STAND. COM. REP. NO.  1416

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1071

      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. 1071, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to update the State's Code of Financial Institutions, Chapter 412, Hawaii Revised Statutes, to reflect changes to banking laws at the federal level and increased monitoring activities required of the Division of Financial Institutions.

     Among other things, this measure:

(1)  Specifies additional enforcement and investigatory powers of the Commissioner of Financial Institutions;

(2)  Amends limits on lending and extension of credit to account for derivative transactions;

(3)  Amends real estate holding requirements for financial institutions;

(4)  Updates terminology under the Code of Financial Institutions Law; and

(5)  Statutorily establishes fees and assessments previously determined by the Commissioner of Financial Institutions by rule.

The Department of Commerce and Consumer Affairs, Hawaii Bankers Association, and a concerned individual supported this measure.  The Hawaii Financial Services Association commented on 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. 1071, 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