RELATING TO SPORTS WAGERING.

HB2570

HOUSE OF REPRESENTATIVES

H.B. NO.

2570

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO SPORTS WAGERING
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

REGULATION
OF SPORTS WAGERING

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� -1
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Definitions.
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As used in this chapter, unless the context
otherwise requires:

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"Adjusted gross sports wagering
receipts" means gross sports wagering receipts less the total of all sums
actually paid out as winnings to patrons, including the monetary value of any
merchandise or thing of value awarded as a prize, and any applicable taxes,
including federal excise tax.

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"Amateur sports event"
means any sports or athletic event that is not a professional sports or
athletic event, collegiate sports or athletic event, or youth sports
event.
�
"Amateur sports event"
includes domestic, international, and Olympic sports or athletic events.

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"Approved mobile application or
digital platform" means a mobile application or digital platform approved
by the department that uses the Internet, at least in part, to accept wagers
originating in the State or in a state or jurisdiction approved by the
department and consistent with federal law.

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"Cash" means moneys that
have value as legal tender.

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"Collegiate sports or athletic
event" means an athletic or sporting event in which at least one
participant is a team or contestant competing on behalf or under the
sponsorship of a public or private institution of higher education, regardless of
where the institution is located.

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"Department" means the
department of business, economic development, and tourism.

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"Fantasy sports contest"
means a contest in which:

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(1)
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There are no fewer
than two participants; provided that all participants are natural persons and a
fantasy sports contest operator shall not be construed to be a participant;

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(2)
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Participants own,
manage, or coach imaginary teams;

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(3)
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All prizes and
awards offered to winning participants are established and made known to
participants in advance of the game or contest;

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(4)
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The winning
outcome of the game or contest reflects the relative skill of the participants
and is determined by statistics generated by actual individuals, including
athletes in the case of a sporting event; and

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(5)
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No winning outcome
is based solely on the performance of an individual athlete or on the score,
point spread, or any performance of any single real-world team or any
combination of real-world teams.

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"Gross sports wagering
receipts" means the total of all cash paid by patrons as wagers.

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"License" means any
license applied for or issued by the department under this chapter, including
but not limited to:

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(1)
�
A sports wagering
operator license under section -5 to permit a sports wagering
operator to operate sports wagering through an approved mobile application or
digital platform; and

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(2)
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A sports wagering
supplier license under section -6 to sell or lease equipment,
systems, or services to be used in connection with sports wagering but not to
directly accept wagers.

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"National criminal history
background check system" means the criminal history record system
maintained by the Federal Bureau of Investigation based on fingerprint
identification or any other method of positive identification.

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"Professional sports or
athletic event" means an event at which two or more contestants
participate in a sports event or athletic event and one or more participants
receive compensation.
�
"Professional
sports or athletic event" does not include any youth sports event.

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"Qualified gaming entity"
means an entity that can offer sports wagering through computers, mobile
applications, or digital platforms pursuant to the requirements under this
chapter.

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"Sports wagering" means
the business of accepting wagers on wagering events or portions of wagering
events, the individual performance statistics of individuals in wagering
events, or any combination thereof, via a sports wagering operator's approved
mobile application or digital platform.
�

"Sports wagering" includes but is not limited to single-game
bets, teaser bets, parlays, over-under, moneyline bets, pools, exchange
wagering, in‑game wagering, in-play bets, proposition bets, and straight
bets.
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"Sports wagering" does
not include fantasy sports contests.

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"Sports wagering account"
means a financial record established by a sports wagering operator for an
individual patron in which the patron may deposit and withdraw funds for sports
wagering and other authorized purchases and to which the licensed sports
wagering operator may credit winnings or other amounts due to that patron or
authorized by that patron.

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"Sports wagering operator"
means a sports wagering operator licensed pursuant to section
-5.

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"Wager" means a sum of
money or thing of value risked on an uncertain occurrence.

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"Wagering event" means any
professional sports or athletic event, collegiate sports or athletic event, or
amateur sports event, including but not limited to an Olympic or international
sports or athletic event; a motor vehicle race; electronic sports event, also
known as e-sports; and any other event as permitted by the department; provided
that the event is not:

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(1)
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A youth sports event; or

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(2)
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Any collegiate sports or athletic event in
which one of the participants is a team or contestant competing on behalf of or
under the sponsorship of a public or private institution of higher education
that is primarily located in the State, unless the collegiate sports or
athletic event is a tournament, in which case only the individual games or
events of the tournament that directly include a team or contestant competing
on behalf of or under the sponsorship of a public or private institution of
higher education that is primarily located in the State are excluded.

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"Winnings" means the total
of all sums actually paid out, including the monetary value of anything of
value awarded as a prize.

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"Youth sports event" means
an athletic event:

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(1)
�
Involving a
majority of participants under eighteen years of age; or

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(2)
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In which at least
one participant is a team from a public or private elementary, middle, or
secondary school, regardless of where the school is located;

provided that if an athletic event meets the
definition of "collegiate sports or athletic event" or
"professional sports or athletic event", the event shall not be
considered a youth sports event regardless of the age of the participants.

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"Youth
sports event" does not include an international athletic event organized
by the International Olympic Committee, regardless of the age of the
participants.

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� -2
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Authorization of sports wagering; license
required; rules; emergency rules.
�

(a)
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Notwithstanding any law to
the contrary, sports wagering and ancillary activities shall be lawful when
conducted under this chapter and rules adopted under this chapter.

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(b)
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No person or entity shall engage in any activities in the State that
require a license under this chapter unless all necessary licenses have been
obtained under this chapter and rules adopted under this chapter.

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(c)
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The department may conduct periodic
verifications to determine whether licensed sports betting operators are
properly calculating taxes and have adequate reserves to pay out any winnings.

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(d) Any
information that is submitted, collected, or gathered from an applicant,
licensee, or certificate holder pursuant to this chapter that constitutes
proprietary, confidential, sensitive, or business information, including but
not limited to application materials, background investigations, and
information submitted in the regular course of operations, shall be
confidential and shall not be subject to disclosure to any third party, unless
the request for the information is made by a duly authorized law enforcement
agency for legitimate law enforcement purposes, or pursuant to a court order.

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(e)
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The department shall submit the following
reports to the legislature, which shall be available to the public:

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(1)
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Twenty days prior to the issuance of sports
betting operator licenses, regarding the planning, implementation, and
operation of sports wagering; and

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(2)
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Annual reports no later than twenty days prior
to the convening of each regular session that contain a summary of its
activities during the preceding year, including:

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(A)
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Actions taken by the department to ensure
compliance by operators;

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(B)
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Actions taken against any illegal sports
betting operations, including unlicensed sports betting operators;

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(C)
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Funds received from license fees, tax
revenues, fines or other sources;

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(D)
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The department's engagement with the
community; and

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(E)
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Any other findings or recommendations,
including any proposed legislation.

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(f)
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The department shall adopt rules pursuant to
chapter 91 to effectuate the purposes of this chapter, including rules
regarding:

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(1)
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Geolocation, identity-verification, and
age-verification controls to ensure wagers are accepted only from a person who
is of legal age to place a sports wager and who is physically within an
authorized jurisdiction at the time the person places the wager;

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(2)
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Protocols to ensure game integrity and
anti-money laundering compliance;

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(3)
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Auditing, tax reporting, and revenue
reconciliation;

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(4)
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Sports wagering equipment testing and other
technical standards;

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(5)
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Data privacy and cybersecurity;

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(6)
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Implementation of a state-wide voluntary
exclusion program established by the department;

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(7)
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A requirement on a sports wagering operator to
allow a patron to set limits on their wagers, deposits, and time spent on the
operator's sports wagering platform;

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(8)
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Advertising and marketing standards that
prohibit the targeting of minors and individuals participating in the voluntary
exclusion program; and

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(9)
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Prohibiting bets on injuries, penalties, the
outcome of player discipline rulings or replay reviews, and any other type or
form of betting under this chapter that is harmful to an athlete or patron.

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(g)
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The department shall adopt rules pursuant to chapter 91, which shall be
consistent, to the extent commercially reasonable and practicable, with sports
betting rules adopted in other jurisdictions, to effectuate the purposes of
this chapter.
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The rules shall include
but not be limited to:

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(1)
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The
department's determination that there is imminent peril and the reasons
therefor shall be stated in, and as a part of, the emergency rule; and

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(2)
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The department
shall make the emergency rule known to the public by publishing the rule, at
least once, in a newspaper of general circulation in the State, within five
days from the date the rule is filed with the lieutenant governor.

