STAND. COM. REP. NO. 3249

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2314
                                        H.D. 1
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2314, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

     The purpose of this bill is to modify certain provisions of
the Hawaii Hurricane Relief Fund law.

     Specifically, this bill:

     (1)  Clarifies that the fund will not assess property and
          casualty insurers on their gross direct written
          premiums for property insurance if the insurers offer
          the standard extended coverage endorsements on
          commercial or residential property; and

     (2)  Terminates coverage for commercial property.

     This bill also requires the Hawaii Hurricane Relief Fund to
set aside funds to provide policyholders with matching grants to
install hurricane damage mitigation devices.


 
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                                   STAND. COM. REP. NO. 2349
                                   Page 2


     Your Committee finds that this measure will ensure fairness
in the assessment process and reduce potential liabilities of the
Hawaii Hurricane Relief Fund.

     Your Committee has amended this measure by changing the
effective date to January 1, 2011 to ensure continued discussion
of the matter.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2314, H.D. 1, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 2314,
H.D. 1, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB2314 SD2