THE SENATE	S.B. NO.	524
THIRTY-SECOND LEGISLATURE, 2023		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO BUSINESS REGULATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that certain insurers in the State that enjoy generous tax breaks have compensated their top executives and board members handsomely, while simultaneously cutting the jobs of many rank-and-file employees in company restructurings. The legislature further finds that the unwillingness of many of these insurers to disclose the compensation of their top executives and board members has raised questions regarding corporate accountability and has led to an erosion of public trust.

Therefore, the purpose of this Act is to provide increased accountability and oversight of executive compensation by authorizing the insurance commissioner to approve certain insurer salary increases.

Section 2. Section 431:2-201, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The commissioner may:

(1) Make reasonable rules for effectuating any provision of this code, except those relating to the commissioner's appointment, qualifications, or compensation. The commissioner shall adopt rules to effectuate article 10C of chapter 431, subject to the approval of the governor's office and the requirements of chapter 91;

(2) Conduct examinations and investigations to determine whether any person has violated any provision of this code or to secure information useful in the lawful administration of any provision;

(3) Require applicants to provide fingerprints and pay a fee to allow the commissioner to make a determination of license eligibility after obtaining state and national criminal history record checks from the Hawaii criminal justice data center and the Federal Bureau of Investigation;

(4) Require, upon reasonable notice, that insurers report any claims information the commissioner may deem necessary to protect the public interest; [and]

(5) Upon showing of good cause, waive or modify, in whole or part, any or all fees by order[.]; and

(6) Require pre-approval from the commissioner for any salary increase granted to any person receiving from an insurer a salary exceeding $1,000,000."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2040.

Report Title:

Insurance; Insurance Commissioner; Insurers; Salary Increases; Pre-Approval

Description:

Authorizes the Insurance Commissioner to require the Commissioner's pre-approval for certain salary increases granted to any person receiving a salary over a certain amount from an insurer. Takes effect 7/1/2040. (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.