Report Title:

Tax credit; insurance premium taxes

Description:

Clarifies that the attractions and educational facilities tax credit and high technology business investment tax credit may be claimed against insurance premium taxes.

HOUSE OF REPRESENTATIVES	H.B. NO.	1329
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 431, Hawaii Revised Statutes, is amended by adding to article 7 a new section to be appropriately designated and to read as follows:

     "§431:7-  Application of attractions and educational facilities tax credit. The attractions and educational facilities tax credit provided under section 235-110.46 may be claimed against the tax imposed under section 431:7-202."

     SECTION 2.  Section 431:7-209, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§431:7-209[]]  High technology business investment tax credit.  The high technology business investment tax credit provided under section 235-110.9 [shall be operative for this chapter on July 1, 1999.] may be claimed against the tax imposed under section 431:7-202."

     SECTION 3.  Section 431:9A-108, Hawaii Revised Statutes, is amended as follows:

     (1)  By amending subsection (a) to read as follows:

     "(a)  Except as provided in section 431:9A-112, a nonresident [applicant] person shall receive a nonresident producer license if:

     (1)  The [applicant] person is currently licensed as a resident and is in good standing in the [applicant's] person's home state;

     (2)  The [applicant] person has submitted the proper request for licensure and has paid the fees required by section 431:7-101;

     (3)  The [applicant] person has submitted or transmitted to the commissioner the application for licensure that the [applicant] person submitted to the [applicant's] person's home state[,] or, in lieu of the same, a completed uniform application; and

     (4)  The [applicant's] person's home state awards nonresident producer license to residents of this State on the same basis."

     (2)  By amending subsections (d) and (e) to read as follows:

     "(d)  Notwithstanding any other provision of this article, [an applicant] a person licensed as a surplus lines producer in the [applicant's] person's home state shall receive a surplus lines broker license if:

     (1)  The [applicant] person complies with subsection (a); and

     (2)  The [applicant's] person's home state issues nonresident surplus lines broker licenses to residents of this State on the same basis.

     (e)  Notwithstanding any other provision of this article, [an applicant] a person licensed as a limited line credit insurance producer or other type of limited lines producer in the person's home state shall receive a nonresident limited lines producer license, pursuant to subsection (a), granting the same scope of authority as granted under the license issued by the [producer's] person's home state.  Limited lines insurance authority is any authority granted by the home state[,] that restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to section 431:9A-107(a)(1) through (5)."

     SECTION 4.  Section 431:10C-111.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The total number (rounded to the nearest whole number) of notices of intention not to renew a motor vehicle insurance policy, and of notices of intention to condition renewal upon reduction of limits of any coverage, which an insurer may issue, shall be limited for each calendar year to two per cent of the total number of covered policies of the insurer in force at last year-end in each of the insurer's rating territories in use in this State that have completed their required policy periods.  However, the insurer may non-renew or conditionally renew one policy in any of the insurer's rating territories in use in this State if the applicable percentage limitation results in less than one policy.  Cancellations, notices of intention not to renew, and [notice] notices of intention to conditionally renew made pursuant to section 431:10C-111(a)(1), [and] (a)(2), and [section 431:10C-111(e)] (d) shall be independent of and in addition to those permitted under this subsection."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon approval.

INTRODUCED BY:	_____________________________
	BY REQUEST