STAND. COM. REP. NO. 420

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1129
                                        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 S.B. No. 1129 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to require insurance agents
to complete an approved continuing education course in order to
renew a license.

     This measure also:

     (1)  Creates an insurance licensing administration special
          fund to pay for expenses of the Insurance Commissioner
          relating to licensing and continuing education of
          insurance agents; and

     (2)  Increases the licensing fees for insurance agents and
          insurance companies.

     Testimony in support of this measure was presented by the
Insurance Commissioner, State Farm Insurance Companies, Hawaii
State Association of Life Underwriters, and Hawaii Independent
Insurance Agents Association.

     Your Committee finds that the lack of a continuing education
program has put local agents and solicitors at a disadvantage
because their licenses are not entitled to reciprocity in other
states, and they cannot sell insurance products in other states.

 
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     This measure would establish new licensing guidelines for
all insurance agents that include continuing education credit
requirements.  However, your Committee notes a concern regarding
the provision requiring an automatic appropriation of a portion
of the moneys credited to the fund each year for continuing
education expenses of the Insurance Commissioner.  No other state
fund is allowed such automatic appropriation, as the
appropriation process is the legislature's power of oversight.

     Accordingly, your Committee has amended this measure by
deleting the automatic appropriation provision and by making
technical, nonsubstantive amendments for purposes of clarity and
style.

     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 S.B. No. 1129, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 1129, 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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