STAND. COM. REP. NO.  1683-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3008

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 3008, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE CODE OF FINANCIAL INSTITUTIONS,"

begs leave to report as follows:

     The purpose of this bill is to streamline and update the Code of Financial Institutions to improve the regulation of financial institutions in Hawaii by the Department of Commerce and Consumer Affairs (DCCA).  Among other things, this measure:

     (1)  Requires financial services loan companies to conspicuously display their licenses;

     (2)  Addresses temporary closures of Hawaii financial institutions during emergencies;

     (3)  Clarifies the authority of a person to serve as a trustee or trust company;

     (4)  Clarifies how prepayment penalties are calculated;

     (5)  Clarifies when the Commissioner of Financial Institutions may examine a financial institution holding company; and

     (6)  Places a Hawaii-licensed foreign bank on equal footing with a Hawaii state-chartered financial institution when relocating its place of business less than a mile from its existing location.

     The Hawaii Financial Services Association testified in support of this bill.  DCCA provided comments.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3008, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3008, S.D. 2, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair