STAND. COM. REP. NO.  1413

Honolulu, Hawaii

                , 2013

RE:   S.B. No. 1066

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1066, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SECURITIES LAW,"

begs leave to report as follows:

The purpose of this measure is to make clarifications and corrections to Hawaii's securities laws.  Specifically, this measure:

     (1)  Corrects a grammatical error in the definition of the term "security";

     (2)  Amends the definition of "security" to correctly state the fourth element of an investment contract as determined by the Hawaii Supreme Court in State v. Hawaii Market Center, Inc., 52 Haw. 642, 485 P.2d 105 (1971); and

     (3)  Corrects an erroneous citation to the federal Securities and Exchange Act of 1934. 

The Department of Commerce and Consumer Affairs and AARP Hawaii submitted testimony in support of this measure.

     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. 1066, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair