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. 1060 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the requirements for escrow depositories relating to confidentiality of records, branch closings, termination of operations, and fees.

The Commissioner of Financial Institutions testified in favor of and the Office of Information Practices submitted comments on the measure.

This measure establishes the statutory authority for administrative rules governing the confidentiality of escrow depository records and voluntary termination procedures by codifying requirements currently set forth in the rules. Additionally, the measure establishes specific procedures for branch closings, authorizes a fee for record searches, and authorizes the commissioner to effect fee changes by rule.

Your Committee finds that the measure's grant of discretion to the commissioner to withhold records from public disclosure conflicts with the requirements of chapter 92F, Hawaii Revised Statutes (HRS), the Uniform Information Practices Act (UIPA). The UIPA eliminates the discretion of government employees to withhold information and establishes specific exceptions to the general rule of disclosure. Accordingly, your Committee has amended this measure by replacing the language in section 1 therein relating to confidential records with language that requires public disclosure of information contained in an application or record of an escrow depository unless the commissioner is authorized to withhold the information under chapter 92F, HRS. Your Committee has further amended this measure to reflect preferred drafting style.

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. 1060, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1060, S.D. 1, and be referred to the Committee on Ways and Means.