STAND. COM. REP. NO. 382

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1133
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 1133 entitled: 

     "A BILL FOR AN ACT RELATING TO THE INSURANCE CODE,"

begs leave to report as follows:

     The purpose of this measure is to allow the Insurance
Commissioner to hire staff attorneys who are exempt from civil
service.

     The Insurance Commissioner presented testimony in support of
this measure.

     The Insurance Division is in the process of establishing a
legal section.  Without this measure, those attorneys would
become civil service employees, according to state personnel
policy.  The measure would give the Insurance Commissioner
flexibility to hire attorneys with insurance expertise.
Moreover, there are no other civil service attorneys in the
Executive Branch.

     This measure would give the Insurance Commissioner
flexibility to hire and retain attorneys with insurance expertise
conforming these positions with state government policy.

     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

 
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                                   STAND. COM. REP. NO. 382
                                   Page 2


purpose of S.B. No. 1133 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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