Bill Text: HI HCR158 | 2019 | Regular Session | Introduced


Bill Title: Urging The Department Of Commerce And Consumer Affairs And The Commissioner Of Securities To Be Notified Of And Authorized To Attend Any Meeting At Which Public Employees Are Subject To A Broker-dealer Offering Brokerage Services To Those Public Employees.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Engrossed) 2019-04-09 - Referred to CPH. [HCR158 Detail]

Download: Hawaii-2019-HCR158-Introduced.html

HOUSE OF REPRESENTATIVES

H.C.R. NO.

158

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

Urging the Department of Commerce and Consumer Affairs and the Commissioner of Securities to be notified of and authorized to attend any Meeting at which public employees are subject to a broker-dealer offering brokerage services to those public employees.

 

 


     WHEREAS, in Hawaii, a broker-dealer is defined as a person engaged in the business of effecting transactions in securities for the accounts of others or for the person's own account; and

 

     WHEREAS, a broker-dealer acts as an intermediary for many consumers who wish to participate in the securities market but who lack the knowledge or skills to participate independently in the securities market; and

 

     WHEREAS, any broker-dealer conducting business in the State is subject to regulation pursuant to Chapter 485A, Hawaii Revised Statutes, but these regulations are meant to penalize exceptionally bad actors engaged in conduct including fraud or deceit; and

 

     WHEREAS, broker-dealer salaries are commission-based and broker-dealers are therefore incentivized to make as many sales as possible to maximize their profits; and

 

     WHEREAS, maximization of a broker-dealer's profits often comes at the cost of riskier and less prudent investments on behalf of a broker-dealer's clients; and

 

     WHEREAS, many broker-dealers in the State offer their brokerage services at large group meetings and functions, sometimes for public employees; and

 

     WHEREAS, the Commissioner of Securities is vested with the administration of Hawaii's laws regulating broker-dealers; and

     WHEREAS, currently, the Commissioner of Securities does not receive notification of meetings at which public employees are subject to a broker-dealer's offering of services; and

 

     WHEREAS, it would be in the best interests of the State and its public employees for the Commissioner of Securities to be aware of and have the option to attend any such meeting to ensure that the broker-dealer is not exerting undue pressure or otherwise taking advantage of any public employee; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2019, the Senate concurring, that the Department of Commerce and Consumer Affairs is urged to require that the Commissioner of Securities be notified of and authorized to attend any public employer-approved meeting at which public employees are subject to a broker-dealer offering brokerage services to those public employees; and

 

     BE IT FURTHER RESOLVED that any entity conducting a public employer-approved meeting at which public employees are subject to a broker-dealer offering brokerage services to those public employees is urged to notify the Department of Commerce and Consumer Affairs of the date, time, and location of the meeting; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Director of Commerce and Consumer Affairs, Commissioner of Securities of the Department of Commerce and Consumer Affairs, Director of Human Resources Development, Executive Director of the State of Hawaii Employees' Retirement System, Administrator of the Hawaii Employer-Union Health Benefits Trust Fund, Hawaii State Director of United Public Workers, and Executive Director of Hawaii Government Employees Association.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

DCCA; Commissioner of Securities; Public Employees; Brokerage Services

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