STAND. COM. REP. NO. 26

Honolulu, Hawaii

, 2005

RE: H.B. No. 644

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 644 entitled:

"A BILL FOR AN ACT RELATING TO POOLED INSURANCE,"

begs leave to report as follows:

The purpose of this bill is to give contractors more options for obtaining affordable liability insurance by repealing provisions of the Insurance Code that limit pooled insurance for construction projects, to projects that are estimated to cost $50,000,000 or more.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs and the Hawaii Independent Insurance Agents Association.

Your Committee finds that deletion of the minimum dollar amount on pooled insurance would allow contractors and insurers to determine among themselves whether pooled insurance would be an economically advantageous and viable alternative. Your Committee further finds that there is a lack of liability insurance for contractors doing residential work, and this bill will give contractors more insurance options that may help to reduce costs to their employees, and also lower construction costs overall.

However, although this measure would directly affect contractors, no contractors submitted testimony on this bill. Therefore, your Committee has changed the effective date of this bill to July 1, 2099, to facilitate direct discussion with contractors.

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 H.B. No. 644, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 644, H.D. 1, and be placed on the calendar for Third Reading.

 

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

 

____________________________

KENNETH HIRAKI, Chair