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 S.B. No. 2278 entitled:

begs leave to report as follows:

The purpose of this measure is to reduce regulatory burdens by comprehensively amending and updating Chapter 412, Hawaii Revised Statutes.

Testimony in support of this measure was submitted by the Commissioner of Financial Institutions and Hawaii Bankers Association.

Chapter 412, Hawaii Revised Statutes, the Code of Financial Institutions, has not been comprehensively reviewed since its enactment in 1993. Your Committee finds that the proposed amendments will reduce regulatory burdens, update the Code of Financial Institutions to recognize industry changes, provide more flexibility in supervising and regulating the industry, and ensure adequate protection for the consumer.

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 S.B. No. 2278 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.