STAND. COM. REP. NO.126

Honolulu, Hawaii

, 2001

RE: S.B. No. 1059

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1059 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish an emergency application procedure to allow emergency applications to organize a Hawaii financial institution if the commissioner of financial institutions (commissioner) determines that there is an emergency arising from insolvency of an existing institution or to prevent the failure of an existing institution.

Your Committee received testimony in support of this measure from the Division of Financial Institutions (DFI).

This measure, among other things, also:

(1) Allows the commissioner to summon persons and subpoena witnesses in the course of investigation of matters affecting consumers or depositors;

(2) Clarifies the basis of the commissioner's charges to financial institutions for an examination fee;

(3) Allows the commissioner to order the removal of any institution-affiliated company from office or employment with a Hawaii financial institution if the company has been charged under an indictment, information, or complaint alleging a crime involving dishonesty or breach of trust; and

(4) Allows the commissioner to revoke or suspend any charter of license if a Hawaii financial institution has violated any state or federal laws or regulations.

Your Committee finds that this measure amends certain statutory provisions which were not amended in the adoption of prior amendments to the code of financial institutions and clarifies existing provisions.

Your Committee made technical, nonsubstantive amendments to comport with proper drafting.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1059, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1059, S.D. 1, and be referred to the Committee on Judiciary.

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

____________________________

RON MENOR, Chair