STAND. COM. REP. NO. 651

Honolulu, Hawaii

RE:    S.B. No. 949

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 949, S.D. 1, 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 make various updates to the money transmitters law, chapter 489D, Hawaii Revised Statutes, including:

     (1)  Clarifying permissible investment requirements for money transmitter licensees;

     (2)  Updating requirements for applications, extraordinary reporting requirements, change in control of licensee, and criminal history record checks; and

     (3)  Updating various definitions.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.

     Your Committee finds that this measure makes various updates to clarify and strengthen Hawaii's Money Transmitters Act, including clarifying permissible investment requirements for money transmitter licensees; updating requirements for applications, extraordinary reporting requirements, change in control of licensee, and criminal history record checks; improving licensee compliance; enhancing the Division of Financial Institutions' ability to effectively administer the money transmitters law; ensuring the law is more clearly applicable to new technology and creative payment options; and enhancing consumer protection by strengthening requirements for background information on persons associated with a money transmitter licensee.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 949, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

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GILBERT S.C. KEITH-AGARAN, Chair