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HB1049
HOUSE OF REPRESENTATIVES
H.B. NO.
1049
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE MONEY TRANSMITTERS MODERNIZATION ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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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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""Permissible
investments" means:
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(1)
�
Cash;
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(2)
�
Certificates of deposit or other debt
obligations of a financial institution, either domestic or foreign;
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(3)
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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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(4)
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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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(5)
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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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(6)
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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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(7)
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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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(8)
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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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(9)
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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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[
(9)
]
(10)
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Any other investments or security device
approved by the commissioner."
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SECTION
2.
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Section
489D-6,
Hawaii
Revised Statutes, is amended by amending subsection (a) to read as follows:
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"
(a)
�
A licensee shall maintain at all times a tangible
net worth of the greater
of:
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(1)
�
$100,000
[
or three per cent of tangible assets for the first $100,000,000;
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(2)
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Two
per cent of additional assets for $100,000,000 to $1,000,000,000; and
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(3)
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0.5
per cent of additional assets for over $1,000,000,000.
]
; or
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(2)
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The total of
���������
(A)
�
Three per cent of total assets for the
first $100,000,000; and
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(B)
�
Two per cent of additional assets for $100,000,000 to
$1,000,000,000; and
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(C)
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0.5 per cent of additional assets for over
$1,000,000,000.
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[
Tangible net worth at all times
shall be calculated in accordance with generally accepted accounting
principles.
]"
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SECTION
3.
�
Section 489D-10, Hawaii Revised
Statutes, is amended to read as follows:
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"�489D-10
�
Application and license fees
.
�
(a)
�
Each
application shall be accompanied by[
:
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(1)
�
A
]
a
nonrefundable
application fee in the amount of $5,000[
; and
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(2)
�
An initial annual license fee of
$5,000
].
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(b)
�
[
The license fee shall be refunded if the
application is denied.
]
An initial license fee of $5,000 shall be
assessed upon approval of the application.
"
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SECTION
4.
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Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
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SECTION
5.
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This Act, upon its approval, shall
take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
BY REQUEST
Report Title:
Department
of Commerce and Consumer Affairs; Division of Financial Institutions; Money
Transmitter; Permissible Investments
Description:
Aligns
the State's Money Transmitters Modernization Act with 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; adopts nationwide standards that
provide clarity and consistency in calculating the tangible net worth of
licensees; ensures that licensees have sufficient financial resources to
conduct their business in a safe and sound manner; and promotes efficiency
throughout the licensing process.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.