STAND. COM. REP. NO. 604

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1071
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 1071 entitled:

     "A BILL FOR AN ACT RELATING TO SECURITIES,"

begs leave to report as follows:

     The purpose of this bill is to authorize the Commissioner of
Securities to allow a prospectus for a small corporate offering
to meet the disclosure requirements under state law, if the
prospectus meets all qualifications in the Small Corporate
Offerings Registration Form adopted by the North American
Securities Administrators Association.

     Your Committee finds that this measure will enable small
businesses to raise up to $1,000,000 in start-up capital by
selling stock directly to the public after registering the shares
under a Small Corporate Offerings Registration.  Ready access to
available capital is a frequent cause of small business failures
in Hawaii.  Applying for conventional loans or venture capital is
time-consuming and counterproductive.

     Your Committee has amended this measure by recasting the new
language on the prospectus for small corporate offerings as a new
paragraph in existing subsection 485-10(b), Hawaii Revised
Statutes, rather than as an entirely new section to chapter 485.
This purely structural change eliminates the need to amend other
statutory provisions to cross reference the new law.

 
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                                   STAND. COM. REP. NO. 604
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1071, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1071, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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