STAND. COM. REP. NO. 1940

Honolulu, Hawaii

RE: H.B. No. 1163

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 1163, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SAVINGS PROMOTION CONTESTS,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize a financial institution that is a depository institution to conduct savings promotion or prize-linked savings contests in which its account holders are contestants.

Your Committee received testimony in support of this measure from the Hawaii Credit Union League and Hawaiian Community Assets. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that Hawaii's prohibition against gambling prevents financial institutions in the State from offering incentives in the form of prizes that can be won by customers depositing funds for the purpose of saving. Your Committee further finds that authorizing savings promotions or prized-linked savings contests will encourage customers to build personal savings.

Your Committee has amended this measure by removing language requiring the interest rate on a savings promotion or on prize-linked savings accounts to be lower than the interest rate associated with a comparable account.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1163, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1163, H.D. 1, S.D. 2.

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

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KARL RHOADS, Chair