperson from among the
 
 6 members.
 
 7      Members of the methodology commission shall serve without
 
 8 compensation, but may be reimbursed for necessary expenses,
 
 9 including travel expenses, incurred in the performance of their
 
10 duties.
 
11      There shall be no liability on the part of, and no cause of
 
12 action of any nature shall arise against, any member of the
 
13 methodology commission or any officer or employee of the
 
14 department of commerce and consumer affairs, for any action taken
 
15 in the performance of their duties under this section.
 
16      The methodology commission may, in writing, waive any
 
17 potential cause of action for negligence of a consultant,
 
18 contractor, or contract employee engaged to assist the
 
19 methodology commission.
 
20      (b)   Hurricane loss projection standards and guidelines.
 
21 The methodology commission shall consider any actuarial methods,
 
22 principles, standards, models, or output ranges that have the
 
23 potential for improving the accuracy or reliability of hurricane
 

 
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 1 loss projections used in residential property insurance rate
 
 2 filings.  Hurricane projections shall be based on the most recent
 
 3 scientific information available in Hawaii and other hurricane-
 
 4 prone areas of the world.  The methodology commission shall, from
 
 5 time to time, adopt findings as to the accuracy or reliability of
 
 6 particular methods, principles, standards, models, or output
 
 7 ranges.
 
 8      In establishing reimbursement premiums for the fund, the
 
 9 commission shall, to the extent feasible, employ actuarial
 
10 methods, principles, standards, models, or output ranges found by
 
11 the methodology commission to be accurate or reliable.
 
12      With respect to a rate filing, an insurer may employ
 
13 actuarial methods, principles, standards, models, or output
 
14 ranges found by the methodology commission to be accurate or
 
15 reliable to determine hurricane loss factors for use in a rate
 
16 filing which findings and factors are admissible and relevant in
 
17 consideration of a rate filing or in any arbitration,
 
18 administrative review, or judicial review.
 
19      The methodology commission shall adopt initial actuarial
 
20 methods, principles, standards, models, or output ranges no later
 
21 than July 1, 2000.  The methodology commission shall adopt
 
22 revisions to the actuarial methods, principles, standards,
 
23 models, or output ranges at least annually thereafter.
 

 
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 1      No later than December 31, 2000, the methodology commission
 
 2 shall adopt revised actuarial methods, principles, standards,
 
 3 models, or output models that include specification of acceptable
 
 4 computer models or output ranges derived from computer models.
 
 5      (c)  Annual reports.  The methodology commission shall
 
 6 submit a report of its activities, including status of hurricane
 
 7 loss projection standards and guidelines, to the legislature at
 
 8 least twenty days before the convening of each regular
 
 9 legislative session.
 
10      SECTION 3.  Definitions.  As used in this part, unless the
 
11 context requires otherwise:
 
12      "Fund" means the hurricane relief loan fund.
 
13      "Hurricane proofing" means any improvement to real property
 
14 in an area prone to hurricane damage which will increase the
 
15 property's ability to withstand hurricane force winds.
 
16      "Loan committee" means the hurricane relief administrative
 
17 procedures loan committee established in section    -3.
 
18      "Methodology commission" means the hurricane loss projection
 
19 methodology commission established in this part.
 
20                              PART II
 
21      SECTION 4.  All fund balances for the hurricane reserve
 
22 trust fund remaining unencumbered and unexpended as of June 30,
 
23 1999, shall be transferred to the general fund; provided that
 

 
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 1 $10,000,000 of the fund balance in the hurricane reserve trust
 
 2 fund shall be transferred to the hurricane relief loan fund for
 
 3 use by the hurricane relief administrative procedures loan
 
 4 committee pursuant to this Act.
 
