Bill Text: HI SB1320 | 2025 | Regular Session | Introduced
Bill Title: Relating To Settlement Of Claims Related To The Maui Wildfires.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-31 - The committee(s) on JDC has scheduled a public hearing on 02-07-25 9:25AM; Conference Room 016 & Videoconference. [SB1320 Detail]
Download: Hawaii-2025-SB1320-Introduced.html
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THE SENATE |
S.B. NO. |
1320 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO SETTLEMENT OF CLAIMS RELATED TO THE MAUI WILDFIRES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
(1) The Maui wildfires had a devastating impact on the residents of Maui, resulting in real and personal property damage, personal injury, wrongful death, emotional distress and inconvenience, and economic loss;
(2) Establishing
a trust fund to allow the State to respond with compassion and support for
those affected by the Maui wildfires, ensuring that victims or their personal
representatives are provided with fair and just compensation on a timely basis
is in the public interest;
(3) Contributing state funds to be used along with
contributions from others, including the county
of Maui, the Hawaiian Electric Company, the Kamehameha Schools, Charter
Communications/Spectrum, Hawaiian Telcom, and the West Maui Land Company for
the compromise and settlement of claims against the State and others related to
the Maui wildfires to compensate those who have suffered real and personal
property damage, personal injury, wrongful death, emotional distress and
inconvenience, or economic loss in the Maui wildfires is in the public interest;
(4) Settling claims related
to the Maui wildfires is an efficient mechanism to address the urgent and
exceptional situation caused by the Maui wildfires, and will offer a unique
ability to help those in need;
(5) The complexity and challenges of tort
litigation, including the length of time needed to
resolve lawsuits make it prudent to provide an alternative to litigation
through the State's contribution to the Maui wildfires settlement agreements
that will allow for the early compromise and settlement of claims and expedite
the compensation process for those impacted by the Maui wildfires;
(6) It is in the public interest to encourage
swift and fair resolution to claims arising from the Maui wildfires, thus
alleviating the burden on the judicial system and fostering community support,
unity, and recovery in the aftermath of the Maui
wildfires; and
(7) Individuals receiving compensation pursuant to
the Maui wildfires settlement agreements shall release
the State and other parties that contribute to the Maui wildfires settlement
agreements from further liability and shall voluntarily waive their rights to
pursue damages through litigation for real and personal property damage,
personal injury, wrongful death, emotional distress and inconvenience, and
economic loss contributing to a more efficient resolution process.
The
legislature further finds that the Maui wildfires settlement agreements reached
in November 2024 aim to resolve lawsuits related to the Maui wildfires. Under the proposed terms of the Maui
wildfires settlement agreements, the seven defendants – the State of Hawaii,
the county of Maui, the Hawaiian Electric Company, the Kamehameha Schools,
Charter Communications/Spectrum, Hawaiian Telcom, and the West Maui Land
Company, collectively agreed to pay $4.037 billion to provide compensation to
the approximately 2,200 affected parties who filed lawsuits. The State of Hawaii's contribution is
approximately $807,500,000, to be paid over four years. The State's settlement amount is in addition
to the State's $65 million contribution to the One Ohana Fund for wildfire
assistance.
The
allocation of funds and the determination of individuals compensation amounts
are still to be finalized.
Further,
the Hawaii Supreme Court is currently reviewing questions regarding whether
insurance companies can recover payments made for Maui wildfire damages from
policyholders. The resolution of this
matter could affect the settlement's implementation.
Consequently,
the legislature finds that authorizing the expenditure of public moneys as the
State's payment to the compromise and settlement of claims arising from the
Maui wildfires will provide a means of compensation to any individual or
personal representative of a deceased individual who suffered real and personal
property damage, personal injury, wrongful death, emotional distress and
inconvenience, or economic loss as a result of the Maui wildfires, and will
offer a timely and compassionate resolution to those affected by the Maui
wildfires while relieving the burden on the judicial system and contributing to
the rebuilding of lives and community.
The State's contribution to the settlement of claims will be distributed
pursuant to the Maui wildfires settlement agreements.
Further,
the legislature finds that the Maui wildfires settlement trust fund is
recognized as a trust fund, where the claimants of the Maui wildfires
settlement hold a vested beneficial interest that was established by a
legislative appropriation that restricts the use of the trust fund exclusively
for settling claims arising from the Maui wildfires and covering its
administrative costs.
SECTION
2. Chapter 28, Hawaii Revised Statutes,
is amended by adding to part I a new section to be appropriately designated and
to read as follows:
"§28- Maui
wildfires settlement trust fund.
(a) There is established in
the state treasury the Maui wildfires settlement trust fund, which shall be
administered by the attorney general, and into which shall be deposited:
(1) Appropriations made by the legislature to
the trust fund;
(2) All interest accruing from the investment
of moneys in the trust fund; and
(3) Loans made to the trust fund.
(b) Moneys in the Maui wildfires settlement trust
fund shall be used for the following purposes:
(1) Payment of eligible claims pursuant to the
Maui wildfires settlement agreements; and
(2) Payment of administrative costs relating to
the Maui wildfires settlement agreements.
(c) The Maui wildfires settlement trust fund
shall be terminated upon payment of all claims and costs relating to settlement
of claims under the Maui wildfires settlement agreements. Upon termination, moneys in the trust fund
shall revert back to the State and shall lapse to the general fund, provided
that any moneys advanced to the trust fund as a loan shall be repaid without
interest.
(d) The director of finance may loan moneys to
the Maui wildfires trust fund from the general, special, or revolving funds of
the State which in the director of finance's judgment are in excess of the
amounts necessary for the State's requirements and will not impede or hamper
the necessary financial operations of the State. The loans shall be without interest. All loans shall be repaid upon demand of the
director of finance.
(e) Upon approval of the governor, the attorney
general may expend up to the balance in the trust fund for costs as authorized
by this section.
(f) Any individual who receives compensation from
the Maui wildfires settlement agreements under this Act shall execute a release
that releases the State from any and all liabilities arising out of the Maui
wildfires.
(g) The department of the attorney general shall
submit a report to the legislature no later than thirty days prior to the
convening of each regular session, which shall include their receipts and
disbursements of the Maui wildfires settlement trust fund for the prior fiscal
year."
SECTION
3. There is appropriated out of the
general revenues of the State of Hawaii the sum of $400,000,000 or so much
thereof as may be necessary for fiscal year 2025-2026 and the sum of
$407,500,000 or so much thereof as may be necessary for fiscal year 2026-2027
to be deposited into the Maui wildfires settlement trust fund to fund the
State's contribution to the settlement of claims related to the August 8, 2023,
Maui wildfires and for the payment of administrative expenses relating to the
Maui wildfires settlement agreements.
The sums appropriated shall be expended by the department of the attorney general.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act, upon its approval, shall take effect on July 1, 2025.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Maui Wildfires Settlement Trust Fund Established; General Fund
Description:
Makes general fund appropriations for fiscal years 2025-2026 and 2026-2027 to fund the settlement of claims related to the Maui wildfires. Establishes the Maui Wildfires Settlement Trust Fund to be administered by the Attorney General.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
