Establishes a three-year pilot program to provide grants to residential property owners for installation of wind resistive devices.
HOUSE OF REPRESENTATIVES
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII
A BILL FOR AN ACT
relating to loss mitigation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii is susceptible to property loss due to hurricanes, tropical storms, and strong winds, and that the best long-term solution to reducing the potential damage is the statewide use of wind resistive devices. The purpose of this Act is establish a three-year pilot program to provide grants to certain property owners for installation of wind resistive devices that reduce the severity of property loss from strong winds.
The legislature finds that the grant program serves a public purpose by protecting the health, safety, and welfare of the residents of this State. The installation of wind resistive devices will help to reduce the incidence and severity of personal injury and property damage in the event of a hurricane, thereby preserving human life and property values and minimizing disruptions to the Stateís economy, business activity, and the delivery of public services. The grant program also serves the public purpose of stimulating economic growth and activity in the State by creating business and employment opportunities through the sale and installation of wind resistive devices.
SECTION 2. (a) There is established a special fund to be designated as the loss mitigation grant fund. The fund shall consist of moneys appropriated for the purpose of the fund and all interest earned or accrued on moneys deposited in the fund.
(b) Moneys in the fund shall be expended by the insurance commissioner to administer the wind resistive device grant program under this Act, including costs of marketing the program. Any law to the contrary notwithstanding, the insurance commissioner may use the moneys in the fund to employ or retain, by contract or otherwise, and without regard to chapters 76 and 78, necessary professional, expert, managerial, technical, and support personnel to implement and carry out the purposes of this Act. Disbursements from the fund shall not be subject to chapter 42F, 91, or 103D.
(c) The insurance commissioner shall annually submit a report to the director, governor, and legislature on the use of the wind resistive device grant fund. The report shall provide statistical information on program participation. The report shall be submitted no later than twenty days prior to the convening of each regular session.
SECTION 3. (a) The insurance commissioner shall develop and implement a pilot wind resistive device grant program to encourage the installation of wind resistive devices. The insurance commissioner may, over the three years of the grant program, spend up to $30,000,000 from the loss mitigation grant fund for the grant program, which amounts shall include the costs of administering, operating, and marketing the grant program.
(b) Subject to the availability of funds and pursuant to the standards of this section, the insurance commissioner shall award grants for wind resistive devices:
(1) That reimburse fifty per cent of the costs of wind resistive devices, and of their installation and inspection, up to a maximum total reimbursement of $2,100 per dwelling;
(2) On a first-come, first-served basis;
(3) Only for a wind resistive device or devices installed in a single or multi-family residential dwelling.
(c) Grants shall be awarded for the installation of the following types of wind resistive devices only:
(1) Uplift restraint ties at roof ridges and roof framing members to wall or beam supports;
(2) Additional fastening of roof sheathing and roof decking for high wind uplift;
(3) Impact and pressure resistant exterior opening protective devices; and
(4) Wall-to-foundation uplift restraint connection strengthening for wood foundation posts on footings.
The description of, and specifications, guidelines, and requirements for these wind resistive devices shall be further developed and determined, and may be amended, narrowed, or expanded by the insurance commissioner in the insurance commissionerís sole discretion.
(d) A grant may be made to an applicant only if the applicant has:
(1) Met the descriptions, specifications, guidelines, and requirements established by the insurance commissioner for the grant program;
(2) Filed a completed application on forms prescribed by the insurance commissioner, together with all supporting documentation required by the insurance commissioner;
(3) In the case of a building with multiple dwellings, filed completed grant applications and supporting documentation for all dwellings in the building;
(4) Installed a wind resistive device or wind resistant devices that have been approved by the insurance commissioner;
(5) Fully paid the cost of the wind resistive device or devices and the installation and inspection costs for which the grant is sought, prior to applying for the grant. The grant shall reimburse only those costs or a portion thereof;
(6) Hired an inspector, determined by the insurance commissioner to be qualified, who has verified in writing that installation of the wind resistive device or devices is complete and complies with grant program specifications, guidelines, and requirements;
(7) Installed the wind resistive device or devices after July 1, 2002; and
(8) Provided any other information and met any additional requirements deemed necessary by the insurance commissioner.
(e) As used in this Act, unless the context otherwise requires:
"Wind resistive device" means a device or technique that increases the resistance of a building or other structure to damage from wind forces.
SECTION 4. There shall be no cause of action, claim for damages or relief, charge, or any other liability of any kind whatsoever created against the State, the fund, the insurance commissioner, or their respective agents, employees, or board, by, or relating to, the transfer of any moneys from the hurricane reserve trust fund to the loss mitigation grant fund or from the loss mitigation grant fund to the hurricane reserve trust fund or involving the loss mitigation grant program.
SECTION 5. There is appropriated out of the hurricane reserve trust fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2002-2003 to be deposited into the loss mitigation grant fund.
The sum appropriated shall be expended by the Hawaii hurricane relief fund for the purposes of this Act.
SECTION 6. There is appropriated out of the loss mitigation grant fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2002-2003 to develop and implement the loss mitigation grant program established in this Act.
The sum appropriated shall be expended by the insurance commissioner for the purposes of this Act.
SECTION 7. This Act shall take effect on July 1, 2002, and sections 1 through 3 and 5 through 7 shall be repealed on June 30, 2005.