STAND. COM. REP. NO.  155-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2504

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 2504 entitled:

"A BILL FOR AN ACT RELATING TO ENTITIES REGULATED BY THE INSURANCE COMMISSIONER,"

begs leave to report as follows:

The purpose of this measure is to make various amendments to laws relating to entities regulated by the Department of Commerce and Consumer Affairs' Insurance Division including:

     (1)  Statutorily establishing certain fees and penalties for mutual benefit societies;

     (2)  Clarifying provisions relating to certificates of registration and certificates of authority of mutual benefit societies;

     (3)  Deleting obsolete provisions;

     (4)  Increasing certain filing fees for fraternal benefit societies and health maintenance organizations; and

     (5)  Clarifying laws relating to service contracts.

The Department of Commerce and Consumer Affairs supported this measure with amendments.  The Hawaii Medical Service Association provided comments.

     Your Committee has amended this measure by:

     (1)  Requiring rather than allowing the Insurance Commissioner to adopt rules for the implementation and administration of the laws relating to mutual benefit societies;

     (2)  Changing the effective date to July 1, 2050, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2504, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2504, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

RYAN I. YAMANE, Chair