 5      SECTION 5.  Section 36-27, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "36-27  Transfers from special funds for central service
 
 8 expenses.  Except as provided in this section, and
 
 9 notwithstanding any other law to the contrary, from time to time
 
10 the director of finance, for the purpose of defraying the
 
11 prorated estimate of central service expenses of government in
 
12 relation to all special funds, except the:
 
13      (1)  Special summer school and intersession fund under
 
14           section 302A-1310;
 
15      (2)  School cafeteria special funds of the department of
 
16           education;
 
17      (3)  Special funds of the University of Hawaii;
 
18      (4)  State educational facilities improvement special fund;
 
19      (5)  Convention center capital special fund under section
 
20           206X-10.5 and the convention center operations special
 
21           fund under section 206X-10.6;
 
22      (6)  Special funds established by section 206E-6;
 
23      (7)  Housing loan program revenue bond special fund;
 

 
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 1      (8)  Housing project bond special fund;
 
 2      (9)  Aloha Tower fund created by section 206J-17;
 
 3     (10)  Domestic violence prevention special fund under section
 
 4           321-1.3;
 
 5     (11)  Spouse and child abuse special account under section
 
 6           346-7.5;
 
 7     (12)  Spouse and child abuse special account under section
 
 8           601-3.6;
 
 9     (13)  Funds of the employees' retirement system created by
 
10           section 88-109;
 
11     (14)  Unemployment compensation fund established under
 
12           section 383-121;
 
13    [(15)  Hawaii hurricane relief fund established under chapter
 
14           431P;
 
15     (16)] (15) Hawaii health systems corporation special funds;
 
16    [(17)] (16)  Boiler and elevator safety revolving fund
 
17           established under section 397-5.5;
 
18    [(18)] (17)  Tourism special fund established under section
 
19           [[]201B-11[]]; and
 
20    [(19)] (18)  Department of commerce and consumer affairs'
 
21           special funds;
 
22 shall deduct five per cent of all receipts of all other special
 
23 funds, which deduction shall be transferred to the general fund
 

 
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 1 of the State and become general realizations of the State.  All
 
 2 officers of the State and other persons having power to allocate
 
 3 or disburse any special funds shall cooperate with the director
 
 4 in effecting these transfers.  To determine the proper revenue
 
 5 base upon which the central service assessment is to be
 
 6 calculated, the director shall adopt rules pursuant to chapter 91
 
 7 for the purpose of suspending or limiting the application of the
 
 8 central service assessment of any fund.  No later than twenty
 
 9 days prior to the convening of each regular session of the
 
10 legislature, the director shall report all central service
 
11 assessments made during the preceding fiscal year."
 
12      SECTION 6.  Section 36-30, Hawaii Revised Statutes, is
 
13 amended by amending subsection (a) to read as follows:
 
14      "(a)  Each special fund, except the:
 
15      (1)  Transportation use special fund established by section
 
16           261D-1;
 
17      (2)  Special summer school and intersession fund under
 
18           section 302A-1310;
 
19      (3)  School cafeteria special funds of the department of
 
20           education;
 
21      (4)  Special funds of the University of Hawaii;
 
22      (5)  State educational facilities improvement special fund;
 
23      (6)  Special funds established by section 206E-6;
 

 
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 1      (7)  Aloha Tower fund created by section 206J-17;
 
 2      (8)  Domestic violence prevention special fund under section
 
 3           321-1.3;
 
 4      (9)  Spouse and child abuse special account under section
 
 5           346-7.5;
 
 6     (10)  Spouse and child abuse special account under section
 
 7           601-3.6;
 
 8     (11)  Funds of the employees' retirement system created by
 
 9           section 88-109;
 
10     (12)  Unemployment compensation fund established under
 
11           section 383-121;
 
12    [(13)  Hawaii hurricane relief fund established under chapter
 
13           431P;
 
14     (14)] (13)  Convention center capital special fund
 
15           established under section 206X-10.5 and the convention
 
16           center operations special fund established under
 
17           section 206X-10.6;
 
18    [(15)] (14)  Hawaii health systems corporation special funds;
 
19           and
 
20    [(16)] (15)  Tourism special fund established under section
 
21           [[]201B-11[]];
 

 
 
 
 
 
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 1 shall be responsible for its pro rata share of the administrative
 
 2 expenses incurred by the department responsible for the
 
 3 operations supported by the special fund concerned."
 
 4      SECTION 7.  Section 39-51, Hawaii Revised Statutes, is
 
 5 amended as follows:
 
 6      1.  By amending the definitions of "revenue" and "revenue
 
 7 bonds" to read:
 
 8      ""Revenue" means the moneys collected, including any moneys
 
 9 collected from the State or any department, or any county or
 
10 board, agency, or instrumentality thereof, from the rates,
 
11 rentals, fees, and charges prescribed for the use and services
 
12 of, and the facilities and commodities furnished by, an
 
13 undertaking or the use and services and benefits of a loan
 
14 program[; provided that the term shall include all insurance
 
15 premium payments, assessments, surcharges, investment earnings,
 
16 and all other income of the Hawaii hurricane relief fund]."
 
