STAND. COM. REP. NO. 3679

Honolulu, Hawaii

RE: H.B. No. 2317

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 2317, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SECURITIES,"

begs leave to report as follows:

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

Prior to the hearing on this measure, your Committee posted and made available for public review a proposed S.D. 1, which amends this measure by inserting an effective date of upon its approval.

Your Committee received testimony in support of this measure or the proposed S.D. 1 from the Department of Commerce and Consumer Affairs, Department of Human Services, Securities Industry Association of Hawaii, Securities Industry and Financial Markets Association, and one individual. Your Committee received comments on the proposed S.D. 1 from the Office of Information Practices.

Your Committee finds that Americans lose approximately $2.9 billion annually in media-reported cases of financial exploitation. Furthermore, it is estimated that only one out of every forty-four instances of financial abuse is reported to the authorities, much less the media. The financial exploitation of the elderly and vulnerable adults has steadily increased during the COVID-19 pandemic, and the financial consequences for those who fall victim to financial exploitations are often devastating and irreparable, and can include loss of independence, a reduced quality of life, and even death. This measure reflects consensus language between various stakeholders to strengthen efforts to address financial exploitation and to help protect vulnerable adults and our kupuna.

Your Committee has amended this measure by adopting the proposed S.D. 1 and further amending this measure by:

(1) Clarifying that "financial exploitation" includes converting money, assets, or property of the elder or the vulnerable adult to deprive the elder or the vulnerable adult of the ownership, use, benefit, or possession of the elder's or the vulnerable adult's money, assets, or property;

(2) Clarifying that all records made available pursuant to the provisions of this measure shall be exempt from disclosure under chapter 92F; and

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

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2317, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2317, H.D. 2, S.D. 1, and be referred to your Committee on Judiciary.

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

________________________________

ROSALYN H. BAKER, Chair