STAND. COM. REP. NO. 3838

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 Judiciary, to which was referred H.B. No. 2113, H.D. 2, S.D. 1, 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 Division of Financial Institutions.

Your Committee finds that existing law requires each key individual of a money transmitter to submit to a state and federal criminal background review. Hawai‘i became a reporter to the national criminal background database approximately seven years ago and since then, in the State's review of parallel state and federal criminal background checks, no discrepancies on disqualifying crimes have been found. The Nationwide Multistate Licensing System and Registry provides information-sharing among state regulators to enhance consumer protection and is a cloud-based system that gives state agencies up-to-date criminal history records from the Federal Bureau of Investigations. Accordingly, this measure will allow an applicant to only submit to a federal criminal background check, which will eliminate unnecessary regulatory burden and streamline the review of applicants.

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. 2113, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

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KARL RHOADS, Chair