STAND. COM. REP. NO. 1532

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 830
                                        H.D. 1
                                        S.D. 2




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 830, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO SECURITIES,"

begs leave to report as follows:

     The purpose of this measure is to enable small companies to
raise capital through the Small Corporate Registration (SCOR)
program, a uniform registration system that allows small
companies to obtain equity financing by selling common stock
directly to the public.  

     The Department of Business, Economic Development, and
Tourism submitted testimony in support of the measure.  The
Hawaii Congress on Small Business, while not present, submitted
testimony in support of the measure.  

     Your Committee finds that a lack of capital is one of the
most frequent causes of small business failures in Hawaii.  This
measure would allow small companies to raise financing by selling
common stock directly to the public through a simplified filing
under the SCOR program.  The establishment of an "accredited
investor" exemption under section 485-6, Hawaii Revised Statutes,
will enable businesses to raise capital through a private
placement with qualified higher net worth individuals and
institutions.


 
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                                   STAND. COM. REP. NO. 1532
                                   Page 2


     Your Committee has made technical, nonsubstantive amendments
to the measure. 
    
     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. 830, H.D. 1, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as H.B. No. 830, H.D. 1, S.D. 2.

                                   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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