Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1125
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 1125 entitled: 


begs leave to report as follows:

     The purpose of this bill is to correct certain sections of
the Code of Financial Institutions which were inadvertently not
changed with the adoption of prior amendments to the Code.

     This bill amends the definition of "Hawaii financial
institution" and provisions relating to the purchase of failing
institutions, to conform to 1996 amendments made to the
interstate banking and branching laws.  In addition, this measure
amends procedures for the relocation of an agency, branch, or
representative office of a foreign bank, and for the voluntary
liquidation and dissolution of credit unions, to be consistent
with procedures required for other financial institutions.

     The Commissioner of Financial Institutions (Commissioner) of
the Department of Commerce and Consumer Affairs testified in
support of this housekeeping bill, and requested an amendment to
accommodate certain nondepository financial services loan
companies with fiscal year ends which differ from the calendar or
June 30 year end.  

     Your Committee has amended the bill, as follows:

                                 STAND. COM. REP. NO. 1231
                                 Page 2

     (1) Providing for financial statements to be filed by a
nondepository financial services loan company as of the last day
of the sixth month and the last day of the twelfth month of each
fiscal or calendar year; and

     (2) Making technical, nonsubstantive amendments for purposes
of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1125, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1125, H.D. 1, and be placed on the calendar for Third Reading.

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

                                   RON MENOR, Chair