STAND. COM. REP. NO. 389

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1624
                                     H.D. 1




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1624 entitled: 

     "A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to give the State Insurance
Commissioner the authority to set license and renewal fees of
captive insurance companies through administrative rules, rather
than by statute.

     Testimony in support of the bill was received from the
Department of Commerce and Consumer Affairs (DCCA), Hawaii
Captive Insurance Council, J&H Marsh & McLennan, and 50th State
Risk Management Services, Inc.  DCCA testified that risk
retention captives do require much more work prior to and after
approval, so this bill would allow setting fees in proportion to
the amount of work involved.  
  
     Your Committee recognizes that the captive insurance
industry has been growing and providing an economic benefit for
this State.  This bill will assure proper administration of fees
and support prudent regulation of captive insurance companies,
which factors are integral to maintaining a reputable and
attractive captive domicile.  

     Your Committee has made some technical, nonsubstantive
amendments for purposes of clarity and consistency.


 
 
                                 STAND. COM. REP. NO. 389
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1624, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1624, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair