STAND. COM. REP. NO. 510-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2317

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 2317, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SECURITIES,"

beg leave to report as follows:

The purpose of this measure is to protect vulnerable adults from financial exploitation in relation to securities.

Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Department of Human Services, National Association of Insurance and Financial Advisors Hawaii, Securities Industry Association of Hawaii, and Hawaii Credit Union League. Your Committees received comments on this measure from the Executive Office on Aging and Securities Industry and Financial Markets Association.

Your Committees find that this measure is based upon the North American Securities Administrators Association's Model Act. As of September 30, 2019, twenty-four jurisdictions have enacted legislation based upon the Model Act and one jurisdiction has adopted the Model Act by regulation.

Your Committees further find that financial exploitation is the fastest growing form of elder abuse. Financial exploitation also impacts other individuals, who, because of mental or physical impairment, are unable to protect themselves from abuse. In many instances, financial exploitation goes unreported because the perpetrator is someone entrusted or relied upon by the victim or the victim is ashamed or embarrassed, reliant on the perpetrator for care or support, fearful of retaliation, or unaware of the abuse. This measure protects vulnerable adults from financial exploitation by allowing others to report suspected financial exploitation, thereby minimizing financial loss while preserving dignity, financial independence and control, and overall quality of life of vulnerable adults.

Your Committees note that interested stakeholders submitted suggested amendments in their testimony to your Committees and indicated a willingness to work together on collaborative amendments to present to your Committee on Finance, should your Committee deliberate on this measure.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2317, H.D. 1, and recommend that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ CHRIS LEE, Chair

____________________________ ROY M. TAKUMI, Chair