Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1230 entitled:

begs leave to report as follows:

The purpose of this bill is to protect the interests of consumers and dental service providers by extending the sunset date of Act 132, Session Laws of Hawaii (SLH) 2001, to allow the Insurance Commissioner (Commissioner) to continue its liquidation proceedings against the Hawaii Dental Health Plan (HDHP).

Testimony in support of this bill was received from the Commissioner.

Your Committee finds that Act 132, SLH 2001, authorized the Commissioner to monitor the solvency of dental insurance plans and pursue claims against insolvent plans to recover assets on behalf of policyholders and dental service providers.

The Commissioner has successfully instituted action against HDHP, but is still awaiting information from the federal government regarding any other outstanding claims against HDHP. Your Committee finds that an extension of the Commissioner's authority is therefore necessary.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1230 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.