STAND. COM. REP. NO. 2923

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2476
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred H.B. No. 2476, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this measure is to make several amendments to
the motor vehicle insurance laws.

     Testimony in support of the measure was received from the
Department of Commerce and Consumer Affairs, Consumer Lawyers of
Hawaii, and the Hawaii State Chiropractic Association.  Testimony
in opposition to this measure was received from the Hawaii
Insurers Council, Hawaii Medical Association, State Farm
Insurance Companies, Argonaut Insurance Company, Maui Health
Center, Honolulu Sports Medical Clinic, Inc., and ten
individuals.  

     This measure specifies that the "Limitation on charges",
section 431:10C-308.5, Hawaii Revised Statutes (HRS), governs
disputes between the provider and the insurer, requires that the
provider and the insurer negotiate a dispute in good faith before
submitting the dispute to the commissioner, arbitration, or the
court, uniformly references the "workers' compensation
supplemental medical fee schedule", and sets a cap on the charges
for independent medical examinations.


 
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                                   STAND. COM. REP. NO. 2923
                                   Page 2


     Your Committee amended this measure by removing the proposed
cap on the charges for independent medical examinations.  Your
Committee also made technical, nonsubstantive changes to reflect
existing statutory language.

     Your Committee respectfully requests that the Committee on
Ways and Means examine the State Insurance Commissioner's
recommendation on the percentage cap.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 2476, H.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 2476, H.D. 1, S.D. 1, and be referred to the Committee on
Commerce and Consumer Protection.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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