STAND. COM. REP. NO. 1494

                                   Honolulu, Hawaii
                                                     , 1999

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




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No.
997, H.D. 1, 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 money
          laundering when the value or aggregate value of the
          property involved is less than $10,000 but greater than
          $8,000; and

     (2)  Impose fines of no more than $16,000 or no more than
          twice the value of the property, whichever is greater,
          upon individuals found guilty of a class C felony. 

     Your Committee finds that the minimum $10,000 ceiling for a
money laundering transaction, enables criminal organizations to
avoid prosecution by structuring their illegal transactions to
remain below $10,000.  Your Committee further finds that this
frustrates attempts by law enforcement and prosecutors to pursue
criminal penalties against money launderers until the amount that
they can prove has been laundered surpasses the $10,000 level.
Your Committee agrees that adding a lower offense for money
laundering a lower sum will appropriately penalize such behavior.


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

     Upon further consideration, your Committee has amended this
measure by inserting a saving clause.

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

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



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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