RELATING TO THE STRENGTHEN HAWAII HOMES PROGRAM.

HB1056

�
HOUSE OF
REPRESENTATIVES

H.B. NO.

1056

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.

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�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.

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(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.

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

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(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.

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(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.

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(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 $ .

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�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.

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(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).

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�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;

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(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;

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(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.

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�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;

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(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);

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

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(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;

���������
(C)
�
The special assistant to the state
librarian and one secretary for the special assistant to the state librarian;
and

���������
(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.

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SECTION
7.
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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.
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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.