STAND. COM. REP. NO. 3481

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1882

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

 

Sir:

 

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 1882, 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:

 

     (1)  Clarify the powers and duties of nondepository trust companies;

 

     (2)  Amend the yearly assessment on nondepository trust companies by basing its calculation on total assets under management; and

 

     (3)  Establish a paid-in capital and surplus requirement for chartering nondepository trust companies.

 

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs and CSI Trust Company.

 

     Your Committee finds that nondepository trust companies provide fiduciary oversight for consumers who do not have friends or family members to manage their assets or whose assets do not qualify for asset management by banks or large investment firms.  This measure establishes an assessment structure that is appropriate to supervise and examine nondepository trust companies, which can provide a secure alternative to kupuna and other individuals unserved or underserved in Hawaii's community.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the duplicative definition of "assets under management" that would have been inserted into section 412:8-101, Hawaii Revised Statutes, as the term is already defined in section 3 of the measure;

 

     (2)  Inserting an effective date of July 1, 2020; and

 

     (3)  Making technical, nonsubstantive amendments for purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1882, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1882, 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, Consumer Protection, and Health,

 

 

 

________________________________

ROSALYN H. BAKER, Chair