STAND. COM. REP. NO.227
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 Commerce, Consumer Protection and Housing, 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 clarify the hiring authority of the Insurance Fraud Investigations Branch (Branch) of the Insurance Division, expand the authority of the Branch's investigator assistants and auditors, broaden the Branch's fraud program's purpose to include an educational component, and clarify the Branch's funding source.
The Department of Commerce and Consumer Affairs testified in support of this measure.
This measure:
(1) Authorizes the Branch to hire auditors, accountants, paralegals, and other professionals;
(2) Authorizes the Branch's investigator assistants and auditors to serve process and apply for and execute search warrants;
(3) Requires the Branch's statewide program to include the promotion of public and industry-wide insurance fraud education; and
(4) Clarifies that the Branch's funding source is the Compliance Resolution Fund, rather than the Motor Vehicle Insurance Administration Revolving Fund, the latter fund having been merged into the former pursuant to Act 163, Session Laws of Hawaii 1999, and Act 39, Session Laws of Hawaii 2002.
This measure will aid the Insurance Division's efforts in combating insurance fraud by enabling the Branch to hire technical experts and other professionals, allowing the utilization of staff resources in a more efficient manner, and increasing public and industry awareness about fraudulent insurance activities.
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. 1315 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
____________________________ RON MENOR, Chair |
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