Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2485 entitled:

begs leave to report as follows:

The purpose of his bill is to remove the Compliance Resolution Fund (CRF), and the Insurance Regulation Fund (IRF), from the list of special funds that are exempt from central service assessments.

Testimony in support of this administration bill was received from the Insurance Division of the Department of Commerce and Consumer Affairs (DCCA).

Your Committee finds that the director of finance is authorized to make assessments of special funds, except those granted an exempt status, for the purpose of defraying the central service expenses of government in relation to special funds. The CRF and IRF are DCCA special funds that are exempt from assessments.

The approach of removing the CRF and the IRF from exempt status will allow these funds to pay their fair share of central service governmental expenses.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2485 and recommends that it pass Second Reading and be referred to the Committee on Finance.