STAND. COM. REP. NO. 949

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1624
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1624, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to authorize the Insurance
Commissioner to set license, renewal, and other fees for captive
insurance companies. 

     The Insurance Commissioner presented testimony in support of
the measure.  Fiftieth State Risk Management Services, Inc.,
though not present at the hearing, submitted written testimony in
support of the measure. 

     Your Committee finds that the regulation of captive
insurance companies in this State requires a greater expenditure
of resources by the Insurance Division than does the regulation
of traditional insurance companies.  This measure allows the
Insurance Commissioner to set fees for captive insurance
companies commensurate with the level of resources required to
provide for the licensing and regulatory oversight of captives. 

     Your Committee has amended the measure by:

     (1)  Extending the deadline for the adoption of rules by the
          Insurance Commissioner to January 1, 2001;


 
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                                   STAND. COM. REP. NO. 949
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     (2)  Extending the effective date for the provision in the
          measure establishing application, license, and renewal
          fees for captive insurance companies to January 1,
          2001; and

     (3)  Making a technical, nonsubstantive amendment.
  
     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1624, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1624, H.D. 2, S.D. 1, and be referred to the
Committee on Ways and Means.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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