CONFERENCE COMMITTEE REPORT NO.80

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 3043
                                  S.D. 2
                                  H.D. 1
                                  C.D. 1




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

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 3043, S.D. 2, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO THE STATE RISK MANAGEMENT AND
     INSURANCE ADMINISTRATION," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to authorize the
establishment of a State-owned captive insurance facility to
insure the general liabilities of the State.  This measure will
enable the State to take advantage of discounted premium rates in
the reinsurance market and to retain control over insurance
reserves.

     Your Committee on Conference has amended this measure to:

     (1)  Retain the comptroller's discretion to request the
          governor to transfer state programs savings to fund the

 
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          obligations of the State Risk Management Revolving Fund
          and the discretion to dissolve the fund;

     (2)  Require the insurance division to study the feasibility
          and cost effectiveness of providing insurance coverage
          for real property damage sustained as a result of fire,
          flood, or hurricane, and for other types of risks; and

     (3)  Appropriate $100,000 from the Captive Insurance
          Administrative Fund for the purposes of the Act.
     
     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 3043, S.D. 2, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 3043, S.D. 2, H.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE




_____________________________     _______________________________
Rep. RON MENOR                    Sen. BRIAN T. TANIGUCHI
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. BRIAN Y. YAMANE              Sen. BRIAN KANNO
Co-Chair                          Co-Chair

 
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