STAND. COM. REP. NO. 595

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1071
                                     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 Consumer Protection and Commerce, to which
was referred H.B. No. 1071, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE INSURANCE CODE,"

begs leave to report as follows:

     The purpose of this bill is to authorize the Insurance
Commissioner to hire staff attorneys exempt from the civil
service laws.

     Your Committee received testimony in support of the measure
from the Insurance Commissioner.  State Farm Insurance Companies
stated that it did not support the measure.

     Your Committee finds that the Insurance Division requires
flexibility in hiring and retaining attorneys outside of the
civil service system.

     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 H.B. No. 1071, H.D. 1, and recommends that it be
referred to the Committee on Finance.


 
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                                 STAND. COM. REP. NO. 595
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair

 
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