HB20 • 2026

RELATING TO LAVA ZONE INSURANCE.

Budget

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: ILAGAN
Last action: 2026-04-20
Official status: Received notice of appointment of House conferees (Hse. Com. No. 786).
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about the amount of money in the fund, the number of beneficiaries, or the limits on administrative costs and subsidy amounts per homeowner.

Lava Zone Insurance Fund

This bill establishes a fund to subsidize insurance premiums for homeowners in lava zones 1 and 2 who are part of low-income households.

What This Bill Does

Establishes the Lava Zone Insurance Fund to help reduce insurance costs for eligible homeowners.
Requires the Department of Commerce and Consumer Affairs to conduct a study on the insurance market for homes in lava zones 1 and 2.
Appropriates funds from the general fund into the Lava Zone Insurance Fund.

Who It Names or Affects

Homeowners in lava zones 1 and 2 who are part of low-income households.
The Department of Commerce and Consumer Affairs, which will manage the fund and conduct studies.

Terms To Know

Lava zone: An area identified by the United States Geological Survey as having a high risk of volcanic activity.
Subsidize: To provide financial support to reduce costs for something, like home insurance premiums.

Limits and Unknowns

The bill does not specify the exact amount of money that will be in the fund.
It is unclear how many homeowners will benefit from this subsidy program.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment establishes a Lava Zone Insurance Special Fund to subsidize insurance premiums for homeowners in lava zones 1 and 2 who meet certain criteria, such as being part of a low-income household.

Establishes the Lava Zone Insurance Special Fund to provide subsidies for insurance premiums for properties in lava zones 1 and 2.
Defines eligibility requirements for receiving subsidies, including not owning real estate investment property and being part of a low-income household.
Limits administrative costs to no more than a specified percentage of the fund's moneys.

The exact amount of money allocated to the fund is unspecified in the provided text.
The specific subsidy amount per homeowner and duration are not detailed in the amendment.

SD1

Hawaii published version SD1

Plain English: This amendment requires the Legislative Reference Bureau to study ways to bring more insurers into the market for lava zones 1 and 2, determine necessary subsidies to lower insurance premiums, and report findings by a specific deadline.

The Legislative Reference Bureau must conduct a study on mechanisms to attract more insurers to provide coverage in lava zones 1 and 2.
The study will also assess the subsidy needed to reduce homeowners' insurance premiums in these areas to pre-downturn levels.
A report of the findings must be submitted to the legislature before the start of the regular session in 2027.

The amendment does not specify an exact amount for the appropriation, only that funds are needed from general revenues for fiscal year 2026-2027.
The effective date of July 1, 3000 is likely a placeholder and will need to be changed before final passage.

SD2

Hawaii published version SD2

Plain English: This amendment requires the Insurance Division to study ways to bring more insurers into the market for lava zones 1 and 2, determine necessary subsidies to lower insurance premiums, and report findings by a specific date.

The Insurance Division must conduct a study on mechanisms to attract more insurers to provide coverage in lava zones 1 and 2.
The study will also assess the subsidy needed to reduce homeowners' insurance premiums in these areas.
A detailed report of the findings must be submitted to the legislature by a specific deadline.

The exact amount of funding for the study is not specified, only that it will come from general revenues as necessary.

