STAND.
COM. REP. NO. 1510
Honolulu, Hawaii
, 2021
RE: S.B. No. 973
S.D. 1
H.D. 2
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 973, S.D. 1, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HAWAII MONEY TRANSMITTER ACT,"
begs leave to report as follows:
The purpose of this measure is to amend the Hawaii Money
Transmitters Act by:
(1) Incorporating definitions of key terms provided in
the Model Money Services Business Law published by the Conference of State Bank
Supervisors;
(2) Requiring an applicant for a money transmitter
license to submit information concerning any bankruptcy or receivership proceedings;
(3) Extending the period of an applicant's litigation
and criminal conviction history review from five to ten years from the date of
the application; and
(4) Clarifying the authority of the Commissioner of Financial
Institutions to examine and investigate licensees or authorized delegates of
licensees and participate in nationwide protocols for licensing cooperation and
coordination among state regulators.
Your Committee finds
that the money transmission industry has evolved significantly in the fifteen
years since the enactment of Hawaii's Money Transmitters Act. The instantaneous global money transmission
activity today necessitates additional oversight of money transmitters to
provide appropriate consumer protection. This measure ensures that Hawaii can work
alongside a network of states to enable timely, coordinated, and efficient
regulation of trans-global, regional, and single-state money transmission
companies to provide financial stability and economic growth, while also
protecting consumers.
Your
Committee has amended this measure by changing the effective date to January 1,
2050, to encourage further discussion.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 973, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 973, S.D. 1, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ AARON LING JOHANSON, Chair |
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