STAND. COM. REP. NO. 2623

Honolulu, Hawaii

RE:    S.B. No. 2762

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2762 entitled:

"A BILL FOR AN ACT RELATING TO MONEY TRANSMITTERS,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the protection of consumers who use money transmission services by authorizing the Commissioner of Financial Institutions to require businesses and persons conducting money transmissions to register with a national organization.  This measure also increases money transmitter licensing fees to reflect regulatory expenses.

     Your Committee finds that there is the potential for money transmitters to defraud consumers by not transmitting the deposited money to the requested location.  Some money transmitters also may be unknowingly laundering money due to ignorance of the law.  Your Committee finds that increased regulation of money transmitters is appropriate and that increasing licensing fees will offset the expenses incurred by the Division of Financial Institutions due to the increased regulation.

     Your Committee has amended this measure by:

(1)  Changing "money transmitter" and "licensed money transmitter" to "licensee" for clarity and consistency with the definitions in section 489D-4, Hawaii Revised Statutes;

(2)  Changing "Nationwide Mortgage Licensing System" to "Nationwide Mortgage Licensing System and Registry" to reflect the organization's full name;

(3)  Changing the effective date to July 1, 2050, to promote further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2762, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2762, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair