STAND. COM. REP. NO. 1657-06
Honolulu, Hawaii
, 2006
RE: S.B. No. 743
S.D. 2
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2006
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 743, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE UNIFORM SECURITIES ACT,"
begs leave to report as follows:
The purpose of this bill is to repeal Hawaii's current uniform securities law and adopt the Uniform Securities Act of 2002 (USA) in its place.
The Commission to Promote Uniform Legislation, AARP Hawaii, and Hawaii Bankers Association testified in support of this bill. The Investment Company Institute supported this measure in part. The Department of Commerce and Consumer Affairs supported this bill with amendments. The American Council of Life Insurers and Securities Industry Association opposed this measure. The National Association of Insurance and Financial Advisors opposed this bill in part. The Office of Information Practices offered comments.
Your Committee has amended this measure by:
(1) Reducing the civil penalties for violations of the USA from $100,000 to $50,000 per violation;
(2) Specifying that a withdrawal of registration of a broker-dealer, agent, investment adviser, and investment adviser becomes effective 60 days after the filing of the application to withdraw rather than 90 days;
(3) Allowing the Commissioner of Securities to institute a revocation or suspension proceeding within one year after the withdrawal became effective rather than within two years; and
(4) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 743, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 743, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT TAKAMINE, Chair |
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