STAND. COM. REP. NO.  446

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 924

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 924 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to provide clarification of the law relating to the interpretation of insurance policies affecting construction professionals.

     The Building Industry Association of Hawaii; The Pacific Resource Partnership; LY, Inc.; Nordic PCL Construction, Inc.; SteelTech, Inc.; HSI Mechanical, Inc.; Shioi Construction, Inc.; Darcey Builders, Inc.; S&M Sakamoto, Inc.; Mega Construction, Inc.; Grace Pacific Corporation; Royal Contracting Co., Ltd.; Tomco Corp.; Nan, Inc.; Heartwood Pacific LLC; Kalu Glass Co., Inc.; Delta Construction Corporation; Clay Chapman Iwamura Pulice & Nervell; Ralph S. Inouye Co., Ltd.; Gentry Homes, Ltd.; Alan Shintani, Inc.; Integrated Security Technologies Inc.; General Contractors Association; and Group Builders Inc. testified in strong support of the bill.  The Hawaii Laborers' Union testified in support of this bill.  Island Insurance and First Insurance Company of Hawaii testified in opposition to the bill.  The Department of Commerce and Consumer Affairs submitted comments.

     Your Committee has amended this bill by changing its effective date to July 1, 2112, to encourage continued discussion on this bill.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 924, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 924, H.D. 1, and be referred to the Committees on Consumer Protection & Commerce and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. MCKELVEY, Chair