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� -3
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Application; criminal history record check.
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(a)
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An
application for a license or renewal of a license required under this chapter
shall be submitted on an application form as prescribed by the department.
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An application submitted to the department
shall include the following:

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(1)
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The full name,
current address, and contact information of the applicant;

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(2)
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Disclosure of each
person that has control of the applicant as described in subsection (b);

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(3)
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Consent to permit
the department to conduct a criminal history record check under subsection (c)
of the applicant and each person disclosed under subsection (b)(2);

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(4)
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For the applicant
and each person disclosed under paragraph (2) who is considered to have control
over the applicant pursuant to subsection (b)(2), a record of previous
issuances and denials of a gambling‑related license or application in the
State or in any other jurisdiction;

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(5)
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For a sports
wagering operator applicant, proof that the sports wagering system has been
tested and certified for use in Hawaii or another United States jurisdiction by
an independent testing laboratory within the last six months; and

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(6)
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Any other
information that the department may require by rule.

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(b)
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The following persons shall be considered to have control of an
applicant or a licensee:

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(1)
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Each corporate
holding company, parent company, or subsidiary company of a corporate applicant
or licensee and each person who owns fifteen per cent or more of the corporate
applicant or licensee and who has the ability to control the activities of the
corporate applicant or licensee or elect a majority of the board of directors
of that corporate applicant or licensee, except for a bank or other licensed
lending institution that holds a mortgage or other lien acquired in the
ordinary course of business;

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(2)
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Each person
associated with a noncorporate applicant or licensee that directly or
indirectly holds a beneficial or proprietary interest in the noncorporate
applicant's or licensee's business operation or that the department otherwise
determines has the ability to control the noncorporate applicant or licensee;
and

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(3)
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Any executive,
employee, or agent of an applicant or a licensee who has ultimate
decision-making authority over the conduct of the applicant's or licensee's
sports wagering operations in the State.

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(c)
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The department shall request a criminal history record check in the form
prescribed by the department and submit fingerprints for a national criminal
records check against the national criminal history background check
system.
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The fingerprints shall be
furnished by all persons required to be named in the application and shall be
accompanied by a signed authorization for the release of information by a law
enforcement agency in the State and the Federal Bureau of Investigation;
provided that an individual who has submitted to a criminal history record
check in the State or any other state within the previous twelve months shall
not be required to submit to another criminal history record check; provided
further that the individual shall submit the results of the previous criminal
history record check to the department and affirm that there has been no
material change in the individual's criminal history since the time of the
previous criminal history record check.

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(d)
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A person licensed under this chapter shall give the department written
notice within thirty days of any material change to any information provided in
the licensee's application for a license or renewal, including any change in
the identity of persons considered to have control of the licensee under
subsection (b).

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(e)
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The department shall keep information, records, interviews, reports,
statements, memoranda, or other data supplied to or used by the department in
the course of its review or investigation of an applicant for a sports wagering
operator license confidential to the extent the information, records,
interviews, reports, statements, memoranda, or other data falls within an
exception to public disclosure under chapter 92F.
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The department shall also keep confidential
information pertaining to any applicant or licensee to the extent the
information falls within an exception to public disclosure under chapter 92F.

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� -4
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Denial of license; reprimand, suspension, and
revocation.
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The department may deny
a license to any applicant, reprimand any licensee, or suspend or revoke a
license if:

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(1)
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The applicant or
licensee has knowingly made a false statement of material fact to the
department;

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(2)
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The applicant or
licensee has intentionally not disclosed the existence or identity of other
persons that have control of the applicant or licensee as required by section
-3;

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(3)
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The applicant or
licensee has had a license revoked by any government authority responsible for
the regulation of gambling or gaming activities;

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(4)
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The applicant or
licensee has been convicted of a crime of moral turpitude, gambling-related
offense, theft or fraud offense, or has otherwise demonstrated, either by a
police record or other satisfactory evidence, a lack of respect for law and
order;

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(5)
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The applicant or
licensee has not demonstrated, to the satisfaction of the department, financial
responsibility sufficient to adequately meet the requirements of the licensed
business or proposed business; or

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(6)
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An applicant or
licensee has not met the requirements of this section or any other provision of
this chapter.

