STAND. COM. REP. NO.3165
RE: H.B. No. 2473
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Judiciary, to which was referred H.B. No. 2473, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE UNIFORM SECURITIES ACT,"
begs leave to report as follows:
The purpose of this measure is to clarify and update the State's securities laws.
(1) Provides that foreign securities approved for margin by the Board of Governors of the Federal Reserve System are exempt from certain requirements relating to filing, registration, and advertising;
(2) Re-establishes the Securities Commissioner's authority to exempt transactions from the above requirements pursuant to rule, to rectify an inadvertent repeal of this authority by Act 16, Session Laws of Hawaii 2000, and additionally, makes other clarifications in the exempt transactions law;
(3) Repeals the unnecessary requirement that investment advisers obtain errors and omission coverage, thereby making Hawaii's law consistent with the laws of the other states; and
(4) Repeals specific bonding requirements for investment advisers to allow the establishment of these requirements by administrative rule.
Your Committee finds that these changes will facilitate securities transactions in this State and the oversight of these transactions by the Securities Commissioner.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2473, H.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
BRIAN KANNO, Chair