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 S.B. No. 2723, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this administration bill is to merge the Insurance Regulation Fund (IRF) into the Compliance Resolution Fund (CRF) of the Department of Commerce and Consumer Affairs (DCCA).

Testimony in support of this measure was received from DCCA's Deputy Director and Insurance Commissioner.

Your Committee finds that DCCA is self-supporting and currently obtains its funding through the CRF. The Insurance Division, which is within DCCA, is also self-supporting and is funded through the IRF.

This proposed merger of the IRF and CRF will provide greater efficiency in the administration of DCCA's funds without adversely affecting its regulatory functions. It will also result in only a single annual funding report, the Compliance Resolution Fund Report, rather than two separate reports, allowing substantive and fiscal information on insurance to be more comprehensive.

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 S.B. No. 2723, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.