CONFERENCE COMMITTEE REPORT NO. 138

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2314
                                  H.D. 1
                                  S.D. 2
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2314, H.D. 1, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO INSURANCE,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to modify certain provisions
of the Hawaii Hurricane Relief Fund (HHRF) law.  

     Specifically, this bill:

     (1) Clarifies that the HHRF will not assess property and
         casualty insurers on their gross direct written premiums
         for property insurance if the insurers offer the
         standard extended coverage endorsements on commercial or
         residential property;

     (2) Terminates coverage for commercial property; and

 
 
                            CONFERENCE COMMITTEE REPORT NO. 138
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     (3) Requires the HHRF to set aside funds to provide
         policyholders with matching grants to install hurricane
         damage mitigation devices.

     After careful consideration, your Committee on Conference
has amended this measure by:

     (1) Deleting the provision which develops a comprehensive
         loss reduction plan for hurricane peril; and

     (2) Incorporating a section to provide for the HHRF advisory
         committee to study the issue of hazard mitigation,
         including the providing of matching grants to
         policyholders who install mitigative devices.

     Technical, nonsubstantive amendments have also been made for
clarity and style.

     The study by the HHRF advisory committee shall also take
into consideration and provide advisement for the development of:

     (1) Improvements to current practices and procedures at HHRF
         for application and issuance to policyholders of "Wind
         Resistive Devices Credits" used as the basis for
         internal administrative processing of matching grants;

     (2) Hazard mitigation incentives for policyholders of
         property insurers, and the development of promotional
         material for these incentives; 

     (3) A marketing plan designed to promote awareness of the
         hazard mitigation program;

     (4) Co-operative public/private sector marketing programs
         for the hazard mitigation program; and 

     (5) A timetable for completion of the study.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 2314, H.D. 1, S.D. 2, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 2314, H.D. 1, S.D. 2, C.D. 1.


 
 
 
                            CONFERENCE COMMITTEE REPORT NO. 138
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                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              RON MENOR, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       BRIAN Y. YAMANE, Co-Chair