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. 3064 entitled:

begs leave to report as follows:

The purpose of this measure is to establish procedures for the creation of annuities used as settlement proceeds in structured settlements.

Testimony in support of this measure was submitted by the American Council of Life Insurers, the National Association of Settlement Purchasers, Consumer Lawyers of Hawaii, and an individual who is a structured settlement broker in Hawaii. No testimony in opposition to this measure was submitted.

Currently, forty-three states have structured settlement transfer statutes similar to this measure. The National Conference of Insurance Legislators has also adopted the Model State Structured Settlement Protection Act.

Your Committee finds that this measure will allow Hawaii citizens to have flexibility and control over their property rights and future, while providing a statutory scheme to ensure that all secondary market transactions are completed in a manner that ensures that such transactions are reasonable and appropriate and that the individuals who go forward with such transactions are well-informed and treated fairly.

Your Committee has amended this measure by making technical, nonsubstantive amendments for clarity and style.

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. 3064, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3064, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.