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. 1323 entitled:

begs leave to report as follows:

The purpose of this measure is to grant the Insurance Commissioner the authority to waive the filing of documents by foreign health maintenance organizations (HMOs) seeking a certificate of authority to transact business in this State.

The Department of Commerce and Consumer Affairs testified in support of this measure.

This measure authorizes an expedited certification process for foreign HMOs, a process currently available to health insurers organized under chapter 431, article 10A, Hawaii Revised Statutes. Your Committee finds that allowing HMOs to fast track the certification process will facilitate the entry of more HMOs into the Hawaii market, thereby increasing competition and the availability of affordable health insurance for Hawaii's consumers.

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. 1323 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.