STAND. COM. REP. NO. 1019
RE: H.B. No. 943
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 943, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO NONDEPOSITORY TRUSTS,"
begs leave to report as follows:
The purpose and intent of this measure is to establish provisions concerning nondepository trust companies, including powers and duties, yearly assessment calculations, and paid-in-capital and surplus requirements.
Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs.
Your Committee finds that there is a growing "gap" group of consumers in Hawaii who need assistance managing their assets but do not meet the customer criteria for asset management services by banks or large investment firms, as their home may be their primary source of wealth. These consumers include kupuna, individuals who have a mental or physical impairment, individuals who are a ward of the State, or those who otherwise do not have a qualified or trusted family member or friend to help them manage their finances. Nondepository trust companies serve as fiduciaries in the administration and management of assets and operate similarly to a bank trust department, but do not take deposits or make loans. This measure will enable nondepository trust companies to serve this "gap" group of consumers and establishes the appropriate fee structure based on the fiduciary activity and risk profile of nondepository trust companies.
Your Committee has amended this measure by:
(1) Inserting language authorizing the Department of Commerce and Consumer Affairs Division of Financial Institutions to expend $4,000 of the fees collected to administer the nondepository trust company program established by this measure;
(2) Inserting an effective date of July 1, 2021; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
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 H.B. No. 943, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 943, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
ROSALYN H. BAKER, Chair