Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 1077, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to codify existing practices of the Insurance Commissioner with regard to processing of applications for certification of continuing education courses and course providers.

Testimony in support of this bill was submitted by the Hawaii Independent Insurance Agents Association, National Association of Insurance and Financial Advisors Hawaii, and the Professional Insurance Agents of Hawaii. The Insurance Commissioner and Continuing Education Advisory Committee testified in support and suggested two amendments.

Your Committee finds that quality continuing education programs for Hawaii's insurance licensees are necessary if they are to compete with professionals from other states in the current insurance business world, which is evolving into an interstate business. Quality programs will also allow insurance professionals to meet educational requirements of other states and conduct business in other states more efficiently.

Your Committee concurs with the Insurance Commissioner's assertion that it is important to provide additional time to process continuing education course provider certificate renewal notices filed later in the year. Your Committee believes this will conserve resources by preventing the need for additional positions and funding.

Thus, your Committee has amended the language in this bill that states that provider certificates will expire on July 1 of the calendar year following the year the application for the certificate was received, by adding language that:

Technical, nonsubstantive amendments have also been made for purposes of clarity, consistency, and style.

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. 1077, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1077, S.D. 1, H.D. 1, and be referred to the Committee on Finance.