Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2722 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the Division's authority to employ or retain the services of professional, technical, and other support personnel.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs Insurance Division.

Your Committee finds that the insurance fraud branch has several insurance fraud cases that require consultation with professional or technical experts. While nothing prohibits the hiring and retention of either a professional or technical expert within the current statute, this measure strengthens the Department's ability to maintain attorneys, medical providers, and others on retainer to utilize their expertise as needed or may be necessary for the successful prosecution and prevention of insurance fraud.

Your Committee made a nonsubstantive, technical amendment to delete the reference to chapter 77, Hawaii Revised Statutes, since that chapter will be repealed on July 1, 2002, as provided in Act 253, Session Laws of Hawaii 2000.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2722, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2722, S.D. 1, and be referred to the Committee on Ways and Means.