STAND. COM. REP. NO. 1090
RE: H.B. No. 940
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 940, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO SECURITIES,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Mandate reporting of suspected financial exploitation of elders and vulnerable adults in relation to securities;
(2) Provide immunity for good faith reporting; and
(3) Authorize the delay of disbursements and transactions in situations of suspected financial exploitation.
Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Department of Human Services, AARP Hawai‘i, NAIFA Hawaii, Securities Industry and Financial Markets Association, Securities Industry Association of Hawaii, and one individual.
Your Committee finds that financial exploitation of elders is the fastest growing form of elder abuse and can result in devastating consequences for victims, including fear, loss of independence, reduced quality of life, and even death. This measure is based on a securities model act from 2016 that has since been enacted in more than two-dozen states across the country and addresses existing privacy rules and concerns about potential legal exposure and liability that may make it difficult for securities professionals to contact regulators and other government authorities to report suspected financial exploitation. This measure enables financial institutions and the State to work together in preventing, identifying, and addressing cases of financial abuse to combat this growing threat to vulnerable residents.
Your Committee has amended this measure by:
(1) Making it effective upon its approval; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 940, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 940, H.D. 2, S.D. 1, and be referred to your Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
ROSALYN H. BAKER, Chair