HOUSE OF REPRESENTATIVES	H.C.R. NO.	41
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

requesting the auditor to conduct a sunrise analysis of THE REGULATION OF virtual currency business activities.

     WHEREAS, virtual currency is an electronic form of value that depends upon the market and is not backed by the federal government; and

     WHEREAS, consumer interest in virtual currency arises from its several advantages over real currencies; specifically, virtual currency is safer from computer hacking, often cheaper and faster, and has finality of payment; and

     WHEREAS, virtual currencies serve legitimate purposes and can be purchased, sold, and exchanged with other types of virtual currencies or real currencies; and

     WHEREAS, in the absence of any overarching federal payments regulatory framework, some states are currently examining ways to regulate virtual currencies; and

     WHEREAS, the Uniform Law Commission has drafted a model act, as embodied in both S.B. No. 2129 and part I of H.B. No. 2257 H.D. 1, introduced during the Regular Session of 2018, to harmonize state virtual currency laws to the extent possible; and

     WHEREAS, the model act regulates only virtual currency business activity, which includes services for the exchange, transfer, and custody of virtual currencies by a customer-facing intermediary; and

     WHEREAS, section 26H-6, Hawaii Revised Statutes, requires that:

New regulatory measures being considered for enactment that, if enacted, would subject unregulated professions and vocations to licensing or other regulatory controls shall be referred to the auditor for analysis.  Referral shall be by concurrent resolution that identifies a specific legislative bill to be analyzed . . .

now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2018, the Senate concurring, that the Auditor is requested to conduct a sunrise analysis of the regulation of virtual currency business activities as set forth in S.B. No. 2129 and part I of H.B. No. 2257 H.D. 1, which were introduced during the Regular Session of 2018; and

     BE IT FURTHER RESOLVED that the Auditor is further requested to submit a report of findings and recommendations, including any proposed legislation, no later than twenty days prior to the convening of the Regular Session of 2019; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and the Director of Commerce and Consumer Affairs.

OFFERED BY:

_____________________________

Report Title: 

Auditor; Sunrise Analysis; Virtual Currency Business