Bill Text: HI HB2036 | 2024 | Regular Session | Introduced

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Bill Title: Relating To Life-safety Systems.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Introduced) 2024-01-24 - Referred to CPC, FIN, referral sheet 2 [HB2036 Detail]

Download: Hawaii-2024-HB2036-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2036
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to life-safety systems.

 

 

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

 

     SECTION 1.  The legislature finds that hundreds of high‑rise residential buildings presently lack life-safety systems, most notably fire sprinklers, due to the absence of modern requirements for those constructed before 1975.

     The legislature also finds that the presence of fire sprinkler systems dramatically reduces death rates and property loss.  Between 2006 and 2019, forty-two individuals died in fires in Honolulu, with forty-one of those fatalities occurring in structures without fire sprinklers compared to just one in a structure with sprinklers.  During the same period, two hundred and seven individuals were injured in fires within structures lacking sprinklers, compared to twelve in structures with sprinklers.  An assessment of damage loss also exhibits substantial variance, with an estimated $332,131,913 lost in structures lacking sprinklers versus $21,709,215 in structures with sprinklers.

     There is no equivalent alternative as effective in stopping fires as an automatic fire sprinkler system.  For this reason, the city and county of Honolulu enacted ordinance 18-14, requiring high-rise residential buildings built before 1975 to either install an automatic fire sprinkler system or be subjected to future building fire and life safety evaluation code assessments.

     Cost is the most substantial barrier for high-rise residential buildings to implement life-saving modifications.  Act 199, Session Laws of Hawaii 2023, authorized condominium associations to forecast a loan or special assessment to fund life safety equipment or installations in counties with a population greater than five hundred thousand.  While this sought to address the financial challenges the required changes will place on hundreds of aging buildings, it failed to offer tangible assistance.

     The purpose of this Act is to establish a program to provide interest-free loans to condominiums to fund sprinkler installations or alternative improvements.

     SECTION 2.  Chapter 514B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  Fire-free loan program

     §514B-A  Definitions.  As used in this part, unless the context otherwise requires:

     "Administrator" means the director of commerce and consumer affairs.

     "Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including without limitation, banks, savings banks, savings and loan companies or associations, financial services loan companies, and credit unions.

     "Fund" means the fire-free revolving fund established pursuant to section 514B-G.

     "Program" means the fire-free loan program established pursuant to section 514B-B.

     §514B-B  Fire-free loan program; established; purpose.  There is established the fire-free loan program.  The purpose of the program shall be to provide interest-free loans for condominiums to install sprinklers or alternative improvements.

     §514B-C  Administration.  (a)  Except as otherwise provided, the director of commerce and consumer affairs is designated as the administrator responsible for the administration of this part.  The director shall:

     (1)  Administer loans for the purpose and according to this part; and

     (2)  Adopt rules under chapter 91 to carry out the purposes of this part.

     (b)  The department may contract with any financial institution for services including servicing or administering loans pursuant to this section.

     (c)  The administrator shall prioritize making loans to projects determined to have the greatest impact on reducing the risk of loss of life and property.

     §514B-D  Eligibility of loans.  A loan may be made to an association to:

     (1)  Install an automatic fire sprinkler system throughout the applicable building or buildings; or

     (2)  Make the necessary improvements under a county ordinance that are an alternative to an automatic fire sprinkler system.

     §514B-E  Terms.  No loan made under the program shall:

     (1)  Include any portion or item of loss covered by a contract of insurance or for which the applicant receives assistance from any other federal, state, or county program of disaster relief;

     (2)  Be made for a term exceeding twenty years;

     (3)  Bear interest; or

     (4)  Exceed $          .

     The commencement date for the repayment of the first installment of principal only for each loan may be deferred for six months from the date of the loan.

     §514B-F  Default.  If the applicant is in default of any term or condition in any loan agreement made pursuant to this part, the unpaid balance of the loan, including interest, shall, at the option of the administrator, become due and payable forthwith, and the administrator may foreclose any mortgage by any method provided by law.

     §514B-G  Fire-free revolving fund.  (a)  There is established the fire-free revolving fund, into which shall be deposited:

     (1)  Moneys appropriated by the legislature;

     (2)  Investment and interest earnings of the fund;

     (3)  Moneys received as repayment of loans, including payments received on account of principal; and

     (4)  All other moneys received by the fund from any other source.

     (b)  Moneys in the fund shall be used to make loans under the program.  Moneys in the fund also may be used for administrative support associated with the program, including the hiring of necessary staff."

     SECTION 3.  In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $          , or       per cent.  The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the need provided for by this Act.

     SECTION 4.  There is appropriated out of the general fund the sum of $           or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the fire-free revolving fund.

     SECTION 5.  There is appropriated out of the fire-free revolving fund the sum of $          or so much thereof as may be necessary for fiscal year 2024-2025 for loans under the fire-free loan program and administration of the fire-free loan 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 2 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 shall take effect on July 1, 2024.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Fire-free Program; DCCA; Condominiums; Fire Sprinklers; Loans; General Fund Expenditure Ceiling Exceeded; Appropriation

 

Description:

Establishes the Fire-free Program within the Department of Commerce and Consumer Affairs to provide interest-free loans to condominiums for the installation of fire sprinklers or alternative life safety improvements.  Declares that the appropriation exceeds the state general fund expenditure ceiling for 2024-2025.  Appropriates moneys.

 

 

 

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