STAND. COM. REP. NO. 876

Honolulu, Hawaii

RE:    S.B. No. 1392

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 1392, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENHANCED PENALTIES FOR SECURITIES VIOLATIONS COMMITTED AGAINST ELDERS,"

begs leave to report as follows:

     The purpose of this measure is to authorize enhanced civil and administrative penalties for securities violations, when the violations are directed toward, target, or are committed against seniors who are sixty-two years of age or older.

     This measure authorizes civil and administrative penalties of up to $50,000 for each violation.

     Your Committee received testimony from the Attorney General's Office, the Commissioner of Securities of the Department of Commerce and Consumer Affairs, AARP Hawaii, and a private citizen in support of the bill.  There was no opposition to the bill.

     Your Committee finds that investment fraud against seniors is a growing concern in Hawaii.  A recent statewide survey done by AARP Hawaii demonstrated the problem.  This measure will allow the State to be proactive in deterring investment fraud against seniors.

     Your Committee amended the bill to include a savings clause since new penalties were being added to the existing law.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1392, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1392, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair