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Senate committees defer SB696 to flesh out emergency management tax credits, grants and shelters
Summary
Senators heard testimony supporting creation of an office to plan tax credits, grants and shelters for hurricane preparedness but deferred SB696 after questions about details and insurance division concerns.
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SB696, a bill to appropriate funds for an office of the governor in collaboration with the insurance division of the Department of Commerce and Consumer Affairs to plan and administer income tax credits, grants to fortify low-income residences, oversee shelter development, and hire staff, was heard by a joint session of the Senate committees on Public Safety & Military Affairs and Commerce & Consumer Protection on Feb. 10, 2025.
The measure drew written and oral testimony from state officials and outside groups. Stella Kam, deputy attorney general, offered comments and provided suggested language in written testimony. Tom Yamachika of the Tax Foundation of Hawaii told the committees the bill was “too vague to be enacted into law,” saying details were missing about eligibility and mechanics for tax credits. Dr. Keoni Dudley, testifying in support, said the office was “terribly, terribly important,” arguing Hawaii lacks a centralized preparedness office and funding to plan for major hurricanes and urging lawmakers to tie SB696 to five related preparedness bills.
Jerry Bomp, acting insurance commissioner, said the insurance division submitted comments and made concerns available to the committees. Committee members noted the volume of written testimony on the measure and questions raised by the insurance division and other commenters.
After testimony and questions, committee members moved to decision making and recommended deferral. The joint committees’ recommendation was to defer SB696 to allow staff to work through the issues raised and to refine statutory language and program details.
The record shows the measure was not advanced out of committee at this hearing; no final enactment, appropriation level, or eligibility criteria for tax credits or grants were adopted. The committees asked stakeholders to provide additional language and clarifications on eligibility, program administration, and interactions with existing state and federal disaster programs.
Moving forward, sponsors and agency staff will need to provide detailed eligibility criteria, cost estimates, and draft administrative rules to resolve concerns flagged by the insurance division and fiscal and tax commentators.
Votes at the decision-making phase were procedural: the joint recommendation recorded was to defer the measure for further work and no roll-call adoption to pass was recorded at this hearing.

