Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1128
                                     S.D. 2
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Health, to which was referred S.B. No.
1128, S.D. 2, entitled:


begs leave to report as follows:

     The purpose of this bill is to increase fines for insurance
code violations, conforming disclosure requirements for mutual
benefit societies and health maintenance organizations, and
require fraternal benefit societies to be licensed in accordance
with insurance code requirements for solicitors.

     Furthermore, this measure provides a limited savings clause
for violations of the insurance code that occur before the
effective date of the Act.

     Your Committee has amended this measure by deleting its
contents and replacing it with the contents of H.B. No. 1066,
H.D. 1.  As amended, this measure is, for all practical purposes,
identical to the version of the bill as received, but without the
savings clause, and a few other minor, grammatical differences.

     Your Committee finds that increased penalties are
appropriate and clarifying amendments are needed regarding the
licensing of fraternal benefit society agents.

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                                 STAND. COM. REP. NO. 1197
                                 Page 2

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of S.B.
No. 1128, S.D. 2, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1128,
S.D. 2, H.D. 1, and be referred to the Committee on Consumer
Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health,

                                   ALEXANDER C. SANTIAGO, Chair

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