STAND. COM. REP. NO.1050

Honolulu, Hawaii

, 2001

RE: S.B. No. 840

S.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 840, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FINANCIAL INSTITUTIONS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Reduce from $2,500,000 to $2,000,000, the tax revenue from banks and other financial institutions that is allocated to the Division of Financial Institutions of the Department of Commerce and Consumer Affairs (Division); and

(2) Eliminate the requirement that financial institutions publish their statements of assets and liabilities in the newspaper.

Testimony in support of this measure was received from the Division, Hawaii Bankers Association, and Hawaii Financial Services Association.

Your Committee finds that despite the reduction in revenues, $2,000,000 would provide sufficient funds to support the present annual budget of the Division.

Your Committee also finds that under Hawaii's law, national banks, federally chartered thrift institutions, and out-of-state banks are not required to publish statements of assets and liabilities. The law applies only to financial institutions chartered or licensed in Hawaii, and is unnecessary because more comprehensive financial information is readily available on federal government web sites.

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. 840, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

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

____________________________

KENNETH T. HIRAKI, Chair