STAND. COM. REP. NO. 2536

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2561
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2561, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to make resources available for
the Insurance Commissioner to promote Hawaii as a domicile for
captive insurance companies.

     The bill accomplishes this by requiring the Insurance
Commissioner to transfer a total of ten per cent of moneys
credited to the captive insurance administrative fund in the
prior fiscal year to the insurance regulation fund.

     Your Committee finds that promotional activities are
necessary to strengthen Hawaii's role as a leader in the captive
insurance industry.  However, your Committee also finds that it
is desirable to grant the commissioner some flexibility in
determining the proper amount of funding for promotional purposes
in any given year.

     Accordingly, your Committee has amended this measure to
require a transfer of up to ten per cent of the moneys credited
to the captive insurance administrative fund in the prior fiscal
year.


 
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                                   STAND. COM. REP. NO. 2536
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2561, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2561,
S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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