CONFERENCE COMMITTEE REP. NO. 50

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 1068

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1068, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Authorize the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs to require money transmitters to register with NMLS;

     (2)  Establish procedures for a licensed money transmitter to surrender its license; and

     (3)  Amend the bond requirement, fee structure for services provided by the Division of Financial Institutions, and the fine for violations of money transmitter regulations.

     Your Committee on Conference finds that the Money Transmitter Act, codified as chapter 489D, Hawaii Revised Statutes, was originally enacted in 2006 to protect consumers of money transmission services and prevent money transmission from being used to facilitate illegal activities.  This measure enables the Commissioner of Financial Institutions of the Department of Commerce and Consumer Affairs to more effectively enforce the money transmitters law and more appropriately supervise, regulate, and examine licensees.  This measure also ensures that the Commissioner of Financial Institutions has sufficient funds to effectively regulate the money transmitter industry.

     Your Committee on Conference has amended this measure by inserting an effective date of upon approval.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1068, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1068, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CLIFT TSUJI, Co-Chair	____________________________ ROSALYN H. BAKER, Chair
____________________________ ANGUS L.K. MCKELVEY, Co-Chair	____________________________ CLAYTON HEE, Co-Chair
____________________________ JAMES KUNANE TOKIOKA, Co-Chair	____________________________ WILL ESPERO, Co-Chair