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 S.B. No. 743 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the current uniform securities law, chapter 485, Hawaii Revised Statutes, and to adopt the 2002 Uniform Securities Act.

The Commissioner of Securities, Investment Company Institute, and Hawaii Commission to Promote Uniform Legislation testified in support of the measure. The Hawaii Bankers Association and American Council of Life Insurers opposed the measure. The Office of Information Practices and Securities Industry Association presented comments on the measure.

This measure proposes to adopt the 2002 Uniform Securities Act. The proposed new act gives the state securities regulator broad powers to investigate, prosecute, and sanction individuals and firms that engage in securities transactions. Additionally, the new law better aligns Hawaii's securities law with the laws of other states, thereby promoting consistent regulation and facilitating the ability of businesses to conduct transactions on a nationwide business. Your Committee finds that this measure will enable more efficient and effective regulation of the securities industry by the State.

Your Committee has amended this measure:

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. 743, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 743, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.