Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2143, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to protect consumers of money transmission services and prevent money transmission from being used to launder illegal profits and facilitate illegal activities, by licensing and regulating money transmitters.

The Department of Commerce and Consumer Affairs, Honolulu Prosecuting Attorney, Hawaii Bankers Association, Hawaii Credit Union League, Laborers' International Union of North America, Local 368, Non-Bank Funds Transmitters Group, Kwik Money Remittance, and several concerned individuals supported this bill.

Currently the State has no ability to regulate money transmitters. Your Committee finds that this bill will allow the State to monitor the activities of the industry and protect consumers.

Your Committees have amended this bill by changing its effective date to July 1, 2050, to encourage further discussion of the measure.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2143, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2143, S.D. 2, H.D. 1, and be referred to the Committee on Finance.