STAND. COM. REP. NO. 53

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 346
                                     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 Economic Development and Business
Concerns, to which was referred H.B. No. 346 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII HURRICANE RELIEF
     FUND,"

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to provide an orderly three-year transition for the repeal of the
Hawaii Hurricane Relief Fund (HHRF), by:

     (1)  Requiring the Insurance Commissioner (Commissioner) to
          provide for the internal restructuring and scaling back
          of the HHRF on an incremental basis until it is
          repealed on July 1, 2002;

     (2)  Authorizing the Commissioner to contract with a private
          consultant to create a transition plan for the HHRF's
          repeal; and

     (3)  Specifying that the Commissioner submit an interim
          report containing the findings, recommendations, and
          any proposed legislation to the Legislature and the
          Governor prior to the 2000 Regular Session and a final
          report to the Legislature and the Governor prior to the
          2001 Regular Session.


 
 
 
 
                                 STAND. COM. REP. NO. 53
                                 Page 2

 
     The HHRF Executive Director submitted testimony in support
of the measure.  The Department of Commerce and Consumer Affairs
submitted testimony in support of the intent of the measure.
Opposing testimony was received from the Hawaii Insurers Council.
The Hawaii Association of Realtors submitted comments on the
measure.

     Upon further consideration, your Committee has amended this
bill by deleting its substance and inserting new material
requiring the Governor, rather than authorizing the HHRF Board,
to appoint the HHRF Executive Director.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 346, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 346, H.D. 1, and be referred to the Committee
on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair