HOUSE OF REPRESENTATIVES

H.B. NO.

2499

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO FINANCIAL INSTITUTIONS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 412:2-105, Hawaii Revised Statutes, is amended to read as follows:

     "§412:2-105  Fees [and], assessments[.], and fines.  (a)  The commissioner [may charge an examination fee based upon the cost per hour per examiner for all financial institutions examined by the commissioner or the commissioner's staff.  Effective July 1, 1995, the hourly fee shall be $40.  After July 1, 1996, the ] shall collect fees as follows:

     (1)  A nonrefundable fee of $10,000 for review and preliminary approval by the commissioner for the organization of a bank, savings bank, savings and loan association, trust company, or depository financial services loan company.  In addition, the applicant shall be charged a fee of $60 per employee hour in excess of one hundred sixty hours for the review of the application and attendant investigations.  The aggregate fee shall not exceed $20,000.  The additional fee will be billed and shall be paid before preliminary approval is provided;

     (2)  A nonrefundable fee of $2,500 for the review and approval by the commissioner of the final application for a charter or license to engage in the business of a bank, savings bank, savings and loan association, trust company, or depository financial services loan company;

     (3)  A nonrefundable fee of $10,000 for the review and approval by the commissioner of an application for a new nondepository financial services loan company.  In addition, the applicant shall be charged a fee of $60 per employee hour in excess of one hundred sixty hours for the review of the application and attendant investigations.  The aggregate fee shall not exceed $20,000.  The additional fee will be billed and shall be paid before the application is approved;

     (4)  $5,000 for the review and approval by the commissioner for a conversion to a state chartered institution;

     (5)  $1,000 for the review and approval by the commissioner to establish a new branch for a financial institution;

     (6)  A nonrefundable fee of $10,000 for the review and approval by the commissioner of a merger or consolidation.  In addition, the applicant shall be charged a fee of $60 per employee hour in excess of on hundred sixty hours for the review of the application and attendant investigations.  The aggregate fee shall not exceed $20,000.  The additional fee will be billed and must be paid before the approval is granted;

     (7)  $1,000 for the review and approval by the commissioner for the relocation of a principal office, branch, or agency;

     (8)  $200 for the review and approval by the commissioner for the opening or relocating an out-of-state branch or agency;

     (9)  $200 for the review and approval by the commissioner for the opening or relocating of a support facility;

    (10)  $1,000 for the review and approval by the commissioner for the issuance of preferred stock, decrease in authorized capital stock or par value of capital stock, or decrease in outstanding capital stock by the acquisition of the Hawaii stock financial institution's own shares pursuant to section 412:3-402(3) and (4);

    (11)  $2,000 for the review and approval by the commissioner for the acquisition by any bank, savings bank, or savings and loan association of any federal power pursuant to section 412:5-201, 412:6-201, 412:7-201, or 412:10-201;

    (12)  $2,000 for the review and approval by the commissioner for a bank to accept drafts or bills of exchange in an amount not exceeding at any time in the aggregate two hundred per cent of its capital and surplus pursuant to section 412:5-204;

    (13)  $5,000 for the review and approval by the commissioner for a bank to conduct a trust business through a subsidiary, division, or department of the bank pursuant to 412:5-205;

    (14)  $5,000 for the review and approval by the commissioner for a bank to conduct insurance activities pursuant to section 412:5-205.5;

    (15)  $5,000 for the review and approval by the commissioner for a bank to engage in securities activities pursuant to section 412:5-205.7;

    (16)  $2,000 for the review and approval by the commissioner for a bank to comply with lending limits applicable to national banking associations pursuant to section 412:5-302;

    (17)  $2,000 for the review and approval by the commissioner for a bank to exceed certain permitted investments pursuant to section 412:5-305(f) and (h);

    (18)  A nonrefundable fee of $10,000 for the review and approval by the commissioner for an intra-Pacific bank or intra-Pacific bank holding company to engage in business in the State pursuant to sections 412:5-401 and 412:5-402.  In addition, the applicant shall be charged a fee of $60 per employee hour in excess of one hundred sixty hours for the review of the application and attendant investigations.  The aggregate fee shall not exceed $20,000.  The additional fee will be billed and shall be paid before preliminary approval is provided;

    (19)  $5,000 for the review and approval by the commissioner for a bank to establish a corporation to engage in foreign or international banking and other foreign or international financial activities pursuant to section 412:5A-201;

    (20)  $1,000 for the review and approval by the commissioner for an extension of time to sell stock acquired and held by an international banking corporation to prevent loss pursuant to section 412:5A-210;

    (21)  $5,000 for the review and approval by the commissioner for the formation and ownership of a service corporation by a savings bank and approval of a service corporation to engage in certain activities pursuant to section 412:6-203;

    (22)  $5,000 for the review and approval by the commissioner  for a savings bank to acquire, establish, or hold the voting securities of an operating subsidiary pursuant to section 412:6-204;

    (23)  $2,000 for the review and approval by the commissioner for a savings bank to abide by the lending limits of the national banking association rather than state limits prescribed by section 412:6-303;

    (24)  $1000 for the review and approval by the commissioner for a bank, savings bank, savings and loan association, trust company, or depository financial services loan company to purchase, hold, convey, sell, or lease certain real or personal property in excess of stated limits pursuant to sections 412:5-305(f)(1) and (2), 412:6-306(f)(1) and (2), 412:7-306(f)(1) and (2), 412:8-301(f)(1) and (2), and 412:9-409(f)(1) and (2);

    (25)  $1,000 for the review and approval of the commissioner for an extension of the time by which a bank, savings bank, savings and loan association, or depository financial services loan company must sell or exchange real property that was acquired as security for loans or in the collection of debts pursuant to sections 412:5-305(f), 412:6-306(f), 412:7-306(g), and 412:9-409(f);

    (26)  $1,000 for the review and approval of the commissioner for an extension of time for a bank, savings bank, savings and loan association, or depository financial services loan company to sell stock acquired or purchased to save a loss on a preexisting debt secured by the stock pursuant to sections 412:5-305(g), 412:6-306(g)(6), 412:7-306(g)(6), and 412:9-409(g)(2);

    (27)  $1,000 for the review and approval of the commissioner for a savings bank to invest its own assets in residential properties in excess of two per cent of the savings bank's capital or an aggregate investment exceeding five per cent of the savings bank's capital and surplus pursuant to section 412:6-306(h);

    (28)  $5,000 for the review and approval by the commissioner for the formation of a service corporation by a savings and loan association pursuant to section 412:7-203;

    (29)  $1,000 for the review and approval by the commissioner for banks and other trust companies in which a trust company may deposit its required reserves pursuant to section 412:8-202;

    (30)  $2,000 for the review and approval by the commissioner of an agreement between a trust company and any bank or national banking association to carry on trust services in the bank's or national banking association's name pursuant to section 412:8-204;

    (31)  $100 for the review and approval by the commissioner for the annual licensing of a financial services loan company;

    (32)  $2,000 for the review and approval by the commissioner for a financial services loan company to sell or refer, and collect premiums or fees for the sale or referral of, specified products and services pursuant to section 412:9-201(a);

    (33)  $2,000 for the review and approval by the commissioner for a financial services loan company to issue standby letters of credit pursuant to 412:9-201(c);

    (34)  $5,000 for the review and approval by the commissioner for depository financial services loan companies to sell fixed rate annuities and collect premiums and fees for the sale or referral of those fixed rate annuities and the imposition of conditions and restrictions that are in the public interest pursuant to section 412:9-400;

    (35)  $5,000 for the review and approval of the commissioner for a depository financial services loan company to deposit its cash reserves in United States branches of non-United States banks pursuant to section 412:9-401(b);

    (36)  $2,000 for the review and approval by the commissioner of irrevocable lines of credit of one year or more used as reserves for depository financial services loan companies pursuant to section 412:9-401(c);

