STAND. COM. REP. NO. 734________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 997
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 997 entitled: 

     "A BILL FOR AN ACT RELATING TO MONEY LAUNDERING,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Create a class C felony for persons guilty of
          moneylaundering aggregate sums less than $10,000 but
          greater than $8,000; and

     (2)  Fine individuals guilty of a moneylaundering class C
          felony no more than $10,000, twice the value of the
          property, whichever is greater, or both.

     Testimony in support of this bill was received from the
Attorney General, the Department of the Prosecuting Attorney of
the City and County of Honolulu, and the Honolulu Police
Department.  Additional testimony was received from the Office of
the Public Defender.

     Your Committee finds that savvy criminals are structuring
transactions so that they remain under the $10,000 aggregate sum
so as to avoid criminal liability.

     Your Committee has amended this bill by:


 
 
 
                                 STAND. COM. REP. NO. 734________
                                 Page 2

 
     (1)  Penalizing moneylaundering offenders either $16,000 or
          $25,000 (depending on whether it is a class B or class
          C felony) or twice the value of the property, whichever
          is greater; and

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

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 997, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
997, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   PAUL T. OSHIRO, Chair