Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 595, H.D. 1, S.D. 1, entitled:

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to ease the regulatory burden on check cashers without reducing protections for consumers by:

1. Increasing the length of time the deposit of a customer's check by a check cashing service may be deferred from 31 to 32 days;
2. Increasing the maximum face amount of a check subject to deferred deposit, from $300 to $600; and
3. Increasing the maximum fee for a personal check deferred deposit from 15 to 20 percent of the face amount of the check.

Your Committee on Conference finds that out-of-state check cashers have an unfair advantage over their Hawaii counterparts. Out-of-state companies engaging in interstate commerce are immune to regulation under Hawaii's laws, and may therefore be subject to regulatory restrictions of their home state that are less stringent than those applicable to their Hawaii counterparts.

Your Committee on Conference believes that efforts should be made to level the playing field for Hawaii's check cashers. Extending the allowable check deferral period from 31 to 32 days, and increasing the maximum face value of a check cashed from $300 to $600, represent reasonable attempts to achieve this goal.

However, your Committee on Conference has concerns that raising the maximum fee for personal check deferred deposits from 15 to 20 percent, is an increase in the allowed "interest" rate for check cashing transactions that would unduly burden consumers. Accordingly, your Committee on Conference has amended this measure by reverting back to a 15 percent maximum.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 595, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 595, H.D. 1, S.D. 1, C.D. 1.