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:
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; [[Struck through: or]]
[Underlined: (9)] [Underlined: 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]
[[Struck through: (9)]] [Underlined: (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 [[Struck through: or three per cent of tangible assets for the first $100,000,000;]
[Struck through: (2)] [Struck through: Two per cent of additional assets for $100,000,000 to $1,000,000,000; and]
[Struck through: (3)] [Struck through: 0.5 per cent of additional assets for over $1,000,000,000.]][Underlined: ; or]
[Underlined: (2)] [Underlined: The total of]
[Underlined: (A)] [Underlined: Three per cent of total assets for the first $100,000,000; and][Underlined: ]
[Underlined: (B)] [Underlined: Two per cent of additional assets for $100,000,000 to $1,000,000,000; and]
[Underlined: (C)] [Underlined: 0.5 per cent of additional assets for over $1,000,000,000.]
[[Struck through: 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[[Struck through: :]
[Struck through: (1)] [Struck through: A]] [Underlined: a] nonrefundable application fee in the amount of $5,000[[Struck through: ; and]
[Struck through: (2)] [Struck through: An initial annual license fee of $5,000]].[Struck through: ]
(b) [[Struck through: The license fee shall be refunded if the application is denied.]] [Underlined: An initial license fee of $5,000 shall be assessed upon approval of the application.]"[Underlined: ]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. 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.