STAND. COM. REP. NO. 593

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1261
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1261 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to allow the Insurance
Commissioner to adopt rules to establish application and annual
license fees on captive insurance companies instead of setting
the fees by statute.

     Your Committee agrees with the intent of this bill, and
finds that prudent regulation of captive insurance companies is
an integral part of a reputable and attractive captive domicile.
To provide for proper regulation of captives, certain fees and
costs are warranted to compensate the regulators for their work.
Your Committee finds that this bill will assist in offsetting
some of the additional expenses associated with the regulation of
captive insurance companies.

     The bill also requires the initial set of rules to be
adopted by January 1, 2000.

     Your Committee has amended the bill to make technical,
nonsubstantive changes.


 
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                                   STAND. COM. REP. NO. 593
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1261, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1261, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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