STAND. COM. REP. NO. 798-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1935
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1935, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of
Commerce and Consumer Affairs (DCCA) to regulate the use of
independent bill reviewer administrators by insurers for the
evaluation of service providers' billing submissions.

     DCCA, the Hawaii State Chiropractic Association, Consumer
Lawyers of Hawaii, the Hawaii Medical Association, and the Hawaii
Chapter of the American Physical Therapy Association testified in
support of this measure.  The Hawaii Insurers Council opposed
this measure.  State Farm Insurance Companies and ADP Integrated
Medical Solutions submitted comments.

     Your Committee has amended this measure by:

     (1)  Clarifying that the funds will be appropriated out of
          the Insurance Regulation Fund rather than the Motor
          Vehicle Insurance Revolving Fund; and

     (2)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your

 
 
                                 STAND. COM. REP. NO. 798-00
                                 Page 2

 
Committee is in accord with the intent and purpose of H.B. No.
1935, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1935, H.D.
2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair