STAND. COM. REP. NO.573

Honolulu, Hawaii

, 2001

RE: H.B. No. 602

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs, to which was referred H.B. No. 602 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIFORM SECURITIES ACT,"

beg leave to report as follows:

The purpose of this bill is to make numerous amendments to the Uniform Securities Act with regard to exempt transactions, service of process, registration, and circuit court appeals.

This measure was proposed by the administration to modernize and clarify the securities laws to:

(1) Provide greater certainty in the capital formation process involving limited offerings;

(2) Provide a new transactional exemption that mirrors federal law involving stock options as compensation;

(3) Make Hawaii's law more uniform with respect to registration requirements for dealers, investment advisers, and their representatives;

(4) Repeal potentially confusing provisions of the law; and

 

(5) Specify that appeals to the Circuit Court from final orders of the Commissioner of Securities will be conducted without a jury and confined to the record rather than be heard de novo.

Testimony in support of the measure was received from the Department of Commerce and Consumer Affairs and the Investment Company Institute.

Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of style and clarity.

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 602, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 602, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

ERIC G. HAMAKAWA, Chair

____________________________

KENNETH T. HIRAKI, Chair