STAND. COM. REP. NO.  950

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1068

      S.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred S.B. No. 1068, S.D. 2, 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 National Mortgage Licensing System (NMLS);

     (2)  Creating a process for licensees to voluntarily surrender their licenses;

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

     (4)  Authorizing the Commissioner to enter into agreements with NMLS with regard to regulation of the money transmitter industry;

     (5)  Increasing the application, initial license, name change, and change of control fees for licensees;

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

     (7)  Increasing the penalty amount that can be assessed per day of noncompliance with the licensing parameters; and

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

The Commissioner of Financial Institutions testified on behalf of the Department of Commerce and Consumer Affairs in support of this measure.

     Your Committee finds it prudent at this time to move this bill forward as-is, but highly recommends that the Commissioner of Financial Institutions work closely with the Chair of your Committee on Consumer Protection & Commerce regarding the Division of Financial Institution's cash flow analysis and how the change in fee structure will affect the Department's operating costs.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1068, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

CLIFT TSUJI, Chair