CONFERENCE COMMITTEE REP. NO. 78-12

Honolulu, Hawaii

                 , 2012

RE:    S.B. No. 2655

       S.D. 2

       H.D. 3

       C.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2655, S.D. 2, H.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO PORTABLE ELECTRONICS INSURANCE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Establish provisions for the sale of portable electronics insurance;

     (2)  Require vendors to hold a limited lines license to sell or offer coverage under a policy;

     (3)  Establish sanctions for violations;

     (4)  Establish requirements for termination of insurance; and

     (5)  Establish initial and renewal licensing fees in unspecified amounts.

     Your Committee on Conference finds that there is currently no statutory regulation of the provision of portable electronics insurance.  This measure establishes a regulatory framework that provides important consumer protections and meaningful disclosures.

     Your Committee on Conference has amended this measure by:

     (1)  Deleting the requirement that an insurer have the consent of the vendor and enrolled customer to terminate or otherwise change the terms and conditions of a policy of portable electronics insurance;

     (2)  Deleting the requirement that if an insurer terminates or otherwise changes the terms and conditions of a policy of portable electronics insurance, the insurer shall pay to the enrolled customer at least ten percent of the monthly insurance policy premium paid by the enrolled customer;

     (3)  Establishing fees of $150 for an initial license and $150 per year for the initial or renewal term;

     (4)  Inserting an effective date of January 1, 2013; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2655, S.D. 2, H.D. 3, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2655, S.D. 2, H.D. 3, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ ANGUS L.K. MCKELVEY, Co-Chair	____________________________ CAROL FUKUNAGA, Chair
____________________________ ROBERT N. HERKES, Co-Chair	____________________________ ROSALYN H. BAKER, Co-Chair
____________________________ ISAAC W. CHOY, Co-Chair	____________________________ GLENN WAKAI, Co-Chair