STAND. COM. REP. NO.  891

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 262

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 262, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to expand the authority of the Insurance Division’s Insurance Fraud Investigations Unit, renamed the Insurance Fraud Investigation Branch, to prevent, investigate, and prosecute, both civilly and criminally, insurance fraud beyond motor vehicle insurance cases, to all lines of insurance except workers’ compensation.

     The Department of Commerce and Consumer Affairs, Hawaii Medical Service Association, National Association of Insurance and Financial Advisors Hawaii, Hawaii Association of Health Plans, American Council of Life Insurers, and State Farm Insurance Companies testified in support of this bill.  The Department of the Attorney General offered comments.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 H.B. No. 262, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 262, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair