Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1878 entitled:

begs leave to report as follows:

The purpose of this bill is to improve the ability of Hawaii's securities industry to conduct business on a nationwide basis by conforming Hawaii's law on investment security adviser compensation to federal securities law. Specifically, this bill allows investment securities advisers to be compensated:

The Department of Commerce and Consumer Protection supported this measure.

Your Committee finds that this bill will help to modernize and reduce the cost and complexity of our securities laws while retaining protections for consumers.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1878 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.