SECTION 1. The legislature finds that firearm-related injuries impose substantial direct and indirect costs on the State, including costs for emergency medical response, hospital and trauma care, long-term rehabilitation, mental health treatment, lost productivity, and survivor support. Due to the State's geographic isolation, limited trauma-care capacity, and reliance on public health systems, these costs are disproportionately borne by taxpayers, public hospitals, and families.

The legislature further finds that existing compensation programs, 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 that allocates a portion of the public costs of firearm injuries to firearm manufacturers as a condition of participation in the State's market, without imposing civil liability, criminal penalties, or fault for third-party misuse of firearms.

This Act is intended to operate pursuant to the State's police power to protect public health, safety, and welfare, and shall be construed as economic regulation, not 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 discharge of a firearm, including accidental, self‑inflicted, criminal, or otherwise unintended injury.

"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) 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 firearm injury-related expenses, including medical care, mental health treatment, rehabilitation, prescription medications, lost wages, funeral and burial expenses, and other costs determined by rule.

(c) 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) 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.

(c) A license issued under this section constitutes economic regulation of market participation and shall not be construed as a penalty or sanction.

§134-D Category-based risk; manufacturer contributions. (a) The department shall establish firearm risk categories by rule, based on objective product characteristics and aggregated public-health cost data.

(b) Each risk category shall be assigned a contribution rate reflecting its proportional share of statewide firearm injury costs.

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

(d) Contributions shall be calculated prospectively and may be capped based on a reasonable percentage of in-state sales revenue, as determined by rule.

(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 Compensation programs; coordination. (a) Benefits paid from the fund shall be coordinated with other public and private benefits to avoid duplication of payments.

(b) Nothing in this part shall limit eligibility for compensation under chapter 351 or any other applicable law.

§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) The department shall deny, suspend, or revoke a firearm injury recovery license for noncompliance after notice and opportunity for hearing.

(b) Remedies under this part shall be limited to licensing actions and administrative penalties authorized by rule.

§134-I Administrative procedures. (a) The department may adopt rules pursuant to chapter 91 for the purposes of this part, including rules governing risk category classification, contribution calculations, audits, verification procedures, and administrative appeals.

(b) A firearm manufacturer may contest risk category placement, mathematical calculation of contributions, or compliance determinations through administrative review.

(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. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

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