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� -5
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Sports wagering operator license; issuance;
fees; term of license; temporary license.
�

(a)
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The department shall issue a
minimum of six sports wagering operator licenses to applicants that meet all
requirements of this section, section -3, and rules adopted
under this chapter and that have not violated any provision of this chapter;
provided that this section shall not be interpreted to direct the department to
issue a license to an unqualified applicant.
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The department shall establish a universal start date for sports
wagering operators that is no later than one hundred eighty days after the
effective date of this Act.
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No person
shall offer sports wagering in the State before the universal start date.
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All qualified gaming entities that submit an
application within thirty days of the date on which the department first begins
to accept that type of application shall be given an equal opportunity to
commence offering, conducting, or operating sports wagering on the same day.

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(b)
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Only a qualified gaming entity shall be eligible to apply for a sports
wagering operator license.

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(c)
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A sports wagering operator license granted by the department pursuant to
this section shall grant a licensee the lawful authority to conduct sports
wagering through a mobile application or digital platform approved by the
department and any rules adopted under this chapter.

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(d)
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The fee for an initial or a renewal sports wagering operator license
shall be $500,000; provided that the fee shall be retained by the department
for the costs of administering this chapter.
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In addition to the license fee, the department may charge a processing
fee for an initial or renewal sports wagering operator license in an amount
equal to the projected cost of processing the application and performing any
background investigations.
�
If the actual
cost exceeds the projected cost, an additional fee may be charged to meet the
actual cost; provided that if the projected cost exceeds the actual cost, the
difference may be refunded to the applicant or licensee.

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(e)
�

Except as provided in subsection (f), a license granted or renewed under
this section shall be valid for five years, unless sooner revoked by the
department pursuant to section -4.

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(f)
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An applicant for a sports wagering operator license may submit with the
application a request to the department to commence sports wagering through a
temporary license subject to the universal start date in subsection (a);
provided that this request shall include the initial license fee of $500,000
payable to the department.
�
Upon
receiving a request for a temporary license, the department shall review the
request.
�
If the department determines
that the entity requesting the temporary license is a qualified gaming entity,
meets the requirements established by rule for a temporary license, has paid
the initial license fee, and has submitted an application for a sports wagering
operator license and the department is not aware of any reason the applicant is
ineligible for a license under this section, the department shall, subject to
the limitations and requirements of subsection (a), issue a temporary sports
wagering operator license to the qualified gaming entity.
�
A temporary sports wagering operator license
issued under this subsection shall be valid for three years or until a final
determination on the sports wagering operator license application is made,
whichever is sooner.
�
If after
investigation the department determines that the applicant is eligible for a
sports wagering operator license under this chapter, the department shall issue
the initial sports wagering operator license, at which time the temporary
license shall be terminated.
�
No
additional fee shall be required for the issuance of the initial sports
wagering operator license for a temporary license; however, the initial license
expiration date shall be five years from the date on which the temporary
license was issued, and regular renewal periods shall run from that date.
�
If after investigation the department
determines that the applicant is not eligible for a sports wagering operator
license under this chapter, the department shall revoke the temporary license,
refund the initial license fee on a pro rata basis for the unused portion of the
initial five-year license term, and shall not issue a sports wagering operator
license.
�
Sports wagering conducted under
the authority of a temporary license shall comply with the sports wagering
operator's house rules adopted pursuant to section ‑7.

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� -6
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Sports wagering supplier license; issuance;
fees; term of license; temporary license.
�

(a)
�
The department shall issue a
sports wagering supplier license upon finding that the applicant meets all the
requirements of this section, section -3, and rules adopted
under this chapter.

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(b)
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An applicant for a sports wagering supplier license shall demonstrate
that the equipment, systems, or services that the applicant plans to offer to a
sports wagering operator conform to standards established by the department by
rule.
�
The department may accept approval
by another jurisdiction that is specifically determined by the department to
have similar standards for equipment, systems, or services as evidence that the
applicant meets the standards established by the department.

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(c)
�

A sports wagering supplier license granted by the department pursuant to
this section shall grant a licensee the lawful authority to sell or lease
sports wagering equipment, systems, or services to sports wagering operators in
the State within the terms and conditions of the license and any rules adopted
under this chapter.

