STAND. COM. REP. NO. 3006

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1715

       H.D. 1

       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 H.B. No. 1715, H.D. 1, 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 funds to the Office of the Securities Commissioner for educational outreach targeted at kupuna, based on a model similar to the Department of Commerce and Consumer Affairs' existing investor education programs, particularly in the areas of indexed annuities, life-settlement annuities, variable annuities, and Ponzi schemes.

 

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

 

     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 there is a growing need to educate and inform consumers about financial fraud and protect seniors against financial fraud and scams.  The investor education programs within the Department of Commerce and Consumer Affairs provide 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)  Amending the purpose of the appropriation to the operation of investor education and related financial programs targeted to kupuna, to allow the Department of Commerce and Consumer Affairs more flexibility in educating Hawaii's kupuna about fraudulent investment schemes;

 

     (2)  Amending section 1 to reflect the amended purpose of this measure;

 

     (3)  Inserting an appropriation amount of $50,000; and

 

     (4)  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 H.B. No. 1715, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1715, H.D. 1, 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