The Hawaiʻi State Legislature has reached the halfway point of its 2025 session, with lawmakers facing a critical deadline known as “crossover,” where bills must pass their originating chamber to survive. Several key issues are taking center stage.
Insurance Crisis
One of the most pressing matters is stabilizing the state’s insurance market. Senate lawmakers have passed a bill permitting the state to issue hurricane and general insurance policies to condominiums that have been dropped by private insurers. This measure aims to protect condo owners from the unregulated insurance market, which can lead to exorbitant homeowner association fees.
The Hawaii Property Insurance Association would handle general insurance, while the Hawaii Hurricane Relief Fund, established after Hurricane ʻIniki in 1992, would manage hurricane insurance. Although the fund’s board began meeting last year, it hasn’t issued an insurance policy since 2000. Rep. Scot Matayoshi will hear the bill in his Consumer Protection and Commerce Committee.
Matayoshi expressed concerns about financial backing: “I don’t know what kind of financial backing, what kind of reinsurance they’re able to get right now for this because they just haven’t gotten it yet… They’re going to need to get stood up, get reinsurance at a certain rate and amount, and I think that’s going to determine how many policies and to what amounts they can issue.”
Combating Illegal Fireworks
Another priority is addressing the issue of illegal fireworks. Both legislative chambers have approved bills that would increase penalties for repeat offenders, and allow police officers to issue $300 citations for violations. The House has also passed a measure allowing drone footage to be used as probable cause for arrest.
Climate Mitigation
Funding climate initiatives is a key focus. The Senate passed a measure proposed by Gov. Josh Green that would use interest from the state’s $1.5 billion rainy day fund for climate mitigation efforts. They also approved a bill to increase the state’s transient accommodations tax by 1.75 percentage points. This would bring the tax on visitor lodgings to 12%, with the additional revenue split between funds for climate resiliency and environmental infrastructure specifically in resort areas.
State Budget and Federal Cuts
Meanwhile, the House is preparing to vote on the state’s budget. The House Finance Committee added $200 million to the rainy day fund to prepare for potential federal funding cuts.
Finance Chair Kyle Yamashita said, “We did go over a little bit, but it’s because we put that $200 million into the budget reserve fund, but that is just to send a clear message that the House believes that in light of the current situation, and we don’t know what the out years will be, it’ll be wise for the state to tuck away some money just for the out years.”
Yamashita clarified that the budget remains balanced despite the addition. The Council on Revenues will release updated revenue projections next week, which the Legislature will use to balance the state’s budget. The 2025 legislative session is scheduled to end on May 2.
