Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 3040, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the definition of "nonpublic financial information" under the captive insurance company law.

This measure clarifies the provisions relating to confidential treatment of information relating to a captive insurance company by making all nonpublic information subject to confidential treatment.

Your Committee finds that captive insurance companies incur more confidential proprietary information (nonpublic financial information) because their business operations are more akin to a private company than an insurance company. Current law requires captive insurance companies to disclose such nonpublic financial information to the Insurance Commissioner.

Your Committee has been made aware that the Office of Information Practices objects to the language in Senate Draft 1 of this measure. For this reason, and to further discussions on this measure to ensure that sensitive privacy rights are adequately protected, your Committee has amended this measure by changing the effective date to July 1, 2050. Your Committee has also amended this measure to make technical changes to conform the language to existing law.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3040, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3040, S.D. 2.