17      "Revenue bonds" means all bonds payable solely from and
 
18 secured by the revenue, or user taxes, or any combination of
 
19 both, of an undertaking or loan program or any loan made
 
20 thereunder for which bonds are issued and as otherwise provided
 
21 in this part[; provided that the term shall include all bonds
 
22 issued by the director of finance under the authority of section
 

 
 
 
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 1 10(a), Act 339, Session Laws of Hawaii 1993, as amended, for the
 
 2 purposes of the hurricane bond loan fund]."
 
 3      2.  By repealing the definition of "policy of hurricane
 
 4 property insurance":
 
 5      [""Policy of hurricane property insurance" means a policy or
 
 6 endorsement of insurance issued by the Hawaii hurricane relief
 
 7 fund under section 431P-10."]
 
 8      SECTION 8.  Section 39-52, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "39-52  Declaration of policy.  It is declared to be the
 
11 policy of the State that any department acquiring, purchasing,
 
12 constructing, reconstructing, improving, bettering, or extending
 
13 an undertaking or establishing or administering a loan program
 
14 pursuant to this chapter [or providing policies of hurricane
 
15 property insurance to the general public,] shall manage the
 
16 undertaking[,] or loan program[, or the Hawaii hurricane relief
 
17 fund] in the most efficient manner consistent with sound economy
 
18 and public advantage, and consistent with the protection of
 
19 bondholders."
 
20      SECTION 9.  Section 39-54, Hawaii Revised Statutes, is
 
21 amended by amending subsection (a) to read as follows:
 
22      "(a)  The issuance of revenue bonds for the acquisition,
 
23 purchase, construction, reconstruction, improvement, betterment,
 

 
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 1 or extension of any undertaking[;] or the establishment and
 
 2 administration of any loan program authorized by law[; or the
 
 3 coverage of policies of hurricane property insurance issued by
 
 4 the Hawaii hurricane relief fund] shall be authorized:
 
 5      (1)  By a resolution or resolutions of the governing body of
 
 6           the department, which may be adopted at the same
 
 7           meeting at which the same are introduced by a majority
 
 8           of all the members of the governing body of the
 
 9           department then in office, and shall take effect
 
10           immediately upon filing with the director of finance;
 
11           or
 
12      (2)  By a certificate or certificates of a department head,
 
13           which shall take effect immediately upon filing with
 
14           the director of finance."
 
15      SECTION 10.  Section 39-60, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "39-60  Covenants in resolution or certificate authorizing
 
18 issuance of revenue bonds.  Any resolution or certificate
 
19 authorizing the issuance of revenue bonds pursuant to this part
 
20 may contain covenants as to:
 
21      (1)  The purpose or purposes to which the proceeds of sale
 
22           of the revenue bonds shall be applied and the use and
 
23           disposition thereof;
 

 
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 1      (2)  The use and disposition of the revenue of the
 
 2           undertaking[, the Hawaii hurricane relief fund,] or the
 
 3           loan program for which the revenue bonds are to be
 
 4           issued, or the user taxes derived therefrom, or both
 
 5           revenue and user taxes, to the extent pledged to the
 
 6           payment of the revenue bonds, including the priority of
 
 7           payments from the revenue and the creation and
 
 8           maintenance of reserves and the investment thereof;
 
 9      (3)  The issuance of other or additional revenue bonds
 
10           payable from the revenue of the loan program[, the
 
11           Hawaii hurricane relief fund,] or of the undertaking,
 
12           or the user taxes derived therefrom, or both revenue
 
13           and user taxes, to the extent pledged to the payment of
 
14           the revenue bonds;
 
15      (4)  The operation, maintenance, and repair of the
 
16           undertaking or the administration, operation, and
 
17           maintenance of the loan program[, or the Hawaii
 
18           hurricane relief fund];
 
19      (5)  The insurance to be carried on an undertaking or on the
 
20           security for [the Hawaii hurricane relief fund, or] a
 
21           loan program and the use and disposition of insurance
 
22           proceeds, the insurance policies being by this section
 
23           authorized to be carried, and no undertaking shall have
 

 
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 1           recourse to the state insurance fund for the repair or
 