Bill History

2026-04-20 S
Received notice of appointment of House conferees (Hse. Com. No. 786).
2026-04-20 H
House Conferees Appointed: Matayoshi, Yamashita Co-Chairs; Ilagan, Pierick.
2026-04-17 S
Received notice of disagreement (Hse. Com. No. 780).
2026-04-16 H
House disagrees with Senate amendment (s).
2026-04-14 H
Returned from Senate (Sen. Com. No. 566) in amended form (SD 2).
2026-04-14 S
Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.
2026-04-09 S
48 Hrs. Notice 04-14-26.
2026-04-09 S
Reported from WAM (Stand. Com. Rep. No. 3675) with recommendation of passage on Third Reading, as amended (SD 2).
2026-04-07 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Lee, C..
2026-04-02 S
The committee(s) on WAM will hold a public decision making on 04-07-26 10:31AM; Conference Room 211 & Videoconference.
2026-03-30 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2026-03-30 S
Reported from CPN (Stand. Com. Rep. No. 3316) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2026-03-24 S
The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, Lamosao, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2026-03-20 S
The committee(s) on CPN has scheduled a public hearing on 03-24-26 9:35AM; Conference Room 229 & Videoconference.
2026-03-10 S
Referred to CPN, WAM.
2026-03-06 S
Passed First Reading.
2026-03-06 S
Received from House (Hse. Com. No. 5).
2026-03-05 H
Passed Third Reading with Representative(s) Garcia voting aye with reservations; Representative(s) Iwamoto, Pierick voting no (2) and Representative(s) Perruso excused (1). Transmitted to Senate.
2026-03-05 H
Reported from FIN (Stand. Com. Rep. No. 816-26), recommending passage on Third Reading.
2026-03-02 H
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.
2026-02-27 H
Bill scheduled for decision making on Monday, 03-02-26 10:00AM in conference room 308 VIA VIDEOCONFERENCE.
2026-02-27 H
The committee(s) on FIN recommend(s) that the measure be deferred until 03-02-26.
2026-02-24 H
Bill scheduled to be heard by FIN on Friday, 02-27-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-20 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Muraoka, Shimizu voting aye with reservations; Representative(s) Garcia, Pierick voting no (2) and Representative(s) Quinlan excused (1).
2026-02-20 H
Reported from CPC (Stand. Com. Rep. No. 688-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-02-18 H
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Kong, Tam; Ayes with reservations: Representative(s) Marten; 2 Noes: Representative(s) Iwamoto, Pierick; and 2 Excused: Representative(s) Ichiyama, Lowen.
2026-02-13 H
Bill scheduled to be heard by CPC on Wednesday, 02-18-26 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-21 H
Referred to CPC, FIN, referral sheet 1
2025-01-16 H
Introduced and Pass First Reading.
2025-01-10 H
Prefiled.

Official Summary Text

RELATING TO LAVA ZONE INSURANCE.
DCCA; Insurance Division; Study; Homeowners Insurance; Lava Zones; Report; Appropriation ($)
Requires the Insurance Division of the Department of Commerce and Consumer Affairs to conduct a study on the homeowners insurance market for lava zones 1 and 2. Requires a report to the Legislature. Appropriates funds. Effective 7/1/3000. (SD2)

Current Bill Text

Read the full stored bill text

HB20

HOUSE OF REPRESENTATIVES

H.B. NO.

20

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

rELATING
TO LAVA ZONE INSURANCE
.

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

����
SECTION 1.
�
The legislature finds that homeowners
residing in lava zones 1 and 2 face unique challenges caused by the inherent
volcanic hazards associated with their properties.
�
Based on these challenges, the legislature
further finds that it is appropriate to help alleviate some of the financial
burden of insurance premiums for these properties through the establishment of
a dedicated lava zone insurance fund.
�

The intent of the fund is to subsidize the cost of insurance premiums
for properties in lava zones 1 and 2, thereby reducing the disproportionate
burden placed upon homeowners because of the geographic location of their
properties.

����
The legislature additionally finds
that subsidizing the cost of insurance premiums for properties in these zones
will promote fairness, affordability, and accessibility in the insurance
market, encouraging homeownership and community resilience in these unique
geographical areas.

����
Accordingly, the purpose of this Act
is to ensure that people are not forced to lose their homes over a sudden rise
in homeowners' insurance by establishing a fair and equitable resource to
subsidize property insurance for homeowners residing in lava zones 1 and 2.

