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 S.B. No. 2280 entitled:

begs leave to report as follows:

The purpose of this measure is to make permanent Act 118, Session Laws of Hawaii 2004, which requires health insurers to treat a bona fide trade association and its members as a single group, at the option of the trade association, for the purpose of issuing a health insurance policy.

Testimony in support of the measure was submitted by the State Insurance Commissioner, the Retail Merchants of Hawaii, and the Hawaii Association of Realtors.

Your Committee finds that this measure will repeal the current sunset date of December 31, 2006, as provided by Act 118, thereby making permanent the option of various businesses and individuals to pool together within a trade association for health insurance rating purposes. Act 118 appears to be having a positive effect, so that it is advisable to extend it permanently.

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. 2280 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.