Opinion ID: 2634942
Heading Depth: 1
Heading Rank: 7

Heading: DCCA and DBF overhead

Text: HIC notes that over $4,000,000.00 was transferred from the IRF to support the overhead of the DCCA and $375,000.00 for the benefit of the DBF. The State argues that these funds constituted the insurance division's pro rata share of the DCCA's and the DBF's expenses, pursuant to HRS §§ 36-27, [9] 36-30 (Supp.2003), [10] and 431:2-215(b). [11] It is apparent that, under San Juan Cellular, the monies paid to the DCCA and to the DBF were used for the regulation or benefit of the parties upon whom the assessment is imposed. See Bidart Bros., 73 F.3d at 931. In return for the insurance division providing its pro rata share of its costs, the DCCA provided the insurance division with, inter alia, personnel management services, review and processing of the insurance division's expenditures, the preparation of its annual operating budget, a forum for contested case hearings, computer system support, and various administrative services. The DBF provided the insurance division with, inter alia, oversight of budget preparation and execution, determination of budgetary requirements and expenditures, management of employee benefit programs, management of public debt, and treasury programs. The aforementioned services provided by the DCCA and the DBF to the insurance division assist it in carrying out its regulatory functions, and, accordingly, the expenditures that the insurance division was mandated to pay to the DCCA and the DBF do not constitute taxes under the San Juan Cellular test.