����
SECTION 2.
�
Chapter 431, Hawaii Revised Statutes, is
amended by adding a new section to article 10E to be appropriately designated
and to read as follows:

����
"
�431:10E-
�

Lava zone insurance fund.
�
(a)
�

There is established a lava zone insurance fund into which shall be
deposited the following moneys:

����
(1)
�
Appropriations
by the legislature to the special fund;

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(2)
�
Gifts,
donations, and grants from public agencies and private persons;

����
(3)
�
Any proceeds
collected by the department derived from fees charged to carry out the purposes
of this section; and

����
(4)
�
Civil,
criminal, and administrative penalties, fines, and other charges, if any,
collected under this chapter or any rule adopted pursuant to this chapter.

����
(b)
�

All interest earned or accrued on moneys deposited in the fund shall
become part of the fund.

����
(c)
�

Moneys in the fund shall be expended by the commissioner to subsidize
the cost of insurance premiums for homeowners in properties in lava zones 1 and
2; provided that:

����
(1)
�
A homeowner
does not own a real estate investment property;

����
(2)
�
The homeowner
is a part of a low-income household as determined by the United States
Department of Housing and Urban Development; and

����
(3)
�
No more than
per cent of the moneys may be used to cover
administrative and operational costs of the lava zone subsidy program.

����
(d)
�
The subsidy amount for each homeowner shall
not be more than $
and for a period of years.

����
(e)
�

Moneys deposited in the
fund shall not revert to the general fund.

����
(f)
�

The department shall
adopt rules in accordance with chapter 91 for the purposes of this section,
including the establishment of any fees,
penalties, fines, and other
charges
that may be needed to implement
the lava zone subsidy program.
"

����
SECTION 3.
�
Section 431:2-215, Hawaii Revised Statutes,
is amended by amending subsection (a) to read as follows:

����
"
(a)
�
All assessments, fees, fines, penalties, and
reimbursements collected by or on behalf of the insurance division under title
24, except for the commissioner's education and training fund (section
431:2-214), the patients' compensation fund (Act 232, Session Laws of Hawaii
1984), the drivers education fund underwriters fee (sections 431:10C-115 and
431:10G-107),[
and
] the captive insurance administrative fund (section 431:19-101.8)
to the extent provided by section 431:19-101.8(b),
and the lava zone insurance
fund (section 431:10E- ),
shall be deposited
into the compliance resolution fund under section 26-9(o).
�
All sums transferred from the insurance
division into the compliance resolution fund may be expended by the
commissioner to carry out the commissioner's duties and obligations under title
24."

����
SECTION
4
.
�
Section
431:10E-141, Hawaii Revised Statutes, is amended to read as follows:

����
"
[
[
]�431:10E-141[
]
�
Lava
zone defined.
]
�
Definitions.
�
As used in this article[
, "lava
]
:

����
"Lava
zone" means a
volcanic hazard zone identified by the United States Geological Survey on the
island of Hawaii.

����
"Lava
zone 1" means the land area classified by the United States Geological
Survey as lava flow hazard zone 1 and includes volcanic vents in the summits
and rift zones of Kilauea and Mauna Loa where vents have been repeatedly active
in historic time.

����
"Lava zone 2" means the land area classified by
the United States Geological Survey as lava flow hazard zone 2 and includes
areas adjacent to and downslope of zone 1.
"

����
SECTION 5.
�
There is appropriated out of the general fund
the sum of $ or so
much thereof as may be necessary for fiscal year 2025-2026 and the same sum or
so much thereof as may be necessary for fiscal year 2026-2027 to be deposited
into the lava zone insurance fund.

����
SECTION
6.
�
There is appropriated out of
the lava zone insurance
fund
the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 to
subsidize the cost of
insurance premiums for properties in lava zones 1 and 2 pursuant to section 2
of this Act
.

����
The sums

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

����
SECTION 7.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 8.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Property Insurance; Lava Zones; Premiums; Lava Zone
Insurance Fund; Appropriation

Description:

Establishes a Lava Zone Insurance Fund to subsidize the
cost of insurance premiums for properties in lava zones 1 and 2.
�
Defines lava zones 1 and 2.
�
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.