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. 2743 entitled:

begs leave to report as follows:

The purpose of this measure is to delete from the list of funds exempt from central service assessment the Compliance Resolution Fund (CRF) and the Insurance Regulation Fund (IRF).

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

Your Committee finds that this measure requires the CRF and the IRF to pay the five per cent central service assessment which the Department feels is fair in exchange for services the Department receives from State agencies. Those services are a cost for the Department to provide services to the public.

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