STAND. COM. REP. NO.  396-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2499

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2499 entitled:

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

begs leave to report as follows:

The purpose of this bill is to establish a more flexible fee structure to reflect changes in the regulatory environment and the ongoing monitoring of the financial-services industry.

The Division of Financial Institutions of the Department of Commerce and Consumer Affairs supported this bill.  The Hawaii Bankers Association and Hawaii Financial Services Association opposed this measure.

     After careful consideration, your Committee has amended this bill by:

     (1)  Eliminating the authority of the Commissioner of Financial Institutions to establish, increase, decrease, or repeal various fees by rule;

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     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. 2499, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2499, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair