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. 2743 entitled:

begs leave to report as follows:

The purpose of this bill is to remove exemptions from central services expense contributions for the Insurance Regulation Fund (IRF) and the Compliance Resolution Fund (CRF).

The Department of Commerce and Consumer Affairs (DCCA) testified in support of this administration measure.

Your Committee finds that all special funds, except for those granted exemptions, are assessed prorated central service expenses of government related to those funds. DCCA's IRF and CRF are among the special funds exempt from payments for these services.

Your Committee further finds that this bill will allow approximately $1,500,000 per year to be transferred to the general fund from the IRF and CRF, which will allow the State to better serve the public.

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. 2743 and recommends that it pass Second Reading and be referred to the Committee on Finance.