STAND. COM. REP. NO. 756

Honolulu, Hawaii

RE: S.B. No. 806

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 806 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 amend money transmitter licensure requirements by adding a credit report and extending personal background history from five years to ten years, which will enable the Division of Financial Institutions to join a compact of states that license money transmitters.

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

Your Committee finds that applications for a money transmitter license must be made through the Nationwide Multistate Licensing System, also referred to as NMLS, the sole nationwide platform that provides for information-sharing among regulators to increase efficiencies for regulatory jurisdictions and enhance consumer protection. A compact of twenty-one states have agreed to accept each other's findings on standardized key areas of the licensing process, which will promote greater efficiency and alleviate the regulatory burden for money transmitters applying for licenses in multiple states. This measure therefore enables Hawaii to join this compact of states with standardized licensing laws.

Your Committee has amended this measure by:

(1) Inserting language authorizing the Insurance Commissioner to conduct a financial responsibility review of the applicant as part of the licensing process; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 806, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 806, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair