STAND. COM. REP. NO.1129

Honolulu, Hawaii

, 2001

RE: S.B. No. 1078

S.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1078, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIFORM SECURITIES ACT,"

beg leave to report as follows:

The purpose of this measure, which is a companion to House Bill 602, H.D. 1, is to update Hawaii's laws governing securities.

This bill proposes to:

(1) Modernize and clarify State law to provide:

(A) Greater certainty in the capital formation process involving limited offerings; and

(B) A new transactional exemption consistent with federal law involving stock options as compensation;

(2) Make the State law more uniform with respect to

registration requirements for dealers, investment advisors, and their representatives; and

(3) Repeal the requirement that an appeal of a decision rendered by the Commissioner of Securities to the circuit court be heard de novo.

Testimony in support of this measure was received from the Commissioner of Securities and the Investment Company Institute.

Your Committees find that it is in the best interest of the State to enact legislation that modernizes and maintains the uniformity of Hawaii's business registration laws with those of other states. By adopting language that is consistent with the majority of other states and by incorporating the latest developments in securities law, this measure will improve the State's regulatory effectiveness through the coordination and uniform interpretation of laws of other states.

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1078, S.D. 1, and recommend that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs,

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ERIC G. HAMAKAWA, Chair

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KENNETH T. HIRAKI, Chair