Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1326

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 1326 entitled: 


begs leave to report as follows:

     The purpose of this measure is to facilitate lending from
sources outside of the State by eliminating certain registration
and licensing requirements for foreign lenders.

     The Commissioner of Financial Institutions (Commissioner)
presented testimony in favor of the measure.

     Currently, foreign lenders operating in this State who seek
an exemption from the requirements of the Code of Financial
Institutions, the Insurance Code, the Hawaii Business Corporation
Act, and the laws relating to income tax, general excise tax, and
the tax on banks and financial corporations, are required to file
a statement with the Commissioner and pay an annual registration
fee.  These lenders are also subject to licensing and
registration requirements for mortgage brokers and solicitors and
real estate collection servicing agents.  

     This measure repeals the filing and fee requirements and
exempts qualified foreign lenders from the professional and
vocational licensing and registration requirements.  Your
Committee finds that this measure will encourage and promote
lending from sources outside the State by reducing the time,

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expense, and administrative work foreign lenders must undertake
in order to operate in this State.

     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. 1326 and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

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

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair

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