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(d)
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The fee for an initial or a renewal sports wagering supplier license
shall be $10,000; provided that the fee shall be retained by the department for
the costs of administering this chapter.
�

In addition to the license fee, the department may charge a processing
fee for an initial or a renewal license in an amount equal to the projected
cost of processing the application and performing any background investigations.
�
If the actual cost exceeds the projected
cost, an additional fee may be charged to meet the actual cost; provided that
if the projected cost exceeds the actual cost, the difference may be refunded
to the applicant or licensee.

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(e)
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Except as provided in subsection (f), a license granted or renewed under
this section shall be valid for five years unless sooner revoked by the
department under section ‑4.

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(f)
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An applicant for a sports wagering supplier license may submit with the
application a request for a temporary license, which shall include the initial
license fee of $10,000.
�
If the
department determines that the applicant is qualified under subsection (b),
meets the requirements established by rule for a temporary license, and has
paid the initial license fee for a temporary license and the department is not
aware of any reason the applicant is ineligible for a license under this
section, the department shall issue a temporary sports wagering supplier
license.
�
A temporary sports wagering
supplier license issued under this subsection shall be valid for three years or
until a final determination on the sports wagering supplier license application
is made, whichever is sooner.
�
If after
investigation the department determines that the applicant is eligible for a
sports wagering supplier license under this chapter, the department shall issue
the initial sports wagering supplier license, at which time the temporary
license shall be terminated.
�
If after
investigation the department determines that the applicant is not eligible for
a sports wagering supplier license under this chapter, the department shall
revoke the temporary license and shall not issue a sports wagering supplier
license.

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� -7
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Sports wagering operator; house rules.
�
(a)
�
A
sports wagering operator shall adopt comprehensive house rules for game play
governing sports wagering transactions with its patrons.
�
The rules shall specify the amounts to be
paid on winning wagers; the circumstances under which the sports wagering
operator will void a bet; treatment of errors, late bets, and related
contingencies; and the effect of schedule changes.
�
The department shall approve a sports
wagering operator's house rules before implementation by the sports wagering
operator.

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(b)
�

The house rules, together with any other information the department
determines to be appropriate, shall be available in the sports wagering system.

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� -8
�
Sports wagering operator; duties.
�
A sports wagering operator shall:

����
(1)
�
Employ a
monitoring system using software to identify irregularities in volume or odds
swings that could signal suspicious activity that requires further
investigation; provided that the suspicious activity shall be promptly reported
to and investigated by the department; provided further that monitoring system
requirements and specifications shall be consistent with industry standards;

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(2)
�
Promptly report to
the department any facts or circumstances related to the operation of a
licensee that constitute a violation of federal or state law and immediately
report any suspicious betting over a threshold amount, to be set by the sports
wagering operator and approved by the department;

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(3)
�
Conduct all sports
wagering activities and functions in a manner that does not pose a threat to
the public health, safety, or welfare of the residents of the State;

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(4)
�
Keep current in
all payments and obligations to the department;

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(5)
�
Prevent any person
from tampering with or interfering with any sports wagering, to the extent it
is within commercially reasonably industry requirements and standards;

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(6)
�
Ensure that sports
wagering occurs using only an approved mobile application or digital platform;

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(7)
�
Conspicuously
display in all advertising for sports wagering the availability of the
toll-free helpline "1‑800-GAMBLER" or a successor phone number;

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(8)
�
At all times,
maintain sufficient cash and other supplies to conduct sports wagering;

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(9)
�
Maintain daily
records showing the gross sports wagering receipts and adjusted gross sports
wagering receipts of the licensee; and

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(10)
�
Timely file with
the department any additional reports required by this chapter or by rule
adopted under this chapter.

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� -9
�
Sports wagering agreements.
�
(a)
�

The department may:

����
(1)
�
Enter into sports
wagering agreements with other states, territories, nations, jurisdictions,
governments, or other entities to accept wagers from individuals located
outside the State; provided that entering into the sports wagering agreement
shall not violate federal or state law; and

����
(2)
�
Take all necessary
actions to ensure that any sports wagering agreement entered into pursuant to
this section becomes effective.

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(b)
�

The department may adopt rules pursuant to chapter 91 to implement this
section.

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� -10
�
Acceptance of wagers; sports wagering
accounts; excluded persons.
�
(a)
�
A sports wagering operator shall accept
wagers on wagering events only through an approved mobile application or
digital platform or a patron's sports wagering account using an approved mobile
application or digital platform.
�
The
branding for each approved mobile application or digital platform shall be
determined by the sports wagering operator.

