STAND. COM. REP. NO. 940-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2731
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 2731, 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 clarify that premium tax
refunds are to be paid out of the general fund and not the
insurance regulation fund.  Currently, premium taxes are
deposited in the State's general fund and not in the insurance
regulation fund.

     Your Committee finds that this measure ensures that the
appropriate funds are properly debited when premium tax refunds
are made under this section.

     Testimony in support of this measure was received from the
Department of Commerce and Consumer Affairs.  The Tax Foundation
of Hawaii provided comments.

     Technical, nonsubstantive amendments were made for clarity
and consistency.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2731, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached

 
 
                                 STAND. COM. REP. NO. 940-00
                                 Page 2

 
hereto as S.B. No. 2731, S.D. 1, H.D. 1, and be referred to the
Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair