Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1060, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify confidentiality requirements for applications and records of escrow depositories, and procedures relating to branch closings and voluntary termination of operations. The bill also authorizes the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs to set fees by administrative rules.

Currently, confidentiality provisions and termination procedures are established in administrative rules. The voluntary termination procedures applicable to escrow depositors are the same procedures as those applicable to other financial institutions regulated by the Division of Financial Institutions.

Your Committee believes that codifying confidentiality and termination procedures in the Hawaii Revised Statutes will remove uncertainty and provide uniformity and clarity concerning these requirements for both escrow depositories and the public.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1060, S.D. 1, and recommends that it pass Third Reading.