STAND. COM. REP. NO.  232-20

 

Honolulu, Hawaii

                , 2020

 

RE:   H.B. No. 2317

      H.D. 1

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

 

Sir:

 

     Your Committee on Human Services & Homelessness, to which was referred H.B. No. 2317 entitled:

 

"A BILL FOR AN ACT RELATING TO SECURITIES,"

 

begs leave to report as follows:

 

     The purpose of this measure is to protect vulnerable adults from financial exploitation in relation to securities.

 

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Department of Human Services, Securities Industry and Financial Markets Association, Securities Industry Association of Hawaii, and one individual.  Your Committee received comments on this measure from the Executive Office of Aging, NAIFA Hawaii, and Civil Beat Law Center for the Public Interest.

 

     Your Committee finds that protecting the State's seniors and vulnerable adults from financial exploitation is vital to the community.  Increasing the number of reports of suspected financial exploitation cases will eliminate or at least minimize financial losses while also preserving the dignity, financial independence and control, and overall quality of life of vulnerable adults.
     Your Committee has amended this measure by:

 

     (1)  Clarifying that a qualified person may, rather than shall, notify the Commissioner of Securities of a reasonable belief that financial exploitation of a vulnerable adult has occurred;

 

     (2)  Clarifying the individuals who have immunity as a result of disclosure of information concerning the financial exploitation of a vulnerable adult;

 

     (3)  Specifying the individuals that a qualified person may notify if the qualified person has a reasonable belief that financial exploitation has occurred;

 

     (4)  Clarifying that only a broker-dealer or investment adviser may initiate an internal review relating to suspected financial abuse of a vulnerable adult;

 

     (5)  Adding qualified individuals to the persons who are immune from liability for delaying disbursements;

 

     (6)  Clarifying the confidentiality requirements for records made available pursuant to this measure;

 

     (7)  Changing the effective date to December 31, 2059, to encourage further discussion; and

 

     (8)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2317, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2317, H.D. 1, and be referred to your Committees on Consumer Protection & Commerce and Judiciary.


 

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,

 

 

 

 

____________________________

JOY A. SAN BUENAVENTURA, Chair