    (37)  $5,000 for the review and approval by the commissioner for one or more depository financial services loan companies to form and own a service corporation pursuant to section 412:9-403;

    (38)  $1,000 for the review and approval by the commissioner for a proposed change in a credit union's field of membership pursuant to section 412:10-109(h);

    (39)  A nonrefundable fee of $10,000 for the review and approval by the commissioner of an application for an interstate merger transaction submitted by an out-of-state bank pursuant to section 412:12-104.  In addition, the applicant shall be charged a fee of $60 per employee hour in excess of one hundred sixty hours for the review of the application and attendant investigations.  The aggregate fee shall not exceed $20,000.  The additional fee will be billed and shall be paid before the approval is granted;

    (40)  $1,000 for the review and approval by the commissioner of an application for a charter of a credit union; and

    (41)  $100 for the review and approval by the commissioner of a request to use of the terms listed in section 412:1-104.

     (b)  The commissioner may [establish,] increase[,] or decrease[, or repeal the] any hourly fee established in subsection (a), and may establish, increase, decrease, or repeal any other fee, when necessary pursuant to rules adopted in accordance with chapter 91.

     [(b)] (c)  In addition to the examination fee, the commissioner [may] shall charge any financial institution examined or investigated by the commissioner or the commissioner's staff, additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination.

     [(c)] (d)  The commissioner shall bill the affected financial institution for examination fees and expenses as soon as feasible after the close of the examination or investigation.  The affected financial institution shall pay the division of financial institutions within thirty days following the billing.  All such payments shall be deposited to the compliance resolution fund established pursuant to section 26-9(o).  All disputes relating to these billings between the affected financial institution and the commissioner shall be resolved in accordance with the procedures for contested cases under chapter 91.

     [(d)  The commissioner, by rules adopted in accordance with chapter 91, may set reasonable fee amounts to be collected by the division in connection with its regulatory functions, including, without limitation, any fees for renewals, applications, licenses, and charters.  Unless otherwise provided by statute, all such fees shall be deposited into the compliance resolution fund established pursuant to section 26-9(o).]

     (e)  A Hawaii financial institution that fails to make a payment required by this section shall be subject to an administrative fine of not more than $250 per day for each day it is in violation of this section[, which fine, together with the amount due under this section, may be recovered pursuant to section 412:2-611 and shall be deposited into the compliance resolution fund established pursuant to section 26-9(o)]."

     SECTION 2.  Section 412:2-109, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  The commissioner may [annually] charge each financial institution subject to examination by the commissioner [the sum of $500 plus $100 for each office, agency, and branch office maintained by the financial institution, payment of which shall be made] an annual fee which shall be paid before July 2 [and thereafter credited to the compliance resolution fund.] of each year and shall be as follows:

     (1)  $5,000 for financial institutions with assets of at least $500,000 but less than $10,000,000 for the previous calendar year ending December 31;

     (2)  $7,500 for financial institutions with assets of at least $10,000,000 but less than $100,000,000 for the previous calendar year ending December 31;

     (3)  $10,000 for financial institutions with assets of at least $100,000,000 but less than $750,000,000 for the previous calendar year ending December 31;

     (4)  $12,500 for financial institutions with assets of at least $750,000,000 but less than $5,000,000,000 for the previous calendar year ending December 31; and

     (5)  $15,000 for financial institutions with assets of at least $5,000,000,000 for the previous calendar year ending December 31.

The commissioner may establish, increase, decrease, or repeal [this fee] any or all of these fees when necessary pursuant to rules adopted in accordance with chapter 91."

     SECTION 3.  Section 412:2-508, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Applications for a provisional approval shall be filed with the commissioner, and shall provide the information required by this chapter for preliminary approval to organize the type of financial institution that will result from the merger or acquisition under this part.  The applicant shall also furnish such other information as the commissioner may require, and an application fee [as established by the commissioner.] pursuant to section 412:2-105."

     SECTION 4.  Section 412:3-102, Hawaii Revised Statutes, is amended to read as follows:

     "§412:3-102  Change of name.  To change its name, a Hawaii financial institution shall file with the commissioner an application [with the commissioner and pay the fees as the commissioner may establish.] accompanied by an application fee pursuant to section 412:2-105.  The application shall be approved if the commissioner is satisfied that the new name complies with this chapter and chapter 414.  Any change of name of a stock financial institution pursuant to this section shall be effected in accordance with chapter 414.  Any change of name shall not affect a financial institution's rights, liabilities, or obligations existing prior to the effective date thereof, and no documents of transfer shall be necessary to preserve the rights, liabilities, or obligations; provided that the commissioner may require notice to be given to the public and other governmental agencies."

     SECTION 5.  Section 412:3-212, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  If the commissioner is satisfied that the financial institution and, if applicable, its holding company have fulfilled all the requirements of law and the grounds for preliminary approval, and that the financial institution is qualified to engage in the business of a financial institution, the commissioner shall issue a written decision and order approving the application.  The order may restrict the payment of dividends for a period of up to three years, and may contain any other conditions and restrictions on the financial institution that are in the public interest, including [but not limited to] the divestment of any contractual arrangement with an affiliate or subsidiary involving any type of business not permitted under this chapter.  Upon the satisfactory fulfillment by the financial institution and, if applicable, its holding company of the conditions in the written decision and order approving the application and upon the payment by a depository financial services loan company of [an] the initial license fee [established by rule pursuant to chapter 91,] pursuant to section 412:2-105, the commissioner shall issue to the financial institution a charter or license to engage in the business of a financial institution under this chapter."

     SECTION 6.  Section 412:3-301, Hawaii Revised Statutes is amended by amending subsection (c) to read as follows:

     "(c)  The application shall be submitted on a form prescribed by the commissioner[.  The application] and shall be accompanied by an application fee [of $5,000, or such greater amount as the commissioner shall establish by rule pursuant to chapter 91.  The application fee shall not be refundable.] pursuant to section 412:2-105."

     SECTION 7.  Section 412:3-304, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  If the commissioner is satisfied that the applicant has fulfilled all the requirements of law and is qualified to engage in the business of a nondepository financial services loan company, the commissioner shall issue a written decision and order approving the application.  Upon the approval of the application, the payment of [an initial] the license fee [established by rule pursuant to chapter 91,] pursuant to section 412:2-105, and, if applicable, upon providing satisfactory evidence to the commissioner of compliance with the requirements of chapter 414 relating to foreign corporations, the commissioner shall issue to the applicant a license to engage in the business of a nondepository financial services loan company under this chapter."

     SECTION 8.  Section 412:3-503, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  The institution shall file an application with the commissioner.  The application shall be in a form prescribed by the commissioner and shall be accompanied by [a] an application fee [the amount of which shall be established by rule.] pursuant to section 412:2-105.  The application shall contain the following information:

     (1)  The name of the financial institution;

     (2)  The specific location of the proposed site of the principal office, branch, or agency;

     (3)  The anticipated opening date and, if open for a specified period, the end of such period;

     (4)  The nature of the business or transactions intended to be carried on at the location;

     (5)  Facts showing the necessity or justification for the proposed site and that there is a reasonable assurance of sufficient volume of business so that opening and maintaining the proposed business location will not jeopardize the solvency of the financial institution; and

     (6)  Any other information that the commissioner may require.

     (c)  If after appropriate examination and investigation, the commissioner is satisfied that the proposed opening or relocation is justified and proper, the commissioner shall approve the application in writing, with any conditions as the commissioner deems appropriate.  Upon payment by a financial services loan company of the initial license fee for the new branch or agency, or the reissuance of license fee for the relocated office [as established by rule pursuant to chapter 91,] pursuant to section 412:2-105, the commissioner shall issue a license for the new or relocated office."

