Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1325 entitled:

begs leave to report as follows:

The purpose of this measure is to exclude banks, savings institutions, and trust companies from Hawaii's securities dealer's registration requirements and thus conforming state law to the federal Uniform Securities Act.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs and the Hawaii Bankers Association.

Your Committee finds that providing alignment of state law with federal law promotes uniform understanding and enforcement of such provisions within the industry. Your Committee further finds that Hawaii is amongst only three states that have yet to adopt this alignment of regulatory structures.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1325 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.