Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred S.B. No. 97 entitled:

begs leave to report as follows:

The purpose of this measure is to create a criminal offense of telemarketing fraud involving use, at least in part, of a telephone and involving direct or implied claims of receiving anything of value or of recovering losses from a prize promotion.

Your Committee received testimony in favor of this measure from the Department of Commerce and Consumer Affairs and the Prosecuting Attorney and the Police Department of the City and County of Honolulu. Your Committee has received comments on this measure from the Office of the Public Defender.

Telemarketing fraud is a plague in the United States. Each year, unscrupulous criminals prey on Americans to the tune of over forty billion dollars. Fraudulent telemarketers often target older citizens, knowing that many of them have significant assets from a lifetime of saving.

Criminal sanctions will appropriately address these violations and protect the community rather than allow violators to shut down, move to another locale, and begin again.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 97 and recommends that it pass Second Reading and be referred to the Committees on Commerce, Consumer Protection and Housing and Judiciary.