Lawmakers agree to pay $807 million into Lahaina wildfires settlement fund
The measure was House Bill 1001, and the subject was settling claims related to the August 2023 Maui wildfires.
'This is a very important measure, and I appreciate the support of the Finance Committee to approve this, and the Senate and your Ways and Means Committee to approve this as well,' Rep. David Tarnas said to Sen. Karl Rhoads, his counterpart in negotiating passage of HB 1001 in conference committee.
If approved by the full House and Senate and signed into law by Gov. Josh Green, as is widely expected — HB 1001 was part of the administration's package of legislation this session — the state of Hawaiʻi will deposit $807 million into the Maui Wildfires Settlement Trust Fund over the next four years.
That is the state's share of a $4.04 billion global settlement that includes $1.99 billion from Hawaiian Electric Co. and $872.5 million from landowner Kamehameha Schools.
The rest of the monies are expected to come from West Maui landowners and telecommunications companies, including Hawaiian Telcom and Spectrum.
The trust fund will be used to settle lawsuits from more than 1,000 homeowners, businesses and others harmed by the fires, which took 102 lives. It will be used to compensate individuals or representatives of the dead who suffered real and personal property damage, personal injury, wrongful death, emotional distress and inconvenience, or economic loss as a result of the wildfires, according to the legislation.
The bill says the settlement 'will offer a timely and compassionate resolution to those affected by the Maui wildfires while relieving the burden on the judicial system and contributing to the rebuilding of lives and community.'
In February, the Hawaiʻi Supreme Court approved the settlement, rejecting a challenge from the insurance industry. Nearly 200 insurers had paid out more than $2.3 billion to home and business owners and were looking to recoup that money from lawsuits against HECO, Kamehameha Schools and other parties that allegedly allowed the fire to spread.
The fires were investigated by Hawaiʻi Attorney General Anne Lopez, the Maui Fire Department, the federal Bureau of Alcohol, Tobacco, Firearms and Explosives and HECO itself.
The allocation of state funds and the determination of individual compensation amounts have yet to be finalized, according to HB 1001. Kamehameha Schools still needs approval from the state probate court and the IRS for its portion of the settlement before it can be finalized. Since last year, HECO has raised $500 million needed for the first installment of its share.
About one-third of the settlement is expected to go to the victims' lawyers.
The state's wildfire settlement amount is in addition to a state contribution of $65 million to the One ʻOhana Fund for wildfire assistance. That fund was set up by the Green administration to help aid the recovery of families who lost loved ones as well as people who suffered severe injuries in the disaster.
HECO contributed $75 million to the One ʻOhana Fund, $17.5 million came from Kamehameha Schools, Maui County's share was $10 million and Charter/Spectrum, Hawaiian Telcom and West Maui Land Co. $2.5 million each.
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Civil Beat reporters Stewart Yerton and Blaze Lovell contributed to this report.
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This story was originally published by Honolulu Civil Beat and distributed through a partnership with The Associated Press.
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