     SECTION 9.  Section 412:3-505, Hawaii Revised Statutes, is amended to read as follows:

     "§412:3-505  Opening or relocating out-of-state branch or agency.  With the commissioner's prior written approval, a Hawaii financial institution may open or relocate a branch or agency that is outside of this State, including [but not limited to] any state, possession, or territory of the United States or any foreign country.  An application to open or relocate an out-of-state branch or agency shall be filed in accordance with section 412:3503[, and the commissioner may assess the financial institution any additional expenses as may be reasonably necessary to consider the application.] and be accompanied by a fee pursuant to section 412:2-105."

     SECTION 10.  Section 412:3-506, Hawaii Revised Statutes, is amended to read as follows:

     "§412:3-506  Opening or relocating a support facility.  A Hawaii financial institution that opens or relocates a support facility shall within thirty days thereafter submit a letter to the commissioner [containing the following information:] including:

     (1)  The location of the support facility;

     (2)  A description of the type of functions [which] the support facility will perform; [and]

     (3)  The date or anticipated date of opening or relocation[.]; and

     (4)  The fee pursuant to section 412:2-105."

     SECTION 11.  Section 412:3-603, Hawaii Revised Statutes, is amended to read as follows:

     "§412:3-603  Procedure for applications pursuant to this part.  Whenever the written approval of the commissioner is required with respect to any transaction covered by this part, the following procedures shall apply:

     (1)  An application for approval by the commissioner pursuant to this part shall be on a form prescribed by the commissioner and shall contain any information, data, and records as the commissioner may require[.], and shall be accompanied by a nonrefundable application fee pursuant to section 412:2-105.  As far as possible consistent with the effective discharge of the commissioner's responsibilities, the commissioner shall prescribe the use of forms currently prescribed by the appropriate federal regulatory agency of financial institutions and financial institution holding companies for identical or similar types of transactions[.  The application shall be accompanied by an application fee established by the commissioner pursuant to section 412:2-105.  The application fee shall not be refundable];

     (2)  If any material change occurs in the facts set forth in an application, or if for any other reason the applicant desires to amend the application, an amendment setting forth any change, together with copies of all documents and other material relevant to the change, shall be filed with the commissioner.  Within twenty days after receiving an application or any amendment thereto, the commissioner may request any additional information necessary in deciding whether to approve a proposed transaction pursuant to this part.  The applicant shall submit the additional information in a reasonable time thereafter, as may be specified by the commissioner;

     (3)  If the commissioner would approve a plan of conversion, merger, or consolidation, an acquisition of assets or assumption of liabilities, an acquisition of control, or a voluntary cessation of business or voluntary dissolution, but on terms different than contained in the application, the commissioner may give notice to the applicant of the nature of the changes which would be approved, and the applicant may submit an amended application;

     (4)  If the commissioner intends to disapprove an application, the commissioner shall deliver to the applicant a written notice of the intent to disapprove.  Within ten days after receipt of the commissioner's notice of intent to disapprove an application, the applicant may request an administrative hearing, to be held in accordance with chapter 91.  If no request for a hearing is made, the commissioner's disapproval shall become final.  If after the hearing the commissioner finally disapproves the application, the applicant may, within thirty days of the date of the final decision, appeal to the circuit court as provided in chapter 91;

     (5)  Notwithstanding any other provision of this part, any complete application which is not approved or denied by the commissioner within a period of sixty days after the application is filed with the commissioner or, if the applicant consents to an extension of the period within which the commissioner may act, within the extended period, shall be deemed to be approved by the commissioner as of the first day after the period of sixty days or the extended period.  If the commissioner gives notice of an informational and comment proceeding on the application, the sixty-day period shall be extended to a date as may be fixed by order of the commissioner.  For purposes of this section, an application is deemed to be filed with the commissioner at the time when the complete application, including any amendments or supplements, containing all of the information in the form required by the commissioner, is received and accepted by the commissioner; and

     (6)  Any applicant submitting information to the commissioner pursuant to this part may request that the information, or any part thereof, be kept confidential.  The request shall be made in writing and shall set forth the specific items sought to be kept confidential and the reasons and authority for the confidential treatment.  The commissioner may, pursuant to a request or otherwise, determine that good cause exists to keep some or all of the information confidential, and shall keep the information confidential and not subject to public disclosure.  In connection with an application for the acquisition of control pursuant to section 412:3-612, the commissioner may release information to the affected financial institution or financial institution holding company with a directive that some or all of the information be kept confidential."

