STAND. COM. REP. NO.  1857

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1008

      S.D. 1

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1008, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ANNUITIES,"

begs leave to report as follows:

     The purpose of this bill is to enhance the regulation of annuity sales by establishing standards and procedures for insurers and insurance producers that make recommendations to consumers regarding the purchase or exchange of annuities.

     The American Council of Life Insurers, National Association of Insurance and Financial Advisors, and Insurance Division of the Department of Commerce and Consumer Affairs (DCCA) supported this measure with amendments.  The Business Registration Division of DCCA submitted comments.

     Your Committee has amended this bill by:

(1)  Specifying that nothing in this Act will supersede Chapter 485, Hawaii Revised Statutes, the Uniform Securities Act;

(2)  Providing that this Act shall not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date;

(3)  Inserting a sunset date of June 30, 2010; and

(4)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1008, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1008, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair