STAND. COM. REP. NO. 1692

 

Honolulu, Hawaii

                

 

RE:    H.B. No. 1192

       H.D. 1

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

 

Sir:

 

     Your Committees on Ways and Means and Judiciary, to which was referred H.B. No. 1192, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to establish a small dollar installment loan program that offers appropriate consumer protections.

 

     More specifically, this measure:

 

     (1)  Establishes a framework and licensing system for an installment loan program; and

 

     (2)  Repeals the statutory authorization for deferred deposit transactions in the State on January 1, 2022.

 

     Your Committees received written comments in support of this measure from the Department of Commerce and Consumer Affairs.

 

     Your Committees received written comments in opposition to this measure from Dollar Financial Group.

 

     Your Committees received written comments on this measure from the Hawaii Financial Services Association.

 

     Your Committees find that consumer protections provided by this measure will ensure that borrowers may obtain loans on reasonable terms, avoid harmful lending practices, and meet basic living expenses.

 

     Your Committees have amended this measure by:

 

     (1)  Amending the definition of "interest", as suggested in testimony from the Department of Commerce and Consumer Affairs, so that the definition is consistent with the definition used in other states that regulate similar installment loan businesses;

 

     (2)  Including clarifying language regarding the annual renewal fees for installment lenders, as also suggested in testimony from the Department of Commerce and Consumer Affairs;

 

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

 

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

 

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1192, H.D. 1, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 1192, H.D. 1, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

 

________________________________

KARL RHOADS, Chair

 

________________________________

DONOVAN M. DELA CRUZ, Chair