STAND. COM. REP. NO. 311

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 885

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committees on Government Operations and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 885 entitled:

 

"A BILL FOR AN ACT RELATING TO THE STATE RISK MANAGEMENT AND INSURANCE ADMINISTRATION,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to provide the Comptroller the option to hire an insurance broker on a fixed fee for services basis.

 

     Your Committees received testimony in support of this measure from the Department of Accounting and General Services.  Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs.

 

     Your Committees find that providing the Comptroller with the option to hire an insurance broker on a fixed fee for service basis rather than the current commission basis will result in better value to the public through lower costs of acquiring and insuring State property and liability risks.  Your Committees also find that the current arrangement of the state insurance broker being compensated on a commission basis by the insurance companies from which the State purchases insurance could present a conflict of interest or at minimum the appearance of a conflict of interest.

 

     Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Government Operations and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 885, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 885, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Government Operations and Commerce, Consumer Protection, and Health,

 

________________________________

ROSALYN H. BAKER, Chair

 

________________________________

DONNA MERCADO KIM, Chair