STAND. COM. REP. NO. 971

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1083
                                        H.D. 2
                                        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 H.B. No. 1083, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF COMMERCE
     AND CONSUMER AFFAIRS,"

begs leave to report as follows:

     The purpose of this measure is to allow the Department of
Commerce and Consumer Affairs (DCCA) to become fiscally self-
sufficient by combining most of DCCA's special and revolving
funds into the DCCA Compliance Resolution Fund, to be managed by
DCCA and not subject to central service and departmental
administrative expense reimbursement deductions or other
reversions to the general fund.

     The Department of Commerce and Consumer Affairs presented
testimony in support of this measure.

     Your Committee finds that over the past four years, general
fund support for DCCA's various programs has declined
significantly, and as a result, DCCA has been moving steadily
toward self-sufficiency.  This measure will allow DCCA greater
flexibility in the management of its funds and further the
department's goal of being supported wholly by the revenue it
collects.


 
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                                   STAND. COM. REP. NO. 971
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     Your Committee has amended this measure by deleting the
contents in their entirety and inserting the contents of S.B.
No. 1145, S.D. 2.  As amended, the measure:

     (1)  Adds insurance special funds as excluded funds in
          Section 26-9(o), Hawaii Revised Statutes (HRS);

     (2)  Amends Section 92-24, HRS, to delete the special fund
          reference and add the compliance resolution fund
          established pursuant to section 26-9(o);

     (3)  Amends Section 482-2(b), HRS, to delete the special
          fund reference and add the compliance resolution fund
          established under section 26-9;

     (4)  Amends Act 216, Session Laws of Hawaii 1997, to retain
          the amendments made to section 36-27 and 36-30 under
          this measure when Act 216 is repealed; and

     (5)  Makes technical amendments.

     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 H.B. No. 1083, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1083, H.D. 2, 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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