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(b)
�

A sports wagering account may be established through an approved mobile
application or digital platform.
�
A
sports wagering operator shall allow patrons to fund a sports wagering account
using:

����
(1)
�
A credit or debit
card;

����
(2)
�
Bonuses or
promotions;

����
(3)
�
Electronic bank
transfer;

����
(4)
�
An online or
mobile payment system that supports online money transfers; and

����
(5)
�
Any other means
approved by the department.

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(c)
�

A person placing a wager shall be at least twenty-one years of age.
�
A person placing a wager shall be physically
located in the State unless the department has entered into a sports wagering
agreement pursuant to section -9 to accept wagers from
individuals located outside the State.
�

No person shall offer sports wagering at a physical location via kiosks,
computer terminals, or other means established for that purpose.

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(d)
�

A sports wagering operator may accept layoff wagers placed by other
sports wagering operators and may place layoff wagers with other sports
wagering operators as long as a sports wagering operator that places a wager
with another sports wagering operator informs the sports wagering operator
accepting the wager that the wager is being placed by a sports wagering
operator and discloses the sports wagering operator's identity.

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(e)
�

The department shall establish a voluntary exclusion program for any
individual to voluntarily exclude themselves from sports wagering.
�
Sports wagering operators shall use reasonable
means to comply with the exclusion of individuals participating in the
voluntary exclusion program by the department.

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(f)
�

The department shall adopt rules to establish the voluntary exclusion
program, including the following:

����
(1)
�
Verification of
the individual's request to be placed in the voluntary exclusion program and
for how long, up to and including that individual's lifetime;

����
(2)
�
How information
regarding the identity of individuals who are in the voluntary exclusion
program shall be disseminated to sports wagering operators;

����
(3)
�
How an individual
in the voluntary exclusion program may petition the department for removal from
the voluntary exclusion program;

����
(4)
�
The means by which
sports wagering operators and their agents shall make all reasonable efforts to
cease direct marketing efforts to individuals participating in the voluntary
exclusion program; and

����
(5)
�
The means by which
the department shall make available to all sports wagering operators the names
of the individuals participating in the voluntary exclusion program; provided
that the names shall be made available at least quarterly.

����
(g)
�

The names of the individuals participating in the voluntary exclusion
program shall be treated as confidential by each sports wagering operator.
�
Sports wagering operators conducting sports
wagering in another state may share the information provided under this section
with its agents and affiliates in other states for excluding individuals
participating in the voluntary exclusion program.

����
(h)
�

No employee of a sports wagering operator shall place a wager on any
wagering event through an unapproved or approved mobile application or digital
platform of that employee's employer.

����
� -11
�
Sports wagering revenues; tax.
�
(a)
�

For the privilege of
holding a license to engage
in sports wagering as a sports wagering operator
, the tax imposed by
section 237-13(9) shall be levied on the licensee.
�
The accrual method of accounting shall be
used for purposes of calculating the amount of the tax owed by the licensee.
�
The department of taxation
shall adopt rules and develop any forms necessary to carry
out enforcement of this section.
�

This tax shall be in lieu of all other taxes imposed on the operation of
sports wagering or on the proceeds from the operation of sports wagering in the
State.
�
The tax collected under section
237-13(9) on the total adjusted gross sports wagering receipts shall be allocated
as follows:

����
(1)
�
Two per cent to the university of Hawaii
system to be distributed to the university of Hawaii at Manoa athletic
department;

����
(2)
�
Two per cent to a Native Hawaiian
organization;

����
(3)
�
One per cent to the Hawaii Employees Lifeline
Program, an affiliate of the Hawaii State AFL-CIO; and

����
(4)
�
Ten per cent to the general fund.

����
(b)
�

Of all taxes collected pursuant to this section:

����
(1)
�
Seven per cent shall be deposited into the
problem gambling prevention and treatment special fund established under
section -12; and

����
(2)
�
Seven
per cent shall be used for programs that support education in the State.

����
� -12
�
Problem gambling prevention and treatment
special fund.
�
(a)
�
There shall be established the problem
gambling prevention and treatment special fund to be administered by the
department of health into which shall be deposited:

����
(1)
�
Appropriations by
the legislature to the special fund; and

����
(2)
�
The portion of
taxes collected under section -11 for deposit into the
problem gambling prevention and treatment special fund.

