Report Title:

Mutual Benefit Societies; Audit

Description:

Requires the Insurance Commissioner to appoint an independent auditor to conduct a financial and operational audit of mutual benefit societies established in Hawaii prior to 1950. (PROPOSED SB3016 HD1)

THE SENATE	S.B. NO.	3016
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII		H.D. 1
		PROPOSED

A BILL FOR AN ACT

RELATING TO MUTUAL BENEFIT SOCIETIES.

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

     SECTION 1.  (a)  The insurance commissioner shall appoint an independent auditor to conduct a comprehensive financial and operational audit of each domestic mutual benefit society formed under article 1 of chapter 432, Hawaii Revised Statutes, prior to 1950.  The audit shall determine the impact of insurance reimbursements on the supply of physicians in the state.

     (b)  The insurance commissioner shall contract the services of an independent certified public accountant, accounting firm, or other appropriate entity for the purposes of conducting the audit.

     (c)  The audit shall be submitted to the legislature and the governor not later than twenty days prior to the convening of the regular session of 2011.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $        or so much thereof as may be necessary for fiscal year 2008-2009 for a comprehensive audit of Hawaii's domestic mutual benefit societies established prior to 1950.

     The sum appropriated shall be expended by the department of the commerce and consumer affairs for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2008.