HB 565 Summary

• Establishes the State Self-Insurance Against Property and Casualty Risks Special Fund administered by the Comptroller through the risk manager to provide self-insurance coverage for property and casualty losses to state agencies.

• Special fund pays claims for losses including repair or replacement of buildings and structures, replacement of damaged contents, and provision of alternate structures during repairs.

• Authorizes the Comptroller to establish a captive insurance program under Hawaii law to insure losses and risks of state agencies, including executive, legislative, judicial branches and higher education institutions.

• Comptroller through the risk manager shall approve business plans, determine coverage amounts, establish premium collection processes, manage capital requirements, and handle day-to-day operations and claim procedures for the captive insurance program.

• Appropriates unspecified general revenues to the special fund for fiscal year 2023-2024 and authorizes expenditures from the special fund by the Department of Accounting and General Services (effective June 30, 3000).