Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 574, S.D. 1, H.D. 2, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to establish and fund three insurance examiner positions within the Captive Insurance Administration Branch of the Insurance Division, and to require the Captive Insurance Administrator to report directly to the Insurance Commissioner (Commissioner).

Your Committee on Conference has amended this measure by:

Your Committee on Conference finds that this measure, as amended, will enhance the development of Hawaii's captive industry, and thereby expand the State's economic base. Currently, the Captive Insurance Administrator reports to an administrator who has the authority to make decisions on daily operational matters, but not decisions regarding broader policy issues. Requiring that the head of the Captive Insurance Branch report directly to the Commissioner will facilitate critical decisionmaking at the policy level and enable Hawaii to compete more effectively and successfully as a captive domicile.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 574, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 574, S.D. 1, H.D. 2, C.D. 1.