HB 589 Summary

• Establishes the Hawaii Condominium Mutual Insurance Company as a domestic mutual insurance company to provide property and casualty insurance to high-rise residential condominiums and their unit owners.

• Creates a nine-member board of directors (eight voting members who are condominium owners/employees plus one public at-large member, plus the administrator as a nonvoting member) with initial appointments by the governor for one-year terms.

• Establishes an oversight council consisting of five members including a state senator, state representative, commerce department director, and two at-large members to monitor the company's compliance with its stated purpose.

• Creates a condominium loan fund to provide loans to associations that have experienced insurance premium increases of a specified percentage or more since January 1, 2022, with the director of commerce and consumer affairs authorized to make these loans.

• Appropriates unspecified sums from the hurricane reserve trust fund for the company's operations and start-up costs for fiscal years 2025-2026 and 2026-2027, and appropriates additional unspecified sums from general revenues for the loan fund.