STAND. COM. REP. NO. 757

Honolulu, Hawaii

, 2023

RE: H.B. No. 565

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 565, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE SELF-INSURANCE AGAINST PROPERTY AND CASUALTY RISKS,"

begs leave to report as follows:

The purpose of this measure is to establish and appropriate funds for the State Self-Insurance Against Property and Casualty Risks Special Fund to provide the State with self-insurance coverage against property and casualty risks.

Your Committee received comments on this measure from the Department of Accounting and General Services and Department of Budget and Finance.

Your Committee finds that the State currently purchases third-party insurance through its risk management and insurance administration to cover the State's property and casualty risks. Property and casualty insurance provides risk mitigation to minimize the State's loss exposure. Your Committee further finds that the State's property and casualty insurance premium costs are significant and subject to increases. This measure is intended to save the State the cost of its annual insurance premiums for property and casualty risks.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 565, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

MARK M. NAKASHIMA, Chair