STAND. COM. REP. NO. 102

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1065
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No.
1065 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to establish a health insurance
revolving fund for the examination and regulation of mutual
benefit societies and health maintenance organizations within the
State. 

     The Insurance Division of the Department of Commerce and
Consumer Affairs, Hawaii Medical Service Association, and Kaiser
Permanente testified in support of the measure.  State Farm
Insurance Companies, while posing no objection to the intended
purpose the fund, expressed fundamental opposition to the
creation of a special fund to address this need. 

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1065 and recommends that it pass Second Reading and be referred
to the Committee on Consumer Protection and Commerce.


 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 102
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health,



                                   ______________________________
                                   ALEXANDER C. SANTIAGO, Chair