SB 1142 Hawaii Senate · 2025 Regular Session

RELATING TO INSURANCE PROCEEDS.

Summary

Requires mortgage servicers to comply with certain requirements regarding the disbursement of insurance proceeds for residential real estate that has been destroyed or damaged. Effective 7/1/3000. (HD1)

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Mar 2025

House Passage

Apr 2025

Governor

Introduced Jan 17, 2025 Last action Apr 21, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

SB1142_HD1 → SB1142_SD1 · 8 edits

MODERATE

This bill establishes new rules for how mortgage servicers must disburse insurance proceeds when residential property is damaged or destroyed. It requires servicers to disclose disbursement conditions, approve repair plans, and release funds based on specific milestones and borrower payment status. The bill also mandates interest-bearing accounts for held funds, requires disclosure of mortgage interest rates, and sets a future effective date of July 1, 2050.

Scope change

New requirements apply to all mortgage servicers handling insurance proceeds for damaged or destroyed residential real estate in Hawaii, regardless of prior legislation.

REQUIREMENT

Mortgage servicers must disclose disbursement conditions to borrowers upon request and may provide information electronically.

Borrowers must create repair or rebuild plans with specific milestones that trigger insurance disbursements.

Servicers must approve or deny repair plans within 30 days of receipt.

Servicers must hold undistributed funds in interest-bearing accounts at rates not less than federal money market account rates.

Servicers must disclose mortgage interest rates and provide a primary point of contact for borrowers.

Servicers must retain all written and electronic communications with borrowers for at least four years.

FISCAL

Disbursement thresholds and amounts vary based on whether borrowers are delinquent and the total insurance proceeds amount.

TIMELINE

The bill is set to take effect on July 1, 2050.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 8, 2025

Amended

Senate disagrees with House amendments.

upper

Apr 8, 2025

Introduced

Received from House (Hse. Com. No. 594).

upper

Apr 4, 2025

Lower · Passed

Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kapela excused (2). Transmitted to Senate.

lower

Apr 1, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Alcos.

lower

Mar 21, 2025

Committee

Reported from CPC (Stand. Com. Rep. No. 1481) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Mar 12, 2025

Lower · Passed

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Iwamoto, Kong, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Ichiyama, Lowen.

lower

Mar 6, 2025

Committee

Referred to CPC, FIN, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 265) in amended form (SD 1).

lower

Mar 4, 2025

Upper · Passed

Report adopted; Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 25, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 5 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 20, 2025

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-25-25 9:34AM; Conference Room 229 & Videoconference.

upper

Jan 23, 2025

Committee

Referred to CPN.

upper

Jan 17, 2025

Introduced

Introduced.

upper

3 primary · 0 co-sponsors