STAND. COM. REP. NO.  1420

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1068

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1068, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to enable the Commissioner of Financial Institutions to more effectively regulate, supervise, and examine the money transmitters industry by, among other things:

     (1)  Authorizing the Commissioner to require money transmitter licensees to register with the Nationwide Mortgage Licensing System (NMLS) and to enter into agreements or contracts with the operators of NMLS or other entities designated by NMLS for the purpose of regulation of the money transmitter industry;

     (2)  Creating a process for licensees to voluntarily cease business and surrender their license;

     (3)  Increasing the amounts of the surety bonds required of licensees;

     (4)  Updating statutory language by deleting references to building and loan associations and savings and loan associations in the licensing and examination provisions of the Money Transmitters Act;

     (5)  Increasing application, license, administrative, and penalty fee amounts for money transmitter licensees;

     (6)  Establishing a schedule of license renewal fees based upon the number of a licensee's annualized money transmissions; and

     (7)  Providing for background checks of money transmitter licensees.

The Department of Commerce and Consumer Affairs and an individual provided testimony in support of this measure.

     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. 1068, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair