Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 649, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to enhance the criminal penalties applied to individuals who commit insurance fraud by including felony insurance fraud as one of the felony violations that can increase the sentences of repeat felony offenders.

Testimony in support of this measure was submitted by the Insurance Commissioner, Department of Commerce and Consumer Affairs; the Department of the Attorney General; the Department of the Prosecuting Attorney, County of Maui; and the Honolulu Police Department. No testimony in opposition was received by your Committee.

Insurance fraud is often perceived as a non-violent and victimless crime. However, the effects of insurance fraud impacts everyone through the higher insurance premiums for citizens and public and private employers. Your Committee finds that this measure will apply appropriate penalties to repeat offenders who commit the crime of insurance fraud.

Your Committee has adopted the technical, non-substantive amendments proposed by the Department of the Attorney General for purposes of clarity.

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 H.B. No. 649, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 649, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.