THE HOUSE OF REPRESENTATIVES

H.C.R. NO.

90

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

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

 

WHEREAS, the business of transmitting money has a long history in our country, from which immigrants from all parts of the world sent money home, to sustain their families; and

WHEREAS, money transmitting businesses provide a vital service in our society by helping families, rescuing travelers in emergencies, keeping businesses operating smoothly, and providing emergency funds to family and friends for numerous other reasons; and

WHEREAS, the business of money transmission has roots deep in the history of all immigrant peoples; and

WHEREAS, for the recipients, remittances from hardworking immigrants to families in the mother country are not just a lifeline, but a matter of survival; and

WHEREAS, many remittances to families abroad are in small amounts and the result of frugal living; and

WHEREAS, there have been some recent indications that money transmitters may have been used in some cases to launder the proceeds of drug trafficking, gambling, and other illegal activities, and to move terrorist funds throughout the world; and

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

WHEREAS, money transmitters are not regulated in Hawaii, so that it cannot 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; and

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

(1) The impact of regulation on the money transmitting businesses;

(2) The impact of regulation on those sending money and the recipients of these funds;

(3) The impact of regulation on the criminal justice system;

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

(5) An assessment of House Bill No. 2428 and its effect, if it is adopted in Hawaii; and

(6) 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.