 2           replacement of any property in the undertaking, or for
 
 3           payment of claims under chapter 386 (relating to
 
 4           workers' compensation);
 
 5      (6)  Books of account and the inspection and audit thereof;
 
 6           and
 
 7      (7)  The terms and conditions upon which the holders of the
 
 8           revenue bonds or any proportion of them or any trustee
 
 9           therefor shall be entitled to the appointment of a
 
10           receiver by any court of competent jurisdiction, which
 
11           court shall have jurisdiction in the proceedings, and
 
12           which receiver may enter and take possession of the
 
13           undertaking, operate, maintain, and repair the same,
 
14           enforce or foreclose loans made under a loan program,
 
15           impose and prescribe rates, rentals, fees, or charges,
 
16           collect, receive, and apply all revenue, and receive
 
17           and apply all user taxes, thereafter arising therefrom
 
18           in the same manner and to the same extent as the
 
19           department itself might do;
 
20 provided that all covenants shall be subject to review by the
 
21 governor; and provided further that the provisions of this
 
22 section with respect to user taxes shall be applicable only if
 
23 the legislature in the specific act or acts authorizing the
 

 
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                                     H.B. NO.665        
                                                        
                                                        

 
 1 issuance of the revenue bonds has provided that the revenue bonds
 
 2 may be paid from and secured by the user taxes derived from an
 
 3 undertaking.
 
 4      The provisions of this part and any resolution or
 
 5 certificate shall be a contract with the holder or holders of the
 
 6 revenue bonds.  The duties of the department, its governing body
 
 7 and department head, pursuant to this part, and any resolution or
 
 8 certificate shall be enforceable by any bondholder, by mandamus
 
 9 or other appropriate suit, action, or proceeding in any court of
 
10 competent jurisdiction."
 
11      SECTION 11.  Section 39-62, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "39-62  Use of revenue and user taxes by any undertaking[,]
 
14 or loan program[, or the Hawaii hurricane relief fund].  Whenever
 
15 any revenue bonds have been issued pursuant to this part for an
 
16 undertaking[,] or a loan program, [or the Hawaii hurricane relief
 
17 fund,] the revenue, or the user taxes, or combination of both, of
 
18 the undertaking, loan program, or fund from which the revenue
 
19 bonds are payable and by which they are secured shall be
 
20 deposited in a special fund and shall be appropriated, applied,
 
21 or expended in the amount necessary therefor for the following
 
22 purposes and in the order of priority as the department shall
 

 
 
 
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                                     H.B. NO.665        
                                                        
                                                        

 
 1 provide in the resolution or certificate authorizing the issuance
 
 2 of revenue bonds pursuant to this part:
 
 3      (1)  To pay when due all revenue bonds and interest thereon
 
 4           issued for the undertaking[,] or loan program, [or the
 
 5           Hawaii hurricane relief fund] for the payment of which
 
 6           the revenue, or user taxes, or combination of both, is
 
 7           or shall have been pledged, charged, or otherwise
 
 8           encumbered, including reserves therefor;
 
 9      (2)  To pay or provide for the payment of the cost of
 
10           operation, maintenance, and repair of the undertaking,
 
11           or to pay or provide for the payment of administering,
 
12           operating, and maintaining the loan program, including
 
13           reserves therefor;
 
14      (3)  For such purposes, within the jurisdiction, powers,
 
15           duties, and functions of the department, including the
 
16           creation and maintenance of reserves, as shall have
 
17           been covenanted in any resolution or resolutions or
 
18           certificate or certificates of the department providing
 
19           for the issuance of revenue bonds;
 
20      (4)  To reimburse the general fund of the State for all bond
 
21           requirements for general obligation bonds which are or
 
22           shall have been issued for the undertaking[,] or loan
 
23           program, [or the Hawaii hurricane relief fund,] or to
 

 
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                                     H.B. NO.665        
                                                        
                                                        

 
 1           refund any general obligation bonds, except insofar as
 
 2           the obligation of reimbursement has been or shall be
 
 3           canceled by the legislature, the bond requirements
 
 4           being the interest on term and serial bonds, sinking
 
 5           fund for term bonds, and principal of serial bonds
 
 6           maturing the following year;
 
 7      (5)  To provide for betterments and improvements to the
 
 8           undertaking or expansion of the loan program [or the
 
 9           Hawaii hurricane relief fund], including reserves
 
10           therefor; and
 
11      (6)  To provide special reserve funds and other special
 
12           funds as are or may be created by law.
 
