Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 743, S.D. 1, 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, the Hawaii Bankers Association, the Investment Company Institute, and the Hawaii Commission to Promote Uniform Legislation testified in support of the measure. The Securities Industry Association, and the National Association of Insurance and Financial Advisors-Hawaii Chapter, testified in opposition to the measure. The Office of Information Practices and the American Council of Life Insurers offered comments on the measure.

This measure adopts the 2002 Uniform Securities Act. Under this Act, state securities regulators are granted the power to investigate, prosecute, and sanction individuals and firms engaged in security transactions. Your Committee finds that this measure will conform Hawaii's securities law to federal securities law as well as make Hawaii's securities law uniform with other states.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 743, S.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.