STAND. COM. REP. NO. 2624

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2815
                                        S.D. 1




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

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2815 entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to require any person convicted
of any felony offense to obtain the Insurance Commissioner's
written consent before engaging in the business of insurance in
this State.  The bill also subjects a person violating this
requirement to fines and penalties.

     Your Committee finds that present law does not authorize the
Insurance Commissioner to prevent a person who is convicted of a
felony from engaging in the business of insurance in this State.
On the other hand, federal law (18 U.S.C. 1033) requires an
individual convicted of a felony to seek the consent of the
Insurance Commissioner to engage in the business of insurance. 

     Accordingly, your Committee finds that this bill will
conform the Insurance Code to the federal law.

     Your Committee has amended the bill by making a technical
nonsubstantive change that specifies the specific penalty section
instead of "this chapter" at line 18 on page 1.

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

 
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                                   STAND. COM. REP. NO. 2624
                                   Page 2


Committee is in accord with the intent and purpose of S.B. No.
2815, and recommends that it pass Third Reading in the form
attached hereto as S.B. No. 2815, S.D. 1.

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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