STAND. COM. REP. NO. 154-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2465
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2465 entitled: 

     "A BILL FOR AN ACT RELATING TO THE CODE OF FINANCIAL
     INSTITUTIONS,"

begs leave to report as follows:

     The purpose of this bill is to improve the ability of the
Division of Financial Institutions (Division) to administer the
Code of Financial Institutions (Code) by:

     (1)  Empowering the Division to:

          (A)  Waive fees for good cause;

          (B)  Expedite emergency applications;

          (C)  Subpoena witnesses; and

          (D)  Recover costs of public requests for search,
               review, or segregation of Division records;

     (2)  Correcting inadvertent errors in Acts 245 and 264,
          Session Laws of Hawaii 1999;

     (3)  Deleting language inadvertently restricting the
          unlimited investment allowed by financial institutions
          in State of Hawaii obligations;


 
 
                                 STAND. COM. REP. NO. 154-00
                                 Page 2

 
     (4)  Clarifying the grounds for removing institution-
          affiliated persons, and revoking or suspending a
          charter or license; and

     (5)  Amending foreign bank application procedures under the
          Code to increase uniformity with procedures applicable
          to all financial institutions regulated by the
          Division.

     Your Committee received testimony in support of this measure
from the Department of Commerce and Consumer Affairs.

     Your Committee has made technical, nonsubstantive amendments
for purposes of clarity, consistency, and style.

     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 H.B. No. 2465, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2465, H.D. 1, and be referred to the Committee on Finance.

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



                                   ______________________________
                                   RON MENOR, Chair