STAND. COM. REP. NO. 1373

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1127
                                     S.D. 1
                                     H.D. 2




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 S.B. No. 1127, S.D. 1, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to assess the health insurance
industry the costs incurred by the State in regulating the
industry.

     Testimony in support of the measure was submitted by the
Insurance Commissioner, State Farm Insurance Companies, AARP,
Kaiser Permanente, and the Hawaii Coalition for Health.  Comments
were submitted by Hawaii Medical Service Association.

     Your Committee finds that sufficient funds should be
assessed in an economically fair manner so that all positions
requested by the Insurance Commissioner can be filled and the
full implementation of the Patient Rights and Responsibilities
Act can be realized.

     Therefore, your Committee has amended the bill by:

     (1)  Raising the aggregate ceiling to $1,100,000; 

     (2)  Providing a flat assessment of $10,000 for the first
          70,000 covered members of each entity, with a pro-rata
          assessment when the covered membership exceeds that
          figure; and

 
                                 STAND. COM. REP. NO. 1373
                                 Page 2

 

     (3)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.

     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 S.B. No. 1127, S.D. 1, H.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance in the
form attached hereto as S.B. No. 1127, S.D. 1, H.D. 2.

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



                                   ______________________________
                                   RON MENOR, Chair