Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 480, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to prevent money laundering by creating a new chapter in the Hawaii Revised Statutes to register and regulate persons providing money transmission services, ultimately protecting the consumer.

The Office of the Lieutenant Governor, Attorney General, Department of Commerce and Consumer Affairs, Department of the Prosecuting Attorney of the City and County of Honolulu, Hawaii Credit Union League, and a concerned individual testified in support of this bill. The Hawaii Bankers Association testified in support of the bill with technical amendments. A concerned individual submitted comments.

Your Committee finds that this bill will require money transmission businesses in Hawaii to register with the State, making it difficult for these businesses to conduct illegal activity. However, this is a complex issue and your Committee finds that its importance warrants continued discussion.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 480, H.D. 1, and recommends that it be referred to the Committee on Finance.