STAND. COM. REP. NO.2073

Honolulu, Hawaii

, 2002

RE: S.B. No. 2731

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2731 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.

The Commissioner of Securities (Commissioner) testified in support of this measure.

This measure:

(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 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 Commissioner.

Your Committee has amended this measure by making technical changes to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2731, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2731, S.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair