STAND. COM. REP. NO. 1747_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1130
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1130, S.D. 1, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HEALTH MAINTENANCE
     ORGANIZATIONS,"

begs leave to report as follows:

     The purpose of this bill is to allow the Insurance Division
to obtain financial information on a more timely basis by:  

     (1)  Requiring Health Maintenance Organizations (HMOs) to
          file quarterly reports with the Insurance Commissioner
          (Commissioner);

     (2)  Requiring the Commissioner to notify HMOs holding a
          certificate of authority (COA) by written notice at
          least 30 days prior to the extension date of the COA;
          and

     (2)  Allowing the Commissioner to impose penalties and other
          administrative sanctions on HMOs that fail to renew
          their COA within 30 days following the extension date.

     The Department of Commerce and Consumer Affairs testified in
support of this bill.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your

 
 
                                 STAND. COM. REP. NO. 1747_______
                                 Page 2

 
Committee is in accord with the intent and purpose of S.B. No.
1130, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair