STAND. COM. REP. NO.  2147

 

Honolulu, Hawaii

                , 2019

 

RE:   S.B. No. 19

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 19, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO SURPLUS LINES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Simplify the calculation of the surplus lines insurance premium tax rate by amending the calculation to tax the entirety of the premium using the rate established by state law, regardless of location of risk; and

 

     (2)  Repeal the authority of the Insurance Commissioner to enter into interstate compacts to collect surplus lines premium taxes.

 

     The American Property Casualty Association testified in support of this measure.  The Department of Commerce and Consumer Affairs and Wholesale & Specialty Insurance Association provided comments.

 

     Your Committee has amended this measure by changing the effective date to October 1, 2019.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 19, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 19, S.D. 2, H.D. 1.

 

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

 

 

 

 

____________________________

SYLVIA LUKE, Chair