STAND. COM. REP. NO.  712

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 1019

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1019 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE RISK MANAGEMENT AND INSURANCE ADMINISTRATION,"

begs leave to report as follows:

The purpose of this measure is to assist the Comptroller in procuring insurance coverage for the State by allowing insurers procured by the Comptroller to be exempt from certain provisions of the Insurance Code.

The Department of Accounting and General Services testified in support of this measure.  The Department of Commerce and Consumer Affairs provided comments.

     Your Committee has amended this measure by:

     (1)  Deleting the provision allowing insurers procured by the Comptroller to be exempt from certain provisions of the Insurance Code and instead stipulating that a broker submitting a proposal in response to a fixed fee solicitation by the Comptroller and the broker's performance of the activities in accordance with the proposal submitted does not violate sections 431:10-218, 431:13-101, and 431:13-103, Hawaii Revised Statutes;

     (2)  Changing its effective date to July 1, 2112, to facilitate 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1019, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1019, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair