THE SENATE	S.B. NO.	2772
TWENTY-NINTH LEGISLATURE, 2018		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MONEY TRANSMITTERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 489D-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The security device shall be in a form satisfactory to the commissioner and shall run to the State for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee relating to the receipt, handling, transmission, and payment of money or monetary value in connection with [the sale and issuance of payment instruments or transmission of] money[.] transmissions. In the case of a bond, the aggregate liability of the surety shall not exceed the principal sum of the bond. Claimants against the licensee may bring suit directly on the security device or the commissioner may bring suit on behalf of the claimants, either in one action or in successive actions."

SECTION 2. Section 489D-34, Hawaii Revised Statutes, is amended to read as follows:

"[[]§489D-34[] Rules. The commissioner may adopt] Powers of the commissioner. In addition to any other powers provided by law, the commissioner may:

(1) Adopt rules pursuant to chapter 91 to implement this chapter[.];

(2) Administer and enforce the provisions and requirements of this chapter;

(3) Issue declaratory rulings and informal nonbinding interpretations;

(4) Develop requirements for licensure;

(5) Process and investigate complaints, subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic communications;

(6) Investigate and conduct hearings, including contested proceedings under chapter 91, regarding any violation of this chapter, or any rule or order of, or agreement with, the commissioner;

(7) Create fact-finding committees that may make recommendations to the commissioner for the commissioner's deliberations;

(8) Require disclosure of relevant criminal history in accordance with this chapter and conduct criminal history record checks in accordance with chapter 846;

(9) Contract with or employ qualified persons who may be exempt from chapter 76, including investigators, examiners, auditors, and attorneys, to assist the commissioner in exercising the commissioner's powers and duties;

(10) Require that all revenues, fees, and fines collected by the commissioner under this chapter be deposited into the compliance resolution fund established pursuant to section 26-9(o);

(11) Revoke, suspend, or otherwise limit the license of any money transmitter for any violation of this chapter, or any rule or order of, or agreement with, the commissioner;

(12) Report any violation of this chapter or violation of federal or state law to the Consumer Financial Protection Bureau or other federal agency having jurisdiction over the licensee; and

(13) Do any and all things necessary or incidental to the exercise of the commissioner's power and duties."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

Report Title:

Money Transmitters; Commissioner of Financial Institutions; Powers; Bond; Security Device

Description:

Clarifies bond requirements for money transmitter licensees. Clarifies the powers of the commissioner of financial institutions relating to money transmitters. (SD1)

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