STAND. COM. REP. NO. 606

Honolulu, Hawaii

RE:    S.B. No. 1400

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 1400 entitled:

"A BILL FOR AN ACT RELATING TO FINANCIAL ABUSE,"

begs leave to report as follows:

     The purpose of this measure is to require financial institutions and licensed escrow depositories to report suspected instances of financial abuse directed towards, targeting, or committed against an elder or a dependent adult to a local law enforcement agency.

     The Department of Commerce and Consumer Affairs and one individual submitted testimony in support of this measure.  Hawaii Financial Services Association and Hawaii Credit Union League submitted testimony in support of the intent of this measure.  First Hawaiian Bank, and the Escrow Association of Hawaii submitted comments.

     Your Committee finds that reported instances of financial abuse of elders and dependent adults have become increasingly widespread.  State-regulated financial institutions can be instrumental in curtailing this disturbing trend by promptly reporting suspected incidents of financial abuse to local law enforcement agencies.

     Your Committee has amended this measure by:

     (1)  Removing licensed Hawaii escrow depositories from the reporting requirements of this measure, as escrow depositories are not included in the federal law's definition of financial institutions;

     (2)  Adding language to provide immunity from liability for any person who makes a report under the provisions of this measure in good faith and with the reasonable belief that action is warranted; and

     (3)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1400, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1400, S.D. 1, and be referred to the Committees on Commerce, Consumer Protection, and Affordable Housing and Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committee on Human Services and Public Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair