STAND. COM. REP. NO.  1590-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2854

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2854, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to make various amendments throughout Title 24 of the Hawaii Revised Statutes relating to:

     (1)  Property insurance;

     (2)  Market conduct;

     (3)  Insurance premium taxes;

     (4)  Insurance contracts;

     (5)  Health insurers, mutual benefit societies, and health maintenance organizations;

     (6)  Sponsored captive insurance companies;

     (7)  Mental illness and alcohol and drug dependence benefits;

     (8)  Hawaii Hurricane Relief Fund; and

     (9)  Prescription drug benefits.

The Department of Commerce and Consumer Affairs and Hawaii Medical Service Association testified in support of this measure.  The Tax Foundation of Hawaii and Property Casualty Insurers Association of America provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2854, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair