SECTION 1. The legislature finds that existing compensation programs for those injured by firearms, including the crime victim compensation commission, are limited in scope and operate primarily as payers of last resort, resulting in delayed or incomplete coverage for many firearm-related injuries.

The purpose of this Act is to establish a prospective, no‑fault, public health financing mechanism for those injured by firearms without imposing civil liability, criminal penalties, or fault.

This Act is intended to protect public health, safety, and welfare, not to impose punishment.

SECTION 2. Chapter 134, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . HAWAII Firearm injury restitution fund

§134-A Definitions. As used in this part:

"Department" means the department of health.

"Firearm injury" means any bodily injury or death caused by the accidental or otherwise unintended discharge of a firearm, or by the unjustified, intentional discharge of a firearm by one person against another.

"Firearm manufacturer" means any person or entity engaged in the commercial manufacture of a finished firearm intended for sale or distribution.

"Fund" means the Hawaii firearm injury restitution fund established under section 134-B.

"Market participation" means the sale, distribution, or placement of firearms into the stream of commerce in the State.

"Risk category" means a firearm product classification established pursuant to section 134-D based on objective product characteristics associated with aggregate firearm injury costs.

§134-B Hawaii firearm injury restitution fund; established. (a) Beginning July 1, 2027, there is established the Hawaii firearm injury restitution fund to be administered by the department.

(b) The fund shall operate as a first payer for eligible medical care, mental health treatment, rehabilitation, prescription medications, lost wages, and funeral and burial expenses resulting from a firearm injury.

(c) An individual who suffers a firearm injury, or the personal representative or estate of the individual, may make a claim for payment from the fund.

(d) Payment of benefits from the fund shall not be conditioned on fault, criminal liability, or the outcome of any civil or criminal proceeding.

§134-C Firearm injury cost recovery license. (a) Beginning January 1, 2027, no firearm manufacturer shall sell or distribute firearms in the State unless the manufacturer holds a valid firearm injury cost recovery license issued by the department.

(b) Issuance and renewal of a license under this section shall be conditioned on participation in the fund and payment of contributions required under section 134-D.

§134-D Category-based risk; manufacturer contributions. (a) The department shall establish and periodically update firearm risk categories, based on objective product characteristics.

(b) The department shall assign each risk category a contribution rate reflecting its proportional share of statewide firearm injury costs, based on aggregated public health cost data.

(c) All firearm manufacturers participation in the same risk category shall be subject to the same contribution formula, applied uniformly.

(d) Contributions may be capped based on a reasonable percentage of in-state sales revenue.

(e) The department shall conduct periodic actuarial reviews and adjust contribution rates as necessary to ensure fiscal sufficiency, predictability, and fairness.

§134-E Data collection and privacy. (a) State and county law enforcement agencies shall provide the department with aggregated firearm injury data necessary for actuarial and public-health analysis.

(b) Public disclosure shall be limited to anonymized and aggregated data and shall not identify individual firearm manufacturers in connection with specific injury incidents.

§134-F Crime victim compensation. Nothing in this part shall limit eligibility for compensation under chapter 351.

§134-G Federal law; compliance. (a) Nothing in this part shall be construed to:

(1) Impose civil liability on a firearm manufacturer;

(2) Regulate firearm possession or ownership; or

(3) Assign fault or penalize criminal misuse of a firearm by a third party.

(b) This part shall be construed to be consistent with title 15 United States Code sections 7901 through 7903.

§134-H Enforcement. (a) Beginning July 1, 2027, the department shall deny, suspend, or revoke a firearm injury recovery license for noncompliance after notice and opportunity for a hearing.

(b) Remedies under this part shall be limited to licensing actions.

§134-I Administrative procedures. (a) The department shall adopt rules pursuant to chapter 91 for the purposes of this part, including rules governing the process by which claims may be made for payments from the fund and by which claims may be coordinated with other public and private sources that may cover firearm-related injuries, risk category classifications, contribution calculations, audits, verification procedures, and administrative appeals.

(b) The department shall adopt an administrative review process by which a firearm manufacturer may contest risk category classifications, mathematical calculation of contributions, or compliance determinations.

(c) Proceedings under this part shall be administrative in nature and shall not constitute adjudications of civil or criminal liability."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	2720
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII