STAND. COM. REP. NO. 3262

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2481
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 2481, 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 enhance consumer protection
for Hawaii investors. 

     The Commissioner of Securities, Business Law Section of the
Hawaii State Bar Association, Investment Company Institute, and a
law firm submitted testimony on the measure.

     This measure clarifies the authority of the Commissioner to:

     (1)  Suspend an application or registration and limit or
          impose conditions on a registrant's activities;

     (2)  Permit a broker-dealer or investment adviser to
          register a successor entity; 

     (3)  Pursue an ongoing or new action against an applicant or
          registrant;

     (4)  Sanction parties for a failure to supervise; and


 
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     (5)  Exempt Canadian dealers servicing Canadian citizens
          vacationing in Hawaii from the requirements of the
          Uniform Securities Act (Act).

     Your Committee finds that these amendments to the Act will
enable the Commissioner to better protect consumers and
administer the Act with greater efficiency and effectiveness.

     Your Committee has amended the measure by making technical,
nonsubstantive amendments to accurately reflect existing
statutory language and for purposes of consistency and style.
 
     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. 2481, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2481, H.D. 1, S.D. 1, and be placed on the
calendar for Third Reading.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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