STAND. COM. REP. NO. 987-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3193
                                     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. 3193, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII INSURANCE
     EXCHANGE,"

begs leave to report as follows:

     The purpose of this measure is to provide for improved,
cost-effective administration of current and future public
employee benefit obligations, by transferring administration of
these obligations from the Hawaii Public Employees Health Fund,
to a newly established captive insurance company to be known as
the Hawaii Insurance Exchange.

     Testimony in support of this measure was submitted by the
Insurance Division of the Department of Commerce and Consumer
Affairs.

     The Hawaii Public Employees Health Fund had "no position" on
this measure.  The Office of Information Practices also testified
that they had "no position" on the measure, however, expressed
concerns regarding exceptions to the Public Agency Meeting and
Records law of Hawaii Revised Statutes chapter 92.

     The Department of Budget and Finance submitted testimony
which indicated that they had concerns with this measure.


 
 
 
                                 STAND. COM. REP. NO. 987-00
                                 Page 2

 
     Upon consideration of this measure, your Committee has
amended this bill by replacing its contents with the substantive
provisions of H.B. No. 3009, H.D. 1, a similar bill that was
reported from your Committee on Consumer Protection and Commerce
earlier in this session.

     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. 3193, S.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 3193, S.D. 1, H.D. 1, and be referred to the
Committees on Labor and Public Employment and Finance.

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



                                   ______________________________
                                   RON MENOR, Chair