STAND. COM. REP. NO. 406

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 970
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 970 entitled: 

     "A BILL FOR AN ACT RELATING TO BAIL BONDS,"

begs leave to report as follows:

     The purpose of this measure is to clarify that bail bond
rates are not subject to insurance rate filing requirements.

     The Professional Bail Agents Association presented testimony
in support of the measure.  The Insurance Commissioner
(Commissioner), though not present at the hearing, submitted
written testimony expressing no opposition to the measure
provided that the premium rate allowed under the bail law does
not exceed fifteen per cent.

     Your Committee finds that presently, premium rates for bail
bonds are established and regulated in two different sections of
the law.  Chapter 431, Hawaii Revised Statutes (HRS), governs the
rates for a surety insurance bond, while chapter 804, HRS,
governs the rates for all other types of bail bonds.  These
differing rate requirements have created confusion among bail
bondspersons, attorneys, and the public.  This measure provides
that bail bonds issued pursuant to section 804-62, HRS, are not
subject to the rate filing requirements of section 431:14-104,
HRS. 


 
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                                   STAND. COM. REP. NO. 406
                                   Page 2


     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. 970 and recommends that it pass Second
Reading and be referred to the Committee on Judiciary.

                                   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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