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                                 STAND. COM. REP. NO. 1773

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1127
                                     S.D. 1
                                     H.D. 3




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1127, S.D. 1, H.D. 2, 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.  Assessments for each provider will be deposited into a
newly created Health Insurance Revolving Fund (Fund) to be used
for:

     (1)  The hiring of professional, technical, and support
          staff; and

     (2)  Compliance, education, examination, investigation, and
          rate and policy analysis.

     The Department of Commerce and Consumer Affairs, the
American Association of Retired Persons, the University Health
Alliance, and Kapiolani HealthHawaii testified in support of this
bill.  Kaiser Permanente testified in support of the intent of
this bill.  The Hawaii Medical Service Association and the Health
Issues Committee of the Chamber of Commerce commented on this
bill.


 
 
 
                                 STAND. COM. REP. NO. 1773
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Blanking out specific dollar references for the
          aggregate annual assessment maximum and the Fund's
          appropriation amounts for discussion purposes; and

     (2)  Making technical, nonsubstantive changes for style and
          clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance 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. 2, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1127,
S.D. 1, H.D. 3.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair