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.C.R. No. 156, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to oppose federal legislation that threatens the power of state legislatures, governors, insurance commissioners, and attorneys general to oversee, regulate, and investigate the business of insurance and to protect consumers.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs, the Hawaii Medical Service Association, and the First Insurance Company of Hawaii, Ltd. No testimony in opposition was received by your Committee.

Your Committee finds that current federal initiatives would destroy the state systems of insurance regulation and create unwieldy and inaccessible federal bureaucracies. Your Committee further finds that these proposals create mandatory federal insurance standards that would preempt state laws, to the detriment of Hawaii 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 concurs with the intent and purpose of H.C.R. No. 156, H.D. 1, and recommends its adoption.