CONFERENCE COMMITTEE REPORT NO.81

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 3190
                                  S.D. 1
                                  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. 3190, S.D. 1, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE," 

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 facilitate the development
of the State's captive insurance industry by authorizing the
licensing of branch captive insurance companies.  Branch captive
insurance companies are already allowed in Vermont and Hawaii has
received inquiries from insurance organizations and businesses
interested in establishing branches in Hawaii.

     Your Committee on Conference has amended this measure by
deleting language that would have limited the organizational
flexibility of captives.  The deleted provisions defined a
captive insurance company as a class 1, class 2, class 3,

 
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                            CONFERENCE COMMITTEE REPORT NO.81
                            Page 2



class 4, or class 5 company, and categorized a branch captive as
a class 5 company.

     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. 3190, S.D. 1, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 3190, S.D. 1, 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 TANIGUCHI
Chair                             Co-Chair



                                  _______________________________
                                  Sen. BRIAN KANNO
                                  Co-Chair




 
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