STAND

STAND. COM. REP. NO.802

Honolulu, Hawaii

, 2003

RE: S.B. No. 1315

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1315 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE FRAUD,"

begs leave to report as follows:

The purpose of this measure is to increase the ability of state regulators to combat insurance fraud.

This bill promotes this objective by:

(1) Converting the motor vehicle insurance fraud investigations unit of the Insurance Division of the Department of Commerce and Consumer Affairs into a branch of the Division; and

(2) Authorizing the branch to both retain its staff by contract and expand its staff to include auditors, accountants, paralegals, and other professionals.

Additionally, this measure expands the purpose of the branch to include educational programs, and authorizes investigator assistants and auditors to serve process and execute search warrants.

Your Committee finds that these changes are necessary to strengthen the Insurance Division's ability to prevent and combat motor vehicle insurance fraud.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1315 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

		____________________________ BRIAN T. TANIGUCHI, Chair