STAND. COM. REP. NO.2495
Honolulu, Hawaii
, 2002
RE: S.B. No. 2731
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred S.B. No. 2731, S.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 to clarify and update the State's securities laws.
The Commissioner of Securities (Commissioner) testified in support of this measure.
This measure:
(1) Provides that foreign securities approved for margin by the Board of Governors of the Federal Reserve System are exempt from certain requirements relating to filing, registration, and advertising;
(2) Re-establishes the Commissioner's authority to exempt transactions from the above requirements pursuant to rule, to rectify an inadvertent repeal of this authority by Act 16, Session Laws of Hawaii 2001;
(3) Clarifies the exempt transactions law by establishing separate exemptions for private offerings within the meaning of section 4(2) of the Securities Act of 1933 and for offers or sales of securities made under Regulation D of the Act;
(4) Repeals the requirement that investment advisers obtain errors and omission coverage, thereby making Hawaii's law consistent with the laws of the other states, since this requirement appears to have no demonstrable impact on investor protection; and
(5) Repeals specific bonding requirements for investment advisers to allow the establishment of these requirements by administrative rule, consistent with the North American Securities Administrators Association model rule.
Your Committee finds that these changes will facilitate securities transactions in this State and the oversight of these transactions by the Commissioner.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2731, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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____________________________ BRIAN KANNO, Chair |
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