Hawaii-2014-SB250-Introduced

THE SENATE	S.B. NO.	250
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

relating to the hawaii hurricane relief fund.

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

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

"§431P- Refund of Money. (a) Any owner of eligible property as defined in section 431P-1 who, within ninety days after the effective date of this Act, submits to the Hawaii Hurricane Relief Fund proof of payment as defined in section 431P-1 of special mortgage recording fees as established by this chapter, shall receive a full refund from the hurricane reserve trust fund of those fees.

(b) Any owner of eligible property as defined in section 431P-1 who, within ninety days after the effective date of this Act, submits to the Hawaii Hurricane Relief Fund proof of payment as defined in section 431P-1 of the amount paid in policy premiums for hurricane insurance coverage issued by the Hawaii Hurricane Relief Fund, either directly or through a servicing carrier, shall receive a prorated refund from the hurricane reserve trust fund of those premiums paid.

(c) The pro rata percentage in subsection (b) of this section shall be calculated as provided in this section. After the ninety day deadline for submitting refund claims has expired, and all valid claims under subsection (a) of this section have been paid, the accumulated total net income left in the hurricane reserve trust fund, less $1,000,000, shall be distributed among the claimants as follows. If the funds available for distribution are sufficient, all persons with valid claims under subsection (b) shall be refunded the total amount claimed under subsection (b) for which proof of payment is provided. If sufficient funds are not available to refund all claimants in full, each claimant shall be assigned a percentage equal to the amount of policy premiums for which that claimant has provided proof of payment under subsection (b), divided by the total sum of policy premiums for which proof of payment has been provided by all claimants under subsection (b). Each claimant shall then be refunded that claimant's assigned percentage of the total funds available for distribution under this subsection.

(d) Refunds under this section shall be issued no later than sixty days after the ninety day deadline for submission of claims established in subsections (a) and (b) of this section. Any refund to which a property owner is entitled under this section, and which is not paid by the date required by this subsection, shall accrue interest on the amount unpaid at a rate equal to the prime rate for each calendar quarter plus two per cent, but in no event exceeding twelve per cent per year, until it is paid. As used in this subsection, "prime rate" means the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter."

SECTION 2. Section 431P-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Proof of payment" includes any one of the following:

(1) A copy of the owner of eligible property's mortgage closing statement showing the amount paid for a special mortgage recording fee;

(2) A copy of the page or pages from the owner of eligible property's homeowner's policy packets showing the coverage limits, deductible, servicing carrier, and policy premiums for the Hawaii Hurricane Relief Fund issued hurricane insurance, for each year the policy was in force;

(3) A copy of a cancelled check for special mortgage recording fees paid;

(4) A copy of a cancelled check for policy premiums paid for hurricane insurance issued by the Hawaii Hurricane Relief Fund;

(5) Records from a financial institution proving payment by an owner of eligible property of special mortgage recording fees or of policy premiums for hurricane insurance issued by the Hawaii Hurricane Relief Fund; or

(6) Any other proof satisfactory to the officers of the Hawaii Hurricane Relief Fund that an owner of eligible property paid special mortgage recording fees or policy premiums for hurricane insurance issued by the Hawaii Hurricane Relief Fund."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________