STAND. COM. REP. NO. 1802

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1261
                                     S.D. 1
                                     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 Finance, to which was referred S.B. No.
1261, S.D. 1, H.D. 1, 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 Department of
Commerce and Consumer Affairs (DCCA) flexibility by giving the
Insurance Commissioner the authority to set the captive insurance
fees by rule rather than requiring statutory change.

     DCCA and the Hawaii Captive Insurance Council testified in
support of this measure.

     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.
1261, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair