Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 2903 entitled:

begs leave to report as follows:

The purpose of this measure is to register and regulate persons providing money transmission services.

Testimony in support of this measure was received from the

Office of the Lieutenant Governor, Department of Commerce and Consumer Affairs, Honolulu Prosecuting Attorney, Non-Bank Funds Transmitters Group, Philippine National Bank-Honolulu Agency, and one individual.

Your Committee finds that this measure establishes a much-needed system of registration for money transmitters doing business in the State that are not regulated by existing laws applicable to traditional financial institutions. This measure also provides significant protections for consumers who use the services of money transmitters by providing a degree of accountability and transparency and authorizing a private right of action against entities engaged in money transmission services that violate the registration requirement.

Your Committee has amended the measure by making technical, nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2903, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2903, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.