SB3234 - Property Insurance Stabilization

• Expands Hawaii Property Insurance Association authority to provide property insurance coverage to condominium buildings statewide (not limited to lava zones) with maximum 60-month coverage periods and requires repair/maintenance plans for eligibility.

• Establishes three new revenue sources to capitalize insurance funds: (1) higher transient accommodation tax on vacation rentals, (2) property insurance surcharge on conveyance tax with tiered rates based on property value, and (3) temporary property insurance stabilization fee on real property transactions.

• Reinstates special mortgage recording fee (last imposed in 2001) at the same rate and conditions to fund the Hawaii Hurricane Relief Fund, plus authorizes general obligation bonds and general fund appropriations as loans to the fund.

• Makes Hawaii Property Insurance Association and Hawaii Hurricane Relief Fund "insurers of last resort" requiring proof that coverage cannot be obtained from licensed insurers; requires member insurers to recoup assessment costs through premium surcharges rather than tax credits.

• Appropriates unspecified general funds and authorizes unspecified general obligation bonds as loans to the Hawaii Hurricane Relief Fund for capitalization and operations, to be repaid per procedures established in the fund's plan of operation.