Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 2315 entitled:

begs leave to report as follows:

The purpose of this measure is to comprehensively amend and update the Code of Financial Institutions to reduce regulatory burden, recognize changes in the industry, provide flexible regulation, and protect consumers.

Testimony in support of this measure was submitted by the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs and Hawaii Bankers Association. No testimony in opposition to this measure was submitted to your Committee.

Your Committee finds that the amendments proposed in this measure will result in reducing regulatory burden by eliminating obsolete requirements and improving the procedures for the licensing of financial institutions.

Technical, non-substantive amendments were made to this measure for clarity and 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 H.B. No. 2315, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2315, S.D. 1, and be referred to the Committee on Ways and Means.