STAND. COM. REP. NO. 818

Honolulu, Hawaii

RE: S.B. No. 1325

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1325 entitled:

"A BILL FOR AN ACT RELATING TO MONEY TRANSMITTERS MODERNIZATION ACT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Align the State's money transmitters law with provisions of the Model Money Transmitters Modernization Act; and

(2) Authorize the State to share resources, data, and technology tools with other states.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs. Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that the business of money transmitters has evolved with advances in financial technology. However, the State's existing laws regulating money transmitters have not kept pace with the advances in technology and provide insufficient consumer protection. This measure aligns the State's money transmitters law with the Model Money Transmitters Modernization Act, thus providing the benefit of a stronger multi-state system of financial regulation.

Your Committee has amended this measure by:

(1) Deleting the reference to the "Act" and inserting the appropriate Hawaii Revised Statutes chapter adopting the Model Money Transmitters Modernization Act;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1325, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1325, S.D. 1, and be placed on the calendar for Third Reading.

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

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JARRETT KEOHOKALOLE, Chair