SB1375

THE SENATE	S.B. NO.	1375
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE STRENGTHEN HAWAII HOMES PROGRAM.

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

SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new article to be appropriately designated and to read as follows:

"ARTICLE

STRENGTHEN HAWAII HOMES

§431: –A Purpose. This act shall be known and may be cited as the "Strengthen Hawaii Homes Act."

§431: -B Definitions. As used in this article, unless otherwise specified by statute:

"Applicant" means the homeowner of a single-family home who applies to receive funds from the program special fund for purposes of retrofit pursuant to this article.

"Commissioner" means the insurance commissioner of this State.

"Department" means the department of commerce and consumer affairs.

"Program" means the strengthen Hawaii homes program.

"Program special fund" means the strengthen Hawaii homes program special fund.

§431: –C Strengthen Hawaii Homes Program. (a) The program is established within the department. The program shall be administered by the commissioner.

(b) The program may award grants to single-family homeowners to help offset the cost of retrofits to protect their home against wind damage pursuant to the standards in section 431: -G.

(c) This article does not create an entitlement for property owners or obligate the State in any way to fund the inspection or mitigation of residential property in this State. Implementation of the program is subject to annual legislative appropriations, receipt of federal grants or funds, and receipt of other sources of grants or funds. The department may obtain grants or funds from the federal government or other funding sources to supplement the financial resources of the program that may be provided by the state.

(d) The program may apply for financial grants to mitigate single family homes against windstorm damage consistent with this article.

(e) All mitigation projects conducted under this article shall be contingent upon the single-family homeowner applicant securing all required local permits and applicable inspections in compliance with local building codes and the Insurance Institute for Business and Home Safety Fortified Homes Program or similar program approved by the commissioner, by order, which shall not constitute rulemaking under chapter 91.

(f) All mitigation projects conducted under this article are subject to random reinspection of all projects by the commissioner. Owners of any property mitigated under this article shall comply with any reinspection request from the commissioner.

(g) Failure to comply with a reinspection request in subsection (f) may result in the commissioner requiring a homeowner to repay the grant amount, either in full or in part.

§431: -D Establishment of strengthen Hawaii homes program special fund; availability; transfer of excess amounts; minimum and maximum limits.

(a) There is established within the state treasury the strengthen Hawaii homes program special fund, into which shall be deposited:

(1) All federal grants or funds received on behalf of the program;

(2) Appropriations made by the legislature to the fund; and

(3) All grants or funds that may be received from other sources.

(b) Moneys in the program special fund shall be available for the following purposes:

(1) To administer the program; and

(2) To award grants to single-family homeowners to help offset the cost of retrofits to protect their home against wind damage.

(c) Any unexpended or unencumbered moneys remaining in the program special fund at the close of each fiscal year that are deemed by the director of finance to be in excess of the program special fund necessary to carry out the purposes of this program over the next following fiscal year shall remain in the fund and shall not lapse to the credit of the state general fund.

(d) Any amount to be deposited into the program special fund from the appropriations and grant money collected under this chapter that causes the program special fund to exceed $ shall be deposited into the general fund. No further deposits from the appropriations and grant money collected under this chapter shall be made into the program special fund until the balance of the program special fund drops below $ , in which event the two and one-half percent of the appropriations and grant money collected under this chapter shall be deposited into the special program fund until the balance equals $ .

§431: –E Strengthen Hawaii homes program administrator and requirements. (a) The commissioner is authorized to delegate the powers and responsibilities incurred under this article to a third party as necessary.

(b) The commissioner, without regard to chapter 103D, may contract with a third party to operate and manage the program.

(c) A third party contracted pursuant to this section shall be subject to oversight by the commissioner and shall report to the commissioner twice a year and upon request of the commissioner.

(d) A third party contracted pursuant to this section shall satisfy the qualification requirements established by the commissioner including having experience and expertise in:

(1) Residential resilience technologies and methods; and

(2) Identifying, developing, administering, and implementing residential resilience management and community-based infrastructure programs.

(e) The duties and responsibilities of a third party contracted under this section shall be established by the commissioner, and shall include furthering the objectives of the program under section 431: -F(b).

§431: -F Objectives; applications for grants. (a) The program shall not be deemed to be a governmental body as defined in section 103D-104 and shall be exempt from the requirements of chapter 103D; provided that all moneys transferred to the program shall be comprised solely of program special funds, funds provided by the federal government, or private funding sources. The program shall not expend more than eight per cent of the contracted funding in any fiscal year, or other reasonable percentage determined by the commissioner by order, for administration of the programs established under this article.

(b) The objectives of the grant program shall include:

(1) Identifying, developing, administering, promoting, implementing, and evaluating programs, methods, and technologies that support residential resilience and structural improvement programs;

(2) Encouraging the continuance or improvement of efficiencies made in the production, delivery, and use of residential resilience programs and services;

(3) Using the climate resilience expertise and capabilities that have been developed or may be developed in the State and consulting with state agency experts;

(4) Promoting program initiatives, incentives, and market strategies that address the needs of persons facing the most significant barriers to participation;

(5) Promoting coordinated program delivery, including coordination with insurance companies and others regarding the delivery of low-income residential resilience assistance, and other residential structural improvement programs;

(6) Considering innovative approaches to delivering residential resilience services, including strategies to encourage third-party financing and customer contributions to the cost of residential resilience services;

(7) Submitting, to the commissioner for review and approval, a multi-year budget and planning cycle that promotes program improvement, program stability, and maturation of programs and delivery resources; and

(8) Educating and training the construction and home development trades on up-to-date technologies and construction techniques to maximize the use of cost-effective residential resilience improvements.

(c) Applications for grants shall be filed electronically in the form and manner prescribed by the commissioner and shall contain such information as the department shall require. At minimum, an applicant shall show:

(1) The name of the requesting individual applicant;

(2) The purpose for the grant;

(3) The address of the single-family home requesting to receive the grant;

(4) The TMK number, derived from the Hawaii tax map key, of the single-family home;

(5) The proposed plan(s) to comply with the program if the applicant receives a grant pursuant to this section;

(6) Receipt of the licenses and permits necessary to carry out activities performed pursuant to the plan;

(7) A proposed timeline for compliance with the program;

(8) A declaration that the grant shall only be used for activities that are consistent with the purpose of the program and this article; and

(9) The applicant's household income does not exceed 140 per cent of the area median income.

§431: –G Eligibility. (a) To be eligible for a grant under this article, a residential property must meet the following minimum requirements:

(1) The property to be mitigated shall be a single-family home in good repair unless it is damaged from a catastrophic windstorm event. The program special fund shall be used for improvements described in paragraph (4) and shall not be used for maintenance or repairs, provided that they may be used for the improvements identified through the prequalification process described in paragraph (2) when performed in conjunction with repairs or reconstruction necessitated by damages from a catastrophic wind event;

(2) A certified Insurance Institute for Business and Home safety evaluator shall prequalify the property to be mitigated as capable of being mitigated and identify all improvements required to achieve Insurance Institute for Business and Home Safety FORTIFIED Roof™, FORTIFIED Silver™, or FORTIFIED Gold™, or similar standard approved by the commissioner, by order, which shall not constitute rulemaking under chapter 91;

(3) The owner of a single-family home seeking a grant or funding from the program shall obtain bids from at least three Insurance Institute for Business and Home Safety certified contractors;

(4) The owner of the property to be mitigated shall cause all of the improvements to be completed for the home to achieve the Insurance Institute for Business and Home Safety IBHS FORTIFIED Roof™, FORTIFIED Silver™, FORTIFIED Gold™, or a similar standard approved by the commissioner under paragraph (2);

(5) The owner of the property to be mitigated shall provide proof of an in-force policy providing wind insurance on the home; and

(6) If the property to be mitigated is in a special flood hazard area, the owner shall provide proof of an in-force flood insurance policy. The flood policy may be from the national flood insurance program or a private carrier.

(b) To be awarded a grant, an applicant shall comply with the following terms and conditions:

(1) The applicant has applied for and received all applicable licenses and permits, as required to conduct the activities or provide the services for which a grant is awarded;

(2) The applicant agrees to comply with all applicable federal, state, and county laws;

(3) The applicant shall comply with other criteria as the commissioner may prescribe, by order, which shall not constitute rulemaking under chapter 91;

(4) The applicant shall not conduct any activities and improvements inconsistent with the purpose of the program; and

(5) The applicant shall indemnify and hold harmless the program, the department, the State of Hawaii, and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder, and shall provide proof of sufficient insurance to provide this indemnification if requested to do so by the program or commissioner.

(c) Documents, materials, and other information submitted to the commissioner or third party contracted under section 431: –E by applicants or insurers in support of a grant application shall be confidential and not be subject to disclosure under chapter 92F, subpoena, or discovery, and shall not be admissible as evidence in any private civil action.

(d) Grants issued by the program shall be used to mitigate the property described in the application to comply with the Insurance Institute for Business and Home Safety FORTIFIED Roof™, FORTIFIED Silver™, or FORTIFIED Gold™, or a similar standard approved by the commissioner under subsection (a)(2).

(e) Failure to complete a mitigation project as described in subsection (d) within twelve months of the latter of the commissioner's approval of a grant or the county issuance of required permits shall result in forfeiture of the grant by the applicant.

(f) Grant funds shall be paid only after a certificate has been issued for the mitigated property for compliance with the Insurance Institute for Business and Home Safety FORTIFIED Roof™, FORTIFIED Silver™, or FORTIFIED Gold™, or a similar standard approved by the commissioner under subsection (a)(2) and the certificate has been received by the commissioner. Grant funds shall be paid on behalf of the retrofitted property owner, directly to the contractor who performed the retrofit work.

(g) Applications will be accepted through a lottery system conducted by the commissioner, provided that priority will be given to applicants submitting applications for their primary residence and other criteria that the commissioner may determine appropriate to meet the purpose of the program. The commissioner may establish lottery procedures and additional criteria by order, rather than by rulemaking, and the procedures and criteria shall not be subject to chapter 91.

§431: –H Service providers. (a) An applicant who is awarded a grant under this article shall utilize a contractor licensed under chapter 444, with a surety bond of no less than $25,000 guaranteeing completion of work, with an active Institute for Business and Home Safety FORTIFIED Roof™ contractor certification or FORTIFIED professional certification to perform all work related to a grant issued under this article.

(b) The commissioner shall not endorse any contractor to perform work related to this article.

(c) The commissioner shall not be liable for any amounts owed to a contractor that exceed the amount of an awarded grant.

(d) An evaluator for any mitigation project for which a grant application has been submitted to the program may not serve as a contractor for any mitigation project under this article or receive any funds from the program.

§431: –I Confidentiality. Documents, materials, and other information submitted to the commissioner or administrator contracted under section 431: –C by property owners or insurance companies in support of a grant application shall be confidential by law and privileged, shall not be subject to open records requests, shall not be subject to chapter 92F, shall not be subject to subpoena, and shall not be subject to discovery or admissible as evidence in any private civil action; provided that the commissioner may use the documents, materials, or other information submitted in support of a grant application in the furtherance of any regulatory or legal action brought as a part of the commissioner's duties.

§431: –J Rules. The commissioner may adopt rules pursuant to chapter 91 to carry out this article."

SECTION 2. Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

(1) Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

(2) Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures. Any contract may be for any period not exceeding one year;

(3) Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

(4) Positions filled by the legislature or by either house or any committee thereof;

(5) Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

(6) Positions filled by popular vote;

(7) Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

(8) Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

(9) One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

(10) First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

(11) (A) Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

(B) Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

(D) Members of the faculty of the [~~University~~] university of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

(12) Employees engaged in special, research, or demonstration projects approved by the governor;

(13) (A) Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

(B) Positions filled with students in accordance with guidelines for established state employment programs; and

(C) Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

(14) A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

(15) Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

(16) Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following: behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

(17) Positions specifically exempted from this part by any other law; provided that:

(A) Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

(B) All of the positions defined by paragraph (9) shall be included in the position classification plan;

(18) Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

(19) Household employees at the official residence of the president of the [~~University~~] university of Hawaii;

(20) Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

(21) Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

(22) Positions of the federally funded expanded food and nutrition program of the [~~University~~] university of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

(23) Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

(24) The sheriff;

(25) A gender and other fairness coordinator hired by the judiciary;

(26) Positions in the Hawaii National Guard youth and adult education programs;

(27) In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

(28) Administrative appeals hearing officers in the department of human services;

(29) In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

(30) In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

(31) The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

(32) In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

(33) The executive director and seven full-time administrative positions of the school facilities authority;

(34) Positions in the Mauna Kea stewardship and oversight authority;

(35) In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

(36) In the social services division of the department of human services, the business technology analyst;

[[](37)[]] The executive director and staff of the 911 board;

[[](38)[]] Senior software developers in the department of taxation;

[[](39)[]] In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

[[](40)[]] The state fire marshal; [~~and~~]

[[](41)[]] The administrator for the law enforcement standards board[.]; and

(42) In the insurance division of the department of commerce and consumer affairs, full-time employees hired under the strengthen Hawaii homes program for the purpose of its administration and operations.

The director shall determine the applicability of this section to specific positions.

Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the strengthen Hawaii homes program special fund.

SECTION 4. There is appropriated out of the strengthen Hawaii homes program special fund, the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 for purposes of the establishment and implementation of the strengthen Hawaii homes program.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 5. There is appropriated out of the compliance resolution fund established pursuant to section 26-9(o) the sum of $1,500,000 or so much thereof as may be necessary for fiscal year 2025-2026 to establish and hire seven full-time equivalent (1.0 FTE) permanent positions within the insurance division of the department of commerce and consumer affairs to implement and administer the strengthen Hawaii homes program.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 6. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. This Act, upon its approval, shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

State Treasury; Department of Commerce and Consumer Affairs; Insurance Commissioner; Strengthen Hawaii Homes Program; Insurance Division; Appropriation

Description:

Establishes the Strengthen Hawaii Homes Program to encourage single-family homeowners to retrofit their homes to resist damage by providing for grants to help offset the cost of retrofits. Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

SB 1375: RELATING TO THE STRENGTHEN HAWAII HOMES PROGRAM.

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