STAND. COM. REP. NO. 898
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 Judiciary, to which was referred S.B. No. 1059, S.D. 1, 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 persons 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;
(4) Allows the Commissioner to revoke or suspend any charter or license if a Hawaii financial institution has violated any state or federal laws or regulations; and
(5) 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 finds that this measure would enhance the operational efficiency and the economic self-sufficiency of the DFI. The new statutory provision allowing an emergency approval of an application of an institution is especially necessary in cases of insolvency of another institution, when there may not be enough time to prevent a total shutdown of operations of the insolvent institution. Emergency approval of the application would allow the applicant to immediately assume operations of the insolvent institution.
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 S.B. No. 1059, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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____________________________ BRIAN KANNO, Chair |
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