STAND. COM. REP. NO. 1530

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 776
                                     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 Consumer Protection and Commerce, to which
was referred S.B. No. 776 entitled: 

     "A BILL FOR AN ACT RELATING TO FINANCIAL SERVICES LOAN
     COMPANIES,"

begs leave to report as follows:

     The purpose of this bill is to permit securities listed on
the Nasdaq National Market to be added to the list of securities
investments in which a depository financial services loan company
is permitted to invest up to twenty-five percent of its total
reserves.

     The National Association of Securities Dealers submitted
testimony supporting passage of the bill.  The Hawaii Financial
Services Association submitted testimony in support of the intent
of the bill.  The Commissioner of Financial Institutions of the
Department of Commerce and Consumer Affairs did not oppose this
measure.

     Your Committee has amended the bill to replace its contents
with that of H.B. No. 664, H.D. 1, which made some technical
corrections not reflected in the Senate version of this measure.
H.B. No. 664, H.D. 1, was passed out earlier this session by your
Committee.  Your Committee has further amended the bill to
correct the reference to the Nasdaq National Market.


 
 
 
 
                                 STAND. COM. REP. NO. 1530
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 776, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
776, H.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   RON MENOR, Chair