     SECTION 12.  Section 412:5-203, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  The bank shall file an application with the commissioner in a form approved by the commissioner.  The application shall be accompanied by a fee [the amount of which shall be prescribed by rule.] pursuant to section 412:2-105.  The application shall contain the following information concerning the proposed operating subsidiary:

     (1)  The name and date for commencement of operations;

     (2)  The specific location;

     (3)  The activities and nature of business;

     (4)  The ownership, amount, and nature of the investment; and

     (5)  Any other information that the commissioner may require."

     SECTION 13.  Section 412:5-205, Hawaii Revised Statutes is amended by amending subsection (b) to read as follows:

     "(b)  The bank shall file an application for such approval with the commissioner on a form prescribed by the commissioner, together with an application fee [of $5,000, or such greater amount as the commissioner shall establish, no part of which shall be refundable.] pursuant to section 412:2-105.  The application shall contain the following information:

     (1)  Appropriate board resolutions authorizing the establishment of a trust company, division, or department;

     (2)  Employment history, education, management experience, and other biographical information for all executive officers, trust officers, and managers of the trust company, division, or department;

     (3)  Proposed policies concerning common trust funds, overdrafts, disaster recovery plans, dividends, management of assets and liabilities, conflicts of interest, investments, and fee schedules.  The commissioner may consider any existing bank policies that will be adapted and [utilized] used for its trust business;

     (4)  A business plan and financial projections regarding profitability of the proposed trust business;

     (5)  Evidence that the bank has or will have the financial ability, responsibility, and experience to engage in the trust business; and

     (6)  Any other information [which] that the commissioner may require."

     SECTION 14.  Section 412:5-205.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The bank shall file an application for approval with the commissioner in a form prescribed by the commissioner.  The application shall be accompanied by a fee [the amount of which shall be prescribed by rule.] pursuant to section 412:2-105.  The application shall contain:

     (1)  A description of the activities to be conducted;

     (2)  The experience and qualifications of the proposed managers;

     (3)  The specific location where the activities will be conducted; and

     (4)  Any other information that the commissioner may require.

If the bank proposes to engage in the business of insurance through a subsidiary or affiliate, then the application shall also contain information regarding the experience and qualifications of the proposed executive officers and directors of the subsidiary or affiliate and the ownership, amount, and nature of the bank's investment in and advances to the subsidiary or affiliate.  Upon being satisfied that the application is complete, that the conduct of the insurance business will not affect the safety or soundness of the bank or harm the public interest, and that the bank and its subsidiary or affiliate, if applicable, have sufficient experience, qualifications, and financial capability to engage in the activities authorized by this section, the commissioner shall approve the application.  The commissioner may impose any terms and conditions which the commissioner considers necessary to protect the bank, the customers of the bank, and the public interest."

     SECTION 15.  Section 412:5-205.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The bank shall file an application for approval with the commissioner in a form prescribed by the commissioner[.  The application shall be] and accompanied by a fee [the amount of which shall be prescribed by rule.] pursuant to section 412:2-105.  The application shall contain:

     (1)  A description of the activities to be conducted;

     (2)  The experience and qualifications of the proposed managers;

     (3)  The specific location where the activities will be conducted; and

     (4)  Any other information that the commissioner may require.

If the bank proposes to engage in securities activities through a subsidiary or affiliate, then the application shall also contain information regarding the experience and qualifications of the proposed executive officers and directors of the subsidiary or affiliate and the ownership, amount, and nature of the bank's investment in and advances to the subsidiary or affiliate.  Upon being satisfied that the application is complete, that the conduct of the securities activities will not affect the safety or soundness of the bank or harm the public interest, and that the bank and its subsidiary or affiliate, if applicable, have sufficient experience, qualifications, and financial capability to engage in the activities authorized by this section, the commissioner shall approve the application.  The commissioner may impose any terms and conditions which the commissioner considers necessary to protect the bank, the customers of the bank, and the public interest."

     SECTION 16.  Section 412:6-201, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Any savings bank desiring to acquire any federal power shall file an application with the commissioner.  The application shall indicate the applicable federal statute, rule, regulation, interpretation, or court decision, the extent of the federal power desired, the reasons for the application, and any other information requested by the commissioner.  The commissioner may by rule prescribe the form of application [and application filing fees]."

     SECTION 17.  Section 412:9-102, Hawaii Revised Statutes is amended to read as follows:

     "§412:9-102  Annual license fee.  On or before December 31 of each year, each financial services loan company shall pay to the commissioner an annual license fee [of $50] pursuant to section 412:2-105 for each license that it holds for the ensuing year.  A financial services loan company whose application for a license was approved in December may pay to the commissioner the first annual license fee [of $50] for the ensuing year on or before the expiration of thirty days after receiving notice of the approval of the financial services loan company's application."

     SECTION 18.  Section 412:12-105, Hawaii Revised Statutes is amended by amending subsection (c) to read as follows:

     "(c)  An out-of-state bank desiring to establish and operate a branch or to acquire and operate a branch in this State pursuant to this section shall provide to the commissioner written notice of the proposed transaction not later than the date on which the bank applies to the responsible federal bank supervisory agency for approval to establish or acquire the branch.  The filing of the notice shall be accompanied by a nonrefundable filing fee [of $9,000 or a greater amount as the commissioner may establish by rule pursuant to chapter 91.  The filing fee shall be nonrefundable.] pursuant to section 412:2-105."

     SECTION 19.  Section 412:13-202, Hawaii Revised Statutes is amended to read as follows:

     "§412:13-202  Application to establish and maintain a branch or agency; contents.  [A foreign bank, in order to] To procure a license under this article [to establish and maintain] for the purpose of establishing and maintaining a Hawaii state branch or Hawaii state agency, a foreign bank shall submit an application to the commissioner, together with the application fee prescribed in section [412:13-206.] 412:2-105.  The application shall contain:

     (1)  The same information as required by the Board of Governors of the Federal Reserve System for an application to establish a branch or agency, as the case may be, in the United States;

     (2)  If applicable, a statement under oath appointing an agent in this State for receipt of service of process in accordance with section 414-437, if the license is granted; and

     (3)  Any additional information that the commissioner may require."

     SECTION 20.  Section 412:13-216, Hawaii Revised Statutes is amended by amending subsection (a) to read as follows:

     "(a)  The application for a license to establish and maintain a Hawaii representative office shall be in writing under oath and shall be in a form and contain any information [as] the commissioner may require by rule or order.  The application shall be accompanied by a nonrefundable application fee [of $1,500 or a greater amount as the commissioner may establish by rule.] pursuant to section 412:2-105."

     SECTION 21.  Section 412:13-206, Hawaii Revised Statutes is repealed.

     ["[§412:13-206]  Application fees.  Upon applying to the commissioner under this article for an initial license to establish and maintain a Hawaii state branch or Hawaii state agency, a foreign bank shall pay to the commissioner an application fee of $9,000 or a greater amount as the commissioner shall establish by rule pursuant to chapter 91.  For an application to establish additional branches or agencies, the foreign bank shall pay an application fee of $1,500 or a greater amount as may be established by rule.  For an application to amend a license, the foreign bank shall pay an application fee of $1,500 or a greater amount as may be established by rule.  All application fees shall be nonrefundable."]

     SECTION 22.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 23.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Financial Institutions; Fees

 

Description:

Adjusts regulatory fees for financial institutions to more accurately reflect today's economy.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.