Hawaii 2024 Regular Session

Hawaii House Bill HB2388 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HOUSE OF REPRESENTATIVES H.B. NO. 2388 THIRTY-SECOND LEGISLATURE, 2024 H.D. 1 STATE OF HAWAII ~~S.D. 1~~ A BILL FOR AN ACT RELATING TO MONEY TRANSMITTERS MODERNIZATION ACT. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
	1	+	HOUSE OF REPRESENTATIVES H.B. NO. 2388 THIRTY-SECOND LEGISLATURE, 2024 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO MONEY TRANSMITTERS MODERNIZATION ACT. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3		HOUSE OF REPRESENTATIVES H.B. NO. 2388
4	4		THIRTY-SECOND LEGISLATURE, 2024 H.D. 1
5		-	STATE OF HAWAII ~~S.D. 1~~
	5	+	STATE OF HAWAII
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7	7		HOUSE OF REPRESENTATIVES
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9	9		H.B. NO.
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11	11		2388
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13	13		THIRTY-SECOND LEGISLATURE, 2024
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15	15		H.D. 1
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17	17		STATE OF HAWAII
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19		-	~~S.D. 1~~
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31	31		A BILL FOR AN ACT
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37	37		RELATING TO MONEY TRANSMITTERS MODERNIZATION ACT.
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43	43		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47		-	SECTION 1. Section 489D-4, Hawaii Revised Statutes, is amended by amending the definition of "permissible investments" to read as follows: ""Permissible investments" means: (1) Cash; (2) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign; (3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, known as bankers' acceptances, that are eligible for purchase by member banks of the Federal Reserve System; (4) Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities; (5) Investment securities that are obligations of the United States, its agencies, or its instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or any political subdivision thereof; (6) Shares in a money market mutual fund, interest-bearing bills, notes, or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, mutual funds primarily composed of these securities, or a fund composed of one or more permissible investments as set forth in paragraphs (1) to (5); (7) Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange; (8) Receivables that are due to a licensee from its authorized delegates pursuant to a contract under section 489D-21, that are not past due or doubtful of collection; [or] (9) Receivables that are due to the licensee from its payment processors for debit or credit card transactions authorized by the licensee's customers for money transmission services obtained from the licensee; or [(9)] (10) Any other investments or security device approved by the commissioner." SECTION 2. Section 489D-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) A licensee shall maintain at all times a tangible net worth of the greater of: (1) $100,000 [or three per cent of tangible assets for the first $100,000,000; (2) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and (3) 0.5 per cent of additional assets for over $1,000,000,000.]; or (2) The total of: (A) Three per cent of total assets for the first $100,000,000; (B) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and (C) 0.5 per cent of additional assets for over $1,000,000,000. Tangible net worth at all times shall be calculated in accordance with generally accepted accounting principles." SECTION 3. Section 489D-10, Hawaii Revised Statutes, is amended to read as follows: "§489D-10 Application and license fees. (a) Each application shall be accompanied by[: [(1) A] a nonrefundable application fee in the amount of $5,000[; and (2) An initial annual license fee of $5,000. (b) The license fee shall be refunded if the application is denied]. (b) An initial license fee of $5,000 shall be assessed upon approval of the application." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect ~~upon its approval~~.
	47	+	SECTION 1. Section 489D-4, Hawaii Revised Statutes, is amended by amending the definition of "permissible investments" to read as follows: ""Permissible investments" means: (1) Cash; (2) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign; (3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, known as bankers' acceptances, that are eligible for purchase by member banks of the Federal Reserve System; (4) Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities; (5) Investment securities that are obligations of the United States, its agencies, or its instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or any political subdivision thereof; (6) Shares in a money market mutual fund, interest-bearing bills, notes, or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, mutual funds primarily composed of these securities, or a fund composed of one or more permissible investments as set forth in paragraphs (1) to (5); (7) Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange; (8) Receivables that are due to a licensee from its authorized delegates pursuant to a contract under section 489D-21, that are not past due or doubtful of collection; [or] (9) Receivables that are due to the licensee from its payment processors for debit or credit card transactions authorized by the licensee's customers for money transmission services obtained from the licensee; or [(9)] (10) Any other investments or security device approved by the commissioner." SECTION 2. Section 489D-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) A licensee shall maintain at all times a tangible net worth of the greater of: (1) $100,000 [or three per cent of tangible assets for the first $100,000,000; (2) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and (3) 0.5 per cent of additional assets for over $1,000,000,000.]; or (2) The total of: (A) Three per cent of total assets for the first $100,000,000; (B) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and (C) 0.5 per cent of additional assets for over $1,000,000,000. Tangible net worth at all times shall be calculated in accordance with generally accepted accounting principles." SECTION 3. Section 489D-10, Hawaii Revised Statutes, is amended to read as follows: "§489D-10 Application and license fees. (a) Each application shall be accompanied by[: [(1) A] a nonrefundable application fee in the amount of $5,000[; and (2) An initial annual license fee of $5,000. (b) The license fee shall be refunded if the application is denied]. (b) An initial license fee of $5,000 shall be assessed upon approval of the application." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 3000.
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49	49		SECTION 1. Section 489D-4, Hawaii Revised Statutes, is amended by amending the definition of "permissible investments" to read as follows:
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51	51		""Permissible investments" means:
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53	53		(1) Cash;
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55	55		(2) Certificates of deposit or other debt obligations of a financial institution, either domestic or foreign;
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57	57		(3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, known as bankers' acceptances, that are eligible for purchase by member banks of the Federal Reserve System;
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59	59		(4) Any investment bearing a rating of one of the three highest grades as defined by a nationally recognized organization that rates securities;
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61	61		(5) Investment securities that are obligations of the United States, its agencies, or its instrumentalities, obligations that are guaranteed fully as to principal and interest by the United States, or any obligations of any state, municipality, or any political subdivision thereof;
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63	63		(6) Shares in a money market mutual fund, interest-bearing bills, notes, or bonds, debentures or stock traded on any national securities exchange or on a national over-the-counter market, mutual funds primarily composed of these securities, or a fund composed of one or more permissible investments as set forth in paragraphs (1) to (5);
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65	65		(7) Any demand borrowing agreement or agreements made with a corporation or a subsidiary of a corporation whose capital stock is listed on a national exchange;
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67	67		(8) Receivables that are due to a licensee from its authorized delegates pursuant to a contract under section 489D-21, that are not past due or doubtful of collection; [or]
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69	69		(9) Receivables that are due to the licensee from its payment processors for debit or credit card transactions authorized by the licensee's customers for money transmission services obtained from the licensee; or
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71	71		[(9)] (10) Any other investments or security device approved by the commissioner."
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73	73		SECTION 2. Section 489D-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
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75	75		"(a) A licensee shall maintain at all times a tangible net worth of the greater of:
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77	77		(1) $100,000 [or three per cent of tangible assets for the first $100,000,000;
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79	79		(2) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and
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81	81		(3) 0.5 per cent of additional assets for over $1,000,000,000.]; or
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83	83		(2) The total of:
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85	85		(A) Three per cent of total assets for the first $100,000,000;
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87	87		(B) Two per cent of additional assets for $100,000,000 to $1,000,000,000; and
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89	89		(C) 0.5 per cent of additional assets for over $1,000,000,000.
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91	91		Tangible net worth at all times shall be calculated in accordance with generally accepted accounting principles."
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93	93		SECTION 3. Section 489D-10, Hawaii Revised Statutes, is amended to read as follows:
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95	95		"§489D-10 Application and license fees. (a) Each application shall be accompanied by[:
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97	97		[(1) A] a nonrefundable application fee in the amount of $5,000[; and
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99	99		(2) An initial annual license fee of $5,000.
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101	101		(b) The license fee shall be refunded if the application is denied].
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103	103		(b) An initial license fee of $5,000 shall be assessed upon approval of the application."
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105	105		SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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107		-	SECTION 5. This Act shall take effect ~~upon its approval~~.
	107	+	SECTION 5. This Act shall take effect on July 1, 3000.
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109		-	Report Title: Money Transmitter; Permissible Investments; Division of Financial Institutions Description: Continues the alignment of Hawaii's money transmitters law with the provisions of the Model Money Transmitters Modernization Act, thereby enabling Hawaii to work within a network of states to license, supervise, and examine transglobal money transmission companies as a multistate system. Provides clarity and consistency of the tangible net worth provision ~~using nationwide standards~~. Assesses the initial license fee of $5,000 for money transmitter applicants upon approval of the application. Adds as a permissible investment the receivables due to the licensee from its payment processors for debit or credit card transactions authorized by the licensee's customers for many transmission services obtained from the licensee. (~~SD1~~) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
	109	+	Report Title: Money Transmitter; Permissible Investments; Division of Financial Institutions Description: Continues the alignment of Hawaii's money transmitters law with the provisions of the Model Money Transmitters Modernization Act, thereby enabling Hawaii to work within a network of states to license, supervise, and examine transglobal money transmission companies as a multistate system; using nationwide standards, provides clarity and consistency of the tangible net worth provision; ensures that licensees have sufficient financial resources to conduct their business in a safe and sound manner; ensures efficiency throughout the licensing process; and protects the interests of money transmission companies, their customers, and the public. Effective 7/1/3000. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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115	115		Report Title:
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117	117		Money Transmitter; Permissible Investments; Division of Financial Institutions
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121	121		Description:
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123		-	Continues the alignment of Hawaii's money transmitters law with the provisions of the Model Money Transmitters Modernization Act, thereby enabling Hawaii to work within a network of states to license, supervise, and examine transglobal money transmission companies as a multistate system. Provides clarity and consistency of the tangible net worth provision ~~using nationwide standards~~. Assesses the initial license fee of $5,000 for money transmitter applicants upon approval of the application. Adds as a permissible investment the receivables due to the licensee from its payment processors for debit or credit card transactions authorized by the licensee's customers for many transmission services obtained from the licensee. (~~SD1~~)
	123	+	Continues the alignment of Hawaii's money transmitters law with the provisions of the Model Money Transmitters Modernization Act, thereby enabling Hawaii to work within a network of states to license, supervise, and examine transglobal money transmission companies as a multistate system; using nationwide standards, provides clarity and consistency of the tangible net worth provision; ensures that licensees have sufficient financial resources to conduct their business in a safe and sound manner; ensures efficiency throughout the licensing process; and protects the interests of money transmission companies, their customers, and the public. Effective 7/1/3000. (HD1)
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131	131		The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.