STAND. COM. REP. NO.274-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 2473
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2473 entitled:
"A BILL FOR AN ACT RELATING TO THE UNIFORM SECURITIES ACT,"
begs leave to report as follows:
The purpose of this administration bill is to modernize and clarify our State's securities laws by:
(1) Providing greater certainty in the capital formation process involving limited offerings by:
(A) Eliminating existing confusion in interpretation of section 485-6(15), Hawaii Revised Statutes, by breaking the section into two separate exemptions, one for private offerings and another under REG D of the Securities Act of 1933; and
(B) Making a clarifying amendment to section 485-6(2);
(2) Providing a new securities exemption for foreign securities approved by the Board of Governors of the Federal Reserve that are not meant to be covered by state securities laws;
(3) Replacing a transactional exemption inadvertently repealed by Act 16, Session Laws of Hawaii 2000, that allows the Commissioner of Securities to conditionally or unconditionally exempt transactions by rule; and
(4) Repealing the investment advisor bond and errors and omissions insurance requirements.
Testimony in support of this bill was provided by the Business Registration Division of the Department of Commerce and Consumer Affairs.
Your Committee finds that Hawaii is the only state in the nation with an errors and omissions insurance requirement, which has no demonstrable impact on investor protection. In addition, the bond requirement has been repealed because it conflicts with the North American Securities Administrators Association model rule on net worth and bonding which the Securities Division is adopting through the rulemaking process.
As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2473 and recommends that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |