REPORT TITLE:



DESCRIPTION:


 
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                                                        1127
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO INSURANCE. 



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 431, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to article 2 read as follows:
 
 3      "431:2-215  Health insurance revolving fund.  (a)  There is
 
 4 established a revolving fund in the state treasury to be
 
 5 administered by the commissioner and to be designated as the
 
 6 health insurance revolving fund.
 
 7      (b)  The commissioner may expend moneys from the health
 
 8 insurance revolving fund for the regulation of health insurance,
 
 9 including but not limited to, the hiring of professional,
 
10 technical, and support staff, compliance, education, examination,
 
11 investigation, and rate and policy analysis.
 
12      (c)  Beginning with fiscal year 2000-2001 and each fiscal
 
13 year thereafter, each mutual benefit society under article 1 of
 
14 chapter 432, health maintenance organization under chapter 432D,
 
15 and any other entity offering or providing health benefits or
 
16 services under the regulation of the commissioner, except an
 
17 insurer licensed to offer health insurance under article 10A,
 
18 shall deposit with the commissioner by July 1 of each year an
 
19 assessment based on a pro rata basis to be determined and imposed
 

 
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 1 by the commissioner.  The aggregate annual assessment shall not
 
 2 exceed $500,000.  The assessment shall be credited to the health
 
 3 insurance revolving fund.
 
 4      (d)  The commissioner shall report annually to the
 
 5 legislature before the convening of each regular session as to
 
 6 fund administration and expenditures.
 
 7      (f)  The commissioner may adopt rules in accordance with
 
 8 chapter 91 to effectuate the purposes of this section."
 
 9      SECTION 2.  Upon approval of this Act, each mutual benefit
 
10 society under article 1 of chapter 432, Hawaii Revised Statutes,
 
11 health maintenance organization under chapter 432D, Hawaii
 
12 Revised Statutes, and any other entity offering or providing
 
13 health benefits or services under the regulation of the
 
14 commissioner, except an insurer licensed to offer health
 
15 insurance under article 10A of chapter 431, Hawaii Revised
 
16 Statutes, shall pay to the insurance commissioner by September
 
17 30, 1999, an one-time assessment in an amount not to exceed an
 
18 aggregate amount of $500,000, to be credited to the health
 
19 insurance revolving fund.
 
20      SECTION 3.  There is appropriated out of the health
 
21 insurance revolving fund the sum of $500,000, or so much thereof
 
22 that may be necessary for fiscal year 1999-2000 and the sum of
 
23 $500,000, or so much thereof as may be necessary for fiscal year
 

 
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 1 2000-2001 to carry out the purposes of this Act.
 
 2      The sums appropriated shall be expended by the department of
 
 3 commerce and consumer affairs.
 
 4      SECTION 4.  New statutory material is underscored.
 
 5      SECTION 5.  This Act shall take effect upon its approval. 
 
 6 
 
 7                           INTRODUCED BY:  _______________________
 

 
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