STAND. COM. REP. NO.480-02
RE: H.B. No. 2473
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Finance, to which was referred H.B. No. 2473 entitled:
"A BILL FOR AN ACT RELATING TO THE UNIFORM SECURITIES ACT,"
begs leave to report as follows:
The purpose of this bill is to modernize and clarify the State's securities laws by:
(1) Exempting certain over-the-counter and foreign securities approved for margin by the Federal Reserve that are not meant to be covered by state securities laws;
(2) Clarifying provisions relating to exemptions for private offerings within the meaning of section 4(2) of the Securities Act of 1933;
(3) Clarifying provisions relating to exemptions under Regulation D of the Securities Act of 1933;
(4) Reinstating a provision allowing a transactional exemption pursuant to rules adopted in accordance with chapter 91, Hawaii Revised Statutes;
(5) Clarifying an exemption for non-issuer transactions;
(6) Repealing the requirement of errors and omissions insurance for investment advisors; and
(7) Authorizing the Commissioner of Securities to determine bond requirements for investment advisors through the rulemaking process.
The Business Registration Division of the Department of Commerce and Consumer Affairs testified in favor of this measure.
Your Committee has made a technical, nonsubstantive amendment to the bill to correct a drafting error.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2473, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2473, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Finance,
DWIGHT Y. TAKAMINE, Chair