13 The appropriation, application, or expenditure of amounts
 
14 deposited in the special fund pursuant to this section shall be
 
15 accounted for on a fiscal year basis.  Unless and until adequate
 
16 provision has been made for the foregoing purposes, the State
 
17 shall not have the right to transfer to its general fund or any
 
18 special fund or to apply to any other purposes any part of the
 
19 revenue or user taxes pledged to the payment of revenue bonds of
 
20 the undertaking or loan program."
 
21      SECTION 12.  Section 431:13-104, Hawaii Revised Statutes, is
 
22 amended by amending subsection (g) to read as follows:
 

 
 
 
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 1      "(g)  Nothing in this section shall prevent a person who
 
 2 lends money or extends credit from assisting a mortgagor,
 
 3 borrower, or purchaser in obtaining homeowners insurance where
 
 4 the borrower requests such assistance in writing.  [Nothing in
 
 5 this section shall prevent a person who lends money or extends
 
 6 credit from referring a mortgagor, borrower, or purchaser to the
 
 7 Hawaii hurricane relief fund.]"
 
 8      SECTION 13.  Section 431:21-105, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (a) to read as follows:
 
10      "(a)  In addition to any other requirements imposed by law,
 
11 the association shall:
 
12      (1)  Formulate and administer a plan of operation to insure
 
13           persons having an insurable interest in real or
 
14           tangible personal property in the area designated by
 
15           the commissioner[;], which shall include areas subject
 
16           to windstorm damage by hurricanes;
 
17      (2)  Reimburse each servicing facility for obligations of
 
18           the association paid by the facility and for expenses
 
19           incurred by the facility while processing applications
 
20           and servicing policies on behalf of the association;
 
21           and
 
22      (3)  Collect and maintain statistical information and other
 
23           information required by the commissioner."
 

 
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 1      SECTION 14.  Section 219.1 of the Hawaiian Homes Commission
 
 2 Act of 1920, as amended, is amended by amending subsection (b) to
 
 3 read as follows:
 
 4      "(b)  Notwithstanding any law to the contrary, the
 
 5 department either alone or together with any other governmental
 
 6 agency, may:
 
 7      (1)  Form an insurance company, association (nonprofit or
 
 8           otherwise), pool, or trust;
 
 9      (2)  Acquire an existing insurance company;
 
10      (3)  Enter into arrangements with one or more insurance
 
11           companies; or
 
12      (4)  Undertake any combination of the foregoing; upon such
 
13           terms and conditions and for such periods, as the
 
14           commission shall approve, to provide homeowner
 
15           protection, including hurricane coverage, for lessees
 
16           participating in such undertaking.  Such undertaking
 
17           shall be subject to the provisions of [chapter 431P,
 
18           including but not limited to section 431P-10(b), and]
 
19           chapter 431."
 
20      SECTION 15.  Chapter 431P, Hawaii Revised Statutes, is
 
21 repealed.
 
22      SECTION 16.  The provisions of the amendments made by this
 
23 Act to the Hawaiian Homes Commission Act of 1920, as amended, are
 

 
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 1 declared to be severable, and if any section, clause, or phrase,
 
 2 or the application thereof to any person or circumstance is held
 
 3 ineffective because there is a requirement of having the consent
 
 4 of the United States to take effect, then that portion only shall
 
 5 take effect upon the granting of consent by the United States and
 
 6 the effectiveness of the remainder of this Act or the application
 
 7 thereof shall not be affected.
 
 8      SECTION 17.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 18.  This Act shall take effect on July 1, 1999;
 
11 provided that:
 
12      (1)  Part I of this Act shall be repealed on July 1, 2004;
 
13      (2)  The amendments made to sections 36-27 and 36-30, Hawaii
 
14           Revised Statutes, by this Act shall not be repealed
 
15           when those sections are reenacted on July 1, 2000,
 
16           pursuant to:
 
17           (a)  Section 13 of Act 216, Session Laws of Hawaii
 
18                1997; or
 
19           (b)  Section 9 of Act 142, Session Laws of Hawaii 1998.
 
20 
 
21                              INTRODUCED BY:______________________