STAND. COM. REP. NO. 2258

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2731
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2731 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to amend Section 431:7-203,
Hawaii Revised Statutes, so that excess taxes, fees, or charges
will be payable out of general funds instead of the insurance
regulation funds of this State. 

     Currently, premium taxes are deposited in the State's
general fund and not in the insurance regulation fund.  This
amendment ensures, then, that the appropriate fund is properly
debited when premium tax refunds are made under this section.

     This bill, however, unintentionally mandates that a fee or
other charge in excess should also be paid out of the State's
general fund.  These refunds should more appropriately be paid
out of the insurance regulation fund, and your Committee has
accordingly amended the bill to make this correction. 

     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 S.B. No. 2731, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
2731, S.D. 1, and be referred to the Committee on Ways and Means.


 
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                                   STAND. COM. REP. NO. 2258
                                   Page 2


                                   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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