STAND. COM. REP. NO. 1082

Honolulu, Hawaii

, 2001

RE: H.B. No. 583

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 583, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE CODE OF FINANCIAL INSTITUTIONS,"

begs leave to report as follows:

The purpose of this measure is to amend the Code of Financial Institutions (Code) for purposes of clarity and consistency.

The Commissioner of Financial Institutions (Commissioner) testified in support of this measure.

Prior amendments to the Code failed to include or are inadequate or inaccurate with respect to certain regulatory requirements imposed on Hawaii financial institutions. Accordingly, this measure:

(1) Establishes expedited application procedures for the organization of a Hawaii financial institution to prevent the failure, or due to the insolvency, of an existing financial institution;

(2) Clarifies the Commissioner's authority to subpoena witnesses pursuant to an investigation;

(3) Clarifies the basis for the removal of an institution-affiliated party from office or employment with a Hawaii financial institution and for the revocation or suspension of an institution's charter or license;

(4) Removes language from the Code that restricts the extent to which Hawaii financial institutions may invest in obligations of the State;

(5) Conforms certain application procedures for foreign banks to procedures imposed on other financial institutions and clarifies other application requirements for foreign banks; and

(6) Makes other housekeeping amendments to the Code.

Your Committee has amended this measure by replacing its contents with the language of a similar measure, S.B. No. 1059, S.D. 1. As amended, this measure:

(1) Establishes fees for public requests to search, review, and segregate the Division of Financial Institution's records that include charges based upon actual time expended by division staff and amounts charged to the division by outside entities assisting with the request;

(2) Becomes effective upon its approval, rather than on July 1, 2001; and

(3) Reflects preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 583, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 583, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair