STAND. COM. REP. NO.  266-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1853

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1853 entitled:

"A BILL FOR AN ACT RELATING TO TRUSTEES,"

begs leave to report as follows:

The purpose of this measure is to set the framework for the establishment of directed trusts in the State by, among other things:

     (1)  Expanding the role of advisors in trust administration;

     (2)  Limiting the liability of trustees for trust administration decisions made by advisors; and

     (3)  Removing the trustee's duty to diversify under the Uniform Prudent Investor Act when a trust provision directs the retention of property.

The Department of Commerce and Consumer Affairs' Business Registration Division provided comments.

     Your Committee has amended this measure by removing the unused definition of "investment advisor" to enhance clarity and consistency within the measure.  

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1853, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1853, H.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair