CONFERENCE COMMITTEE REP. NO. 48

 

Honolulu, Hawaii

                 , 2021

 

RE:    S.B. No. 973

       S.D. 1

       H.D. 2

       C.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Sirs:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 973, S.D. 1, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO HAWAII MONEY TRANSMITTER ACT,"

 

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

 

     The purpose of this measure is to:

 

     (1)  Amend the Money Transmitters Act;

 

     (2)  Incorporate definitions of key terms provided in the Model Money Services Business Law;

 

     (3)  Add supporting documentation required to be submitted by an applicant for licensure;

 

     (4)  Extend the period of an applicant's litigation and criminal conviction history review from five years to ten years from the date of the application;

 

     (5)  Require an applicant to submit information concerning any bankruptcy or receivership proceedings; and

 

     (6)  Clarify the authority of the Commissioner of Financial Institutions to examine and investigate licensees and participate in nationwide protocols for licensing cooperation.

 

     Your Committee on Conference finds that the money transmission industry has evolved since the enactment of Hawaii's Money Transmitter Act in 2006.  The current fast-paced nature of money transmission and the increased innovation of financial technologies necessitates additional oversight of money transmitters to ensure appropriate consumer protection.  This measure adopts certain model act provisions to allow Hawaii to work alongside a network of states to enable timely, coordinated, and efficient regulation of trans-global, regional, and single-state money transmission companies to provide financial stability and better protect consumers.

 

     Your Committee on Conference has amended this measure by inserting an effective date of July 1, 2021.

 

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 973, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 973, S.D. 1, H.D. 2, C.D. 1.

 


Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

 

ON THE PART OF THE SENATE

 

____________________________

SEAN QUINLAN

Co-Chair

 

____________________________

ROSALYN H. BAKER

Chair

____________________________

AARON LING JOHANSON

Co-Chair

 

____________________________

KARL RHOADS

Co-Chair

____________________________

DANIEL HOLT

Co-Chair