STAND. COM. REP. NO. 795

Honolulu, Hawaii

RE: S.B. No. 1369

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1369 entitled:

"A BILL FOR AN ACT RELATING TO TITLE 24, HAWAII REVISED STATUTES,"

begs leave to report as follows:

The purpose and intent of this measure is to amend net solvency report filing requirements for mutual benefit societies, dental insurers, and health maintenance organizations, effective October 1, 2025.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that existing law requires mutual benefit societies, health maintenance organizations, and dental insurers to file their fourth quarter net solvency reports by February 14 and their annual blank filings by March 1. Since additional accounting adjustments may occur during the two-week differential, supplemental efforts have been required to reconcile these differences. By amending the filing date for fourth quarter net solvency reports from February 14 to March 1, the information from the fourth quarter net solvency reports should align with what will be reported in the annual blank filings. This measure will optimize the filing process for mutual benefit societies, health maintenance organizations, and dental insurers by reducing the compliance burden on these entities and allow them to complete their filings in a more efficient manner, as well as streamline regulation for the Insurance Division of the Department of Commerce and Consumer Affairs.

Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1369, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1369, S.D. 1, and be placed on the calendar for Third Reading.

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

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JARRETT KEOHOKALOLE, Chair