Hawaiʻi senators are raising concerns about the lack of conversation between legislators regarding the state’s share of the $4.2 billion global Maui wildfire settlement.
If the settlement goes through, the state will need to pay $800 million over two years. The Senate Ways and Means Committee previously amended and passed the measure that would allow the state to expend the funds.
The amendments included requiring the other parties in the settlement to submit a plan to the attorney general proving they can pay their share. That includes the Hawaiian Electric Company, which is contributing about $2 billion. It also required all parties to submit their payment 30 days before the due date.
But the state Department of the Attorney General told senators that they had to take back the amendments because they could significantly impact the overall settlement.
"There seems to be a level of lack of transparency in this entire process," Sen. Glenn Wakai said at a committee meeting. "Even as we stand now, and the state puts forth its $800 million, it's not clear how Hawaiian Electric is going to pay off its share of the $2 billion judgment. From what I understand, they have the first billion dollars covered, but none of us in this room have any idea how the second billion dollars will be covered, and, if they don't cover it, how the whole deal falls apart."
The measure will be heard by the full Senate this week.
The Hawaiʻi Supreme Court ruled in February that insurance companies can’t bring their own legal actions against those blamed for Maui’s catastrophic 2023 wildfire, allowing the $4 billion settlement that was on the verge of collapse to proceed.
Other steps remain in finalizing the deal between thousands of people who lodged lawsuits and various defendants. A lawyer representing victims said it could mean that survivors receive their first settlement payments by the end of the year.
