HOUSE OF REPRESENTATIVES

H.C.R. NO.

90

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

REQUESTING THE AUDITOR TO CONDUCT A SUNRISE REVIEW OF THE REGULATION OF MONEY TRANSMITTERS.

 

WHEREAS, money transmitter businesses may be used to launder the proceeds of drug, gambling, prostitution, and other illegal activities, and to move terrorist funds throughout the world; and

WHEREAS, appropriate regulation of money transmitters would make it less likely that these businesses are used to further unlawful ends, and would offer greater protection to consumers who use money transmitter services; and

WHEREAS, the Legislature finds that money transmitters are not presently regulated in Hawaii, and it cannot even be determined how many money transmitters are operating in the State; and

WHEREAS, House Bill No. 2428 was introduced during the Regular Session of 2004 to regulate money transmitters; and

WHEREAS, section 26H-6, Hawaii Revised Statutes, requires the Legislature, by concurrent resolution, to request a State Auditor analysis of any new regulatory measure being considered for enactment that, if passed, would subject an unregulated profession or vocation to licensing or other regulatory control; and

WHEREAS, if regulated, money transmitters could become subject to comprehensive provisions governing licensing, solvency requirements, business practices, state regulatory powers, administrative sanctions, and criminal penalties; and

Whereas, the consuming public at large will be affected if the cost of using the services of money transmitters increases because of regulation; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, the Senate concurring, that the Auditor is requested to perform a sunrise review of the regulation of money transmitters as provided for in House Bill No. 2428, as introduced during the Regular Session of 2004; and

BE IT FURTHER RESOLVED that the State Auditor, in addition to any other areas required by statute, is requested to address the following areas:

(1) The impact of regulation on the money transmitter industry;

(2) The impact of regulation on the consumer;

(3) The impact of regulation on the criminal justice system's efforts to deter criminal activities related to money transmitters;

(4) An assessment of the Uniform Money Services Act and its effect if adopted in Hawaii; and

(5) Federal laws related to money transmitters and the issue of federal preemption;

and

BE IT FURTHER RESOLVED that the State Auditor is requested to report its findings and recommendations to the Legislature no later than 20 days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the State Auditor and to the Director of Commerce and Consumer Affairs.

 

 

 

OFFERED BY:

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