House Consumer Protection & Commerce committee advances package of consumer, insurance and condominium measures; defers major condo dispute bill

The House Committee on Consumer Protection & Commerce met March 12, 2025, in Conference Room 329 and took action on a slate of consumer- and housing-related bills, advancing most with amendments, adopting technical fixes, and deferring a heavily contested condominium dispute measure for further negotiation.

Committee members adopted the chair’s recommendations on measures ranging from installment-loan fees to changes to the Hawaii Property Insurance Authority (HPIA) and condominium disclosure rules. Some bills were amended on the floor of the committee—most notably changes to the proposed convenience fee for debit-card payments on installment loans and technical and sunset provisions added to several measures.

Why it matters: the package affects everyday consumers (installment-loan customers and renters), condominium owners and boards, and statewide insurance backstops that the committee and witnesses described as increasingly important after climate-driven losses such as the 2023 Lahaina wildfires.

Committee action and key outcomes

- Installment loans (SB1367 SD1). The committee agreed to change the proposed debit-card convenience fee to $1 per transaction (from $5) and added a three-year sunset; the committee further deferred the effective date to 07/01/3000 to allow additional stakeholder consultation. Multiple regulatory representatives and industry witnesses provided written testimony; Duane Young, Commissioner of Financial Institutions, said his office “stands on our written testimony” and was available for questions. Committee members pressed the Department of Commerce and Consumer Affairs (DCCA) to ask industry whether lowering the fee would affect whether lenders issue debit-card options.

- Stabilization of property insurance (SB1044 SD2). The committee moved the House position toward language in HB426 HD1, adopted DCCA-proposed technical amendments, and signaled support for mechanisms to expand capacity for hurricane coverage through HPIA and related funds. Jerry Bump, acting insurance commissioner at DCCA’s Insurance Division, summarized the agency’s written testimony and said the administration had drafted general-obligation bond language as a possible alternative to a direct loan and noted concerns about limiting servicing to domestic insurers.

- Insurance proceeds (SB1142 SD1). Testimony emphasized gaps for underinsured homeowners exposed in recent wildfire and other disaster losses. The committee approved a narrow amendment to include delinquency of “31 or more days” and struck subsections the chair said were not on point for insurance proceeds; the amendment also changed an interest-rate provision to the greater of a flat 2% or the institution’s money-market rate.

- Condominium reserves (SB253 SD2). The committee moved to further defer the bill’s effective date to allow further discussion while adopting the chair’s approach to encourage stronger disclosure and enforcement of existing reserve disclosure law (Act 199). Richard Emery and other industry witnesses supported creating enforceable disclosure obligations; consumer witnesses urged stronger enforcement mechanisms and an ombudsman office for condominium owners.

- Eviction mediation (SB825 SD2). The Judiciary and mediation providers testified in support of pre-eviction mediation; Jeff Crabtree of the Judiciary’s Center for ADR said, “it does work, it works even without rent relief,” while several housing stakeholders urged that any future program be paired with rental-relief funding if available. The committee resolved language inconsistencies (landlord v. landlord’s agent) and adjusted sunset and cross-reference text before passing the measure with amendments.

- Condominium alternative dispute resolution (SB146 SD1). The committee heard extended, often emotional testimony from owners and consumer advocates who said mediation and neutral-evaluation frameworks do not solve enforcement gaps. Jessica Herzog, a condominium owner and board member, urged stronger enforcement and an ombudsman-style resource for owners; Gregory Mesakian, who testified repeatedly across condo bills, argued the bill would increase costs for owners and remove important accountability provisions. After extended debate the committee deferred SB146 to a later date to allow further negotiation.

Votes at a glance

Most measures heard on March 12 were passed with amendments by voice vote or unanimous recorded vote with committee members present; several items were further deferred (date set to 07/01/3000 in the committee report) to allow additional drafting. The chair’s recommendations were adopted for SB102 SD2 (restaurants), SB1367 SD1 (installment loans, as amended), SB1373 SD2 (licensure actions), SB1142 SD1 (insurance proceeds, as amended), SB1044 SD2 (property insurance stabilization, as amended), SB253 SD2 (condominium reserves), and SB825 SD2 (eviction mediation). SB146 SD1 (condominiums — ADR/neutral evaluation) was deferred for further work.

What witnesses said and outstanding issues

Witnesses from DCCA, industry groups and consumer organizations provided the bulk of testimony. DCCA and agency witnesses repeatedly “stood on” written testimony and were available for questions. Industry participants—including the Hawaii Insurers Council, Hawaii Green Infrastructure Authority, and insurers—urged pragmatic fixes to expand market capacity and tighten loan or loan-approval language. Consumer advocates and multiple condominium owners urged creation of an ombudsman or enforcement office and warned that piecemeal bills would not solve structural problems in condominium governance.

Next steps

Most bills advanced to further drafting or were recommended for passage with amendments; the committee set several measures for further working-group discussions and deferred at least one high-profile condominium bill (SB146 SD1) so stakeholders can continue negotiations.

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