STAND. COM. REP. NO. 380

Honolulu, Hawaii

RE: S.B. No. 1094

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1094 entitled:

"A BILL FOR AN ACT RELATING TO SECURITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Mandate reporting of suspected financial exploitation of elders and vulnerable adults in relation to securities;

(2) Provide immunity for good faith reporting; and

(3) Authorize delay of disbursements and transactions.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Maui Police Department, AARP Hawai‘i, NAIFA Hawaii, LPL Financial, Securities Industry Association of Hawaii, Hawaii Credit Union League, and Securities Industry and Financial Markets Association. Your Committee received comments on this measure from the Department of Human Services and Office of Information Practices.

Your Committee finds that financial exploitation has been described as the fastest growing form of elder abuse, and the financial consequences for those who fall victim to financial exploitation are often devastating and irreparable. Older adults are susceptible to fraud and financial exploitation in part because they own sixty-seven percent of bank deposits in the United States, and they are also more vulnerable because of health status, cognitive ability, and social isolation. This measure is based on a model act that expands the State's securities laws to allow the Department of Commerce and Consumer Affairs to better protect Hawaii's elders and vulnerable adults from financial exploitation.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1094 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

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

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ROSALYN H. BAKER, Chair