STAND. COM. REP. NO. 765

Honolulu, Hawaii

, 2005

RE: S.B. No. 747

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 747, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MONEY TRANSMITTERS,"

begs leave to report as follows:

The purpose of this measure is to regulate money transmission in the State.

Money transmission means receiving currency or payment instruments to transmit, deliver, or instruct to be delivered to another location, inside or outside the United States, by any means including but not limited to wire, facsimile, courier, or electronic transfer. Money transmission does not include solely providing connection services to the Internet, telecommunications services, or network access.

This bill requires the annual registration of money transmitters with the Commissioner of Financial Institutions and establishes civil penalties for the failure to register.

Your Committee finds that regulation of money transmission is important because it will:

(1) Reduce the potential for customer losses from fraud and unsound business practices;

(2) Prevent the laundering of profits from illegal activities such as, drug distribution, gambling, or prostitution; and

(3) Provide valuable information to financial institutions that provide banking services to money transmitters.

Your Committee has amended the bill by making technical amendments that have no substantive effect.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 747, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 747, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair