Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1778, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to support competition in the lending community and contribute to the economic health of Hawaii's financial services loan industry while protecting consumers by repealing Article 9 of the Code of Financial Institutions, which governs depository and nondepository financial services loan companies, and replacing it with two separate articles.

Specifically, this bill establishes an Article A for depository financial services loan companies, which are subject to dual regulatory oversight by the State and the Federal Depository Insurance Corporation (FDIC), and an Article B for nondepository financial services loan companies, which are only subject to state regulation.

Hawaii Financial Services Association submitted testimony in support of the intent of this bill. The Department of Commerce and Consumer Affairs offered comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1778, H.D. 1, and recommends that it pass Third Reading.