STAND. COM. REP. NO.1399-02
Honolulu, Hawaii
, 2002
RE: S.B. No. 2582
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 2582 entitled:
"A BILL FOR AN ACT RELATING TO CAPTIVE INSURANCE,"
begs leave to report as follows:
The purpose of this bill is to make Hawaii's premium tax structure for single-owner and multi-owner captive insurance licensees more equitable and attractive, while maintaining an adequate funding base by:
(1) Changing the existing flat premium tax of .25 percent for single-owner captive insurance licensees and 1.00 percent for multi-owner captive insurance licensees to a three-tier premium tax. This bill makes both single-owner and multi-owner captive insurance licensee premiums subject to a tax of .25 per cent on the first $25,000,000, .15 per cent on the next $25,000,000, and .05 per cent on premiums over $50,000,000; and
(2) Increasing the minimum funding ceiling for the captive insurance program from $250,000 to $1,500,000.
The Department of Commerce and Consumer Affairs, Bank of Hawaii, Becker + Carlson Risk Management, Inc., and a concerned individual testified in support of the bill.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2582 and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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