STAND. COM. REP. NO. 297

Honolulu, Hawaii

RE:    S.B. No. 1398

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 1398 entitled:

"A BILL FOR AN ACT RELATING TO ESCROW DEPOSITORIES,"

begs leave to report as follows:

     The purpose of this measure is to revise and update the law regarding escrow depositories. 

     Specifically, this measure:

     (1)  Clarifies which escrow transactions are covered by the statute and which are not;

     (2)  Updates the statute to adequately reflect the present day size of the transactions routinely handled by the escrow industry;

     (3)  Provides for more flexibility in supervising and regulating the industry; and

     (4)  Ensures adequate protection for the consumer.

     The Department of Commerce and Consumer Affairs testified in support of this measure.

     Your Committee finds that chapter 449, Hawaii Revised Statutes, which governs the licensing and regulation of escrow depositories, needs to be updated to reflect changes in the industry and to protect consumers.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1398 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair