Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 99, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to reduce filing fees for certain securities transactions.

The Business Registration Division of the Department of Commerce and Consumer Affairs (Division) presented comments on the measure.

This measure proposes to decrease the fees for the registration of mutual funds sold in the State, the notice filing of Securities and Exchange Commission Form D for the private placement of securities, the registration of securities sold in the State by qualification, and the renewal of the latter registration.

Your Committee finds that a sampling by the Division of mutual fund filing fees charged by other states indicates that Hawaii's securities are near the bottom of the fee scale, and that any further reductions will make Hawaii's fees the lowest in the nation.

Your Committee further finds that the Division periodically reviews and adjusts its fees to align fee revenues with the cost of services. As a result of a recent review, the Division administratively decreased the fee for the notice filing of Securities and Exchange Commission Form D from $200 to $100, consistent with the proposed statutory amendment contained in this measure.

Your Committee has amended this measure by deleting the proposed filing fee reductions for the registration of mutual funds sold in the State, for the registration of securities sold in the State by qualification, and for the renewal of the latter registration.

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 H.B. No. 99, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 99, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.