Report Title:

Hurricane Reserve Trust Fund; Appropriation

Description:

Appropriates $29 million in general fund moneys to the Hurricane Reserve Trust Fund to restore moneys removed from the HRTF under Act 179, SLH 2002.

THE SENATE

S.B. NO.

309

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

MAKING AN APPROPRIATION TO THE HURRICANE RESERVE TRUST FUND.

 

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

SECTION 1. In 2002, the legislature passed Act 179, Session Laws of Hawaii 2002 (Act 179), which in part appropriated $29,000,000 out of the hurricane reserve trust fund established in chapter 431P, Hawaii Revised Statutes, and deposited that sum into the general fund. Upon further consideration of its actions under Act 179, the legislature finds that the hurricane reserve trust fund performs a vital purpose by providing the State and its citizens with protection from future hurricanes and a source of funds for affordable hurricane insurance if private insurers stop writing property insurance that includes coverage for hurricanes. The cessation of hurricane coverage underwriting may occur if a large enough hurricane strikes Hawaii or if the insurance or reinsurance markets harden following catastrophic events worldwide. As noted by the department of commerce and consumer affairs, Hawaii has a long term exposure to hurricanes, and it is not a question of "if", but "when" the next hurricane will occur.

The legislature further finds that the hurricane reserve trust fund needs to be preserved and strengthened, and that the funds that were removed from the fund in 2002 should be restored.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $29,000,000, to be deposited into the hurricane reserve trust fund.

The sum appropriated shall be expended by the Hawaii hurricane relief fund for the purposes for which the fund was established.

SECTION 3. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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