STAND. COM. REP. NO. 314

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1261
                                        




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. 1261 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to allow the Insurance
Commissioner to assess through administrative rules an
application license fee and an annual renewal fee upon captive
insurance companies.

     The Insurance Commissioner, Fiftieth State Risk Management
Services, Inc., J&H Marsh & McLennan, and Hawaii Captive
Insurance Council presented testimony in support of this measure.

     Your Committee finds that the Insurance Division utilizes
more resources when regulating captive insurance companies as
compared to traditional insurance companies, due to their nature
as self-insurance companies.  This measure will offset some
additional expenses.

     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
purpose of S.B. No. 1261 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.


 
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                                   STAND. COM. REP. NO. 314
                                   Page 2


                                   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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