STAND. COM. REP. NO. 381

Honolulu, Hawaii

RE: S.B. No. 1097

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1097 entitled:

"A BILL FOR AN ACT RELATING TO NONDEPOSITORY TRUSTS,"

begs leave to report as follows:

The purpose and intent of this measure is to establish provisions to allow nondepository trust companies to assist certain individuals with asset management services.

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

Your Committee finds that there is a growing gap of consumers in Hawaii who need assistance with managing their assets but do not qualify for asset management services by banks or large investment firms, as their home may be their primary source of wealth. This measure will allow nondepository trust companies to serve as fiduciaries in the administration and management of assets for this gap group, to be licensed, supervised, and examined by the Department of Commerce and Consumer Affairs Division of Financial Institutions.

Your Committee has amended this measure by 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 and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1097, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1097, S.D. 1, and be referred to your Committee on Ways and Means.

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

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ROSALYN H. BAKER, Chair