STAND. COM. REP. NO. 2412

Honolulu, Hawaii

RE:    S.B. No. 2345

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Human Services and Commerce and Consumer Protection, to which was referred S.B. No. 2345 entitled:

"A BILL FOR AN ACT RELATING TO THE INVESTOR EDUCATION PROGRAM,"

beg leave to report as follows:

     The purpose and intent of this measure is to support and protect Hawaii's kupuna by appropriating $50,000 to the Office of the Securities Commissioner for the continued operation of the investor education program targeted to kupuna.

     Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs and one individual.

     Your Committees find that elderly citizens are often victimized by consumer and financial fraud such as identity theft, investment fraud, and health care fraud.  Your Committees further find that fighting abuse and fraud against the elderly presents unique challenges in Hawaii because the State's population is aging much faster than the national average and Hawaii's kupuna population is more diverse than in any other state.  The investor education program within the Department of Commerce and Consumer Affairs provides kupuna with education and outreach, including information about how to make wise choices when investing and how to detect financial fraud.

     Your Committees have amended this measure by:

     (1)  Expanding the scope of the appropriation to include investor and other related financial programs to allow the Department of Commerce and Consumer Affairs more flexibility in educating Hawaii's kupuna about fraudulent investment schemes; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Human Services and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2345, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2345, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Human Services and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair