STAND. COM. REP. NO. 3
Honolulu, Hawaii
, 2007
RE: H.B. No. 430
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fourth State Legislature
Regular Session of 2007
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 430 entitled:
"A BILL FOR AN ACT RELATING TO PAYDAY LENDING,"
begs leave to report as follows:
The purpose of this bill is to protect consumers of the check cashing industry. Specifically, this bill, among other things:
(1) Requires check cashers to be licensed;
(2) Establishes requirements for check casher payment plans and business records and reports;
(3) Specifies check casher disclosure requirements, including fees and annual percentage rates; and
(4) Appropriates funds for a Financial Literacy Education Program for consumers.
The Department of Commerce and Consumer Affairs (DCCA) supported the intent of this measure. The Department of Taxation and a concerned individual submitted comments.
Your Committee requested that this bill be re-referred to allow the Committee on Judiciary to review the implications of this measure within that Committee's scope.
Your Committee respectfully requests the Committee on Judiciary to review:
(1) The State Auditor's December 2005 Sunrise Analysis, entitled "Check Cashing and Deferred Deposit Agreements (Payday Loans)", as to the regulation of check cashers; and
(2) The advisability of the provision of this bill appropriating funds to DCCA for the establishment of a Financial Literacy Education Program.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 430 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ ROBERT N. HERKES, Chair |
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