STAND. COM. REP. NO. 3343

Honolulu, Hawaii

RE: H.B. No. 2113

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 2113, H.D. 2, 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 minimize regulatory burden and eliminate redundancy by permitting money transmitter applicants to submit to either a state or federal criminal history record check, rather than both.

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

Your Committee finds that existing law requires each key individual of a money transmitter to submit to both a state and federal criminal background review. Hawaii became a reporter to the national criminal history background database approximately seven years ago, and since that time, the Division of Financial Institutions has not found any discrepancies for disqualifying crimes when both a state and federal criminal background review is conducted. Accordingly, this measure will streamline the administrative requirements for applicants, and reduce the time it takes to process applications, by allowing the applicant to only submit to either a federal or state criminal background review.

Your Committee has amended this measure by inserting an effective date of July 1, 2022.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2113, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2113, H.D. 2, S.D. 1, and be referred to your Committee on Judiciary.

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

________________________________

ROSALYN H. BAKER, Chair