Any interest and moneys earned on the investments
shall be credited to the special fund.
�

Notwithstanding any other provision of law to the contrary, any moneys
remaining in the special fund at the end of the biennium shall not revert to
the credit of the general fund of the State.

����
(b)
�

Subject to legislative appropriation, moneys in the problem gambling
prevention and treatment special fund shall be expended by the department of
health for:

����
(1)
�
Counseling and
other support services for disordered and problem gamers;

����
(2)
�
Developing and
implementing problem gaming treatment and prevention programs; and

����
(3)
�
Creating and
disseminating responsible gaming education and messages.

����
� -13
�
Civil violation.
�
Except as provided in section
-14, a violation of any provision of this chapter shall be a
civil violation.
�
The department may
impose a fine of no more than $5,000 on any person who violates this chapter or
$10,000 for all violations resulting from the same occurrence of events.
�
Fines imposed under this chapter shall not be
limited to persons licensed under this chapter.

����
� -14
�
Unlicensed sports wagering; penalties.
�
(a)
�
It
shall be unlawful for any person to
conduct sports
wagering without a valid license
issued pursuant to this chapter.

����
(b)
�

Any person convicted of violating this section for an offense and who:

����
(1)
�
Does not have any
prior conviction under this section or under part III of chapter 712, shall be
guilty of a misdemeanor; provided that in addition to any other penalties
imposed, the person shall be subject to a fine of no less than $10,000;

����
(2)
�
Has one prior
conviction under this section or under part III of chapter 712, shall be guilty
of a class C felony; provided that in addition to any other penalties imposed,
the person shall be subject to a fine of no less than $50,000; and

����
(3)
�
Has two or more
prior convictions under this section or under part III of chapter 712, shall be
guilty of a class B felony; provided that in addition to any other penalties
imposed, the person shall be subject to a fine of no less than $100,000;

����
� -15
�
Exemption from gambling.
�
Sports wagering operated by a sports wagering
operator licensed under and in compliance with this chapter shall not
constitute a gambling offense under part III of chapter 712.
�
Fantasy sports contests as defined under this
chapter shall not constitute a gambling offense under part III of chapter
712."

����
SECTION
2
.
�
Section 237-13,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�237-13
�
Imposition of tax.
�
There is hereby levied and shall be assessed
and collected annually privilege taxes against persons on account of their
business and other activities in the State measured by the application of rates
against values of products, gross proceeds of sales, or gross income, whichever
is specified, as follows:

����
(1)
�
Tax on
manufacturers.

���������
(A)
�
Upon every person
engaging or continuing within the State in the business of manufacturing,
including compounding, canning, preserving, packing, printing, publishing,
milling, processing, refining, or preparing for sale, profit, or commercial
use, either directly or through the activity of others, in whole or in part,
any article or articles, substance or substances, commodity or commodities, the
amount of the tax to be equal to the value of the articles, substances, or
commodities, manufactured, compounded, canned, preserved, packed, printed,
milled, processed, refined, or prepared for sale, as shown by the gross
proceeds derived from the sale thereof by the manufacturer or person
compounding, preparing, or printing them, multiplied by one-half of one per
cent[
.
]
; and

���������
(B)
�
The measure of the tax on manufacturers [
is
]

shall be
the value of the entire product for sale
[
.
]
;

����
(2)
�
Tax on business of
selling tangible personal property; producing.

���������
(A)
�
Upon every person engaging or continuing in
the business of selling any tangible personal property whatsoever, there is
likewise hereby levied, and shall be assessed and collected, a tax equivalent
to four per cent of the gross proceeds of sales of the business; provided that,
in the case of a wholesaler, the tax shall be equal to one-half of one per cent
of the gross proceeds of sales of the business; [
and
] provided further
that insofar as the sale of tangible personal property is a wholesale sale
under section 237-4(a)(8), the tax shall be one-half of one per cent of the
gross proceeds.
�
Upon every person
engaging or continuing within this State in the business of a producer, the tax
shall be equal to one-half of one per cent of the gross proceeds of sales of
the business, or the value of the products, for sale
[
.
]
;

���������
(B)
�
Gross proceeds of
sales of tangible property in interstate and foreign commerce shall constitute
a part of the measure of the tax imposed on persons in the business of selling
tangible personal property, to the extent, under the conditions, and [
in
accordance with
]
under
the provisions of the Constitution of the
United States and the Acts of the Congress of the United States which may be
now in force or may be hereafter adopted, and whenever there occurs in the
State an activity to which, under the Constitution and Acts of Congress, there
may be attributed gross proceeds of sales, the gross proceeds shall be so
attributed[
.
]
;

���������
(C)
�
No manufacturer or producer, engaged in such
business in the State and selling the manufacturer's or producer's products for
delivery outside of the State (for example, consigned to a mainland purchaser
via common carrier f.o.b. Honolulu), shall be required to pay the tax imposed
in this chapter for the privilege of so selling the products, and the value or
gross proceeds of sales of the products shall be included only in determining
the measure of the tax imposed upon the manufacturer or producer
[
.
]
;

���������
(D)
�
A manufacturer or producer, engaged in such
business in the State, shall pay the tax imposed in this chapter for the
privilege of selling its products in the State, and the value or gross proceeds
of sales of the products, thus subjected to tax, may be deducted insofar as
duplicated as to the same products by the measure of the tax upon the
manufacturer or producer for the privilege of manufacturing or producing in the
State; provided that no producer of agricultural products who sells the
products to a purchaser who will process the products outside the State shall
be required to pay the tax imposed in this chapter for the privilege of
producing or selling those products
[
.
]
;

���������
(E)
�
A taxpayer selling to a federal cost-plus
contractor may make the election provided for by paragraph (3)(C), and in that
case the tax shall be computed pursuant to the election, notwithstanding this
paragraph or paragraph (1) to the contrary
[
.
]
; and

���������
(F)
�
The department, by rule, may require that a
seller take from the purchaser of tangible personal property a certificate, in
a form prescribed by the department, certifying that the sale is a sale at
wholesale; provided that:

�������������
(i)
�
Any purchaser who
furnishes a certificate shall be obligated to pay to the seller, upon demand,
the amount of the additional tax that is imposed upon the seller whenever the
sale in fact is not at wholesale; and

������������
(ii)
�
The absence of a certificate in itself shall
give rise to the presumption that the sale is not at wholesale unless the sales
of the business are exclusively at wholesale
[
.
]
;

����
(3)
�
Tax upon
contractors.

���������
(A)
�
Upon every person
engaging or continuing within the State in the business of contracting, the tax
shall be equal to four per cent of the gross income of the business[
.
]
;

���������
(B)
�
In computing the tax levied under this
paragraph, there shall be deducted from the gross income of the taxpayer so
much thereof as has been included in the measure of the tax levied under
subparagraph (A), on
another taxpayer who is a contractor, as defined in
section 237-6; provided that any person claiming a deduction under this
paragraph shall be required to show in the person's return the name and general
excise number of the person paying the tax on the amount deducted by the
person[
.
]
;

���������
(C)
�
In computing the tax levied under this
paragraph against any federal cost-plus contractor, there shall be excluded
from the gross income of the contractor so much thereof as fulfills the
following requirements:

�������������
(i)
�
The gross income exempted shall constitute
reimbursement of costs incurred for materials, plant, or equipment purchased
from a taxpayer licensed under this chapter, not exceeding the gross proceeds
of sale of the taxpayer on account of the transaction; and

������������
(ii)
�
The taxpayer making the sale shall have
certified to the department that the taxpayer is taxable with respect to the
gross proceeds of the sale, and that the taxpayer elects to have the tax on
gross income computed the same as upon a sale to the state government
[
.
]
;
and

���������
(D)
�
A person who, as a business or as a part of a
business in which the person is engaged, erects, constructs, or improves any
building or structure, of any kind or description, or makes, constructs, or
improves any road, street, sidewalk, sewer, or water system, or other
improvements on land held by the person (whether held as a leasehold, fee
simple, or otherwise), upon the sale or other disposition of the land or
improvements, even if the work was not done pursuant to a contract, shall be
liable to the same tax as if engaged in the business of contracting, unless the
person shows that at the time the person was engaged in making the improvements
the person intended, and for the period of at least one year after completion
of the building, structure, or other improvements the person continued to
intend to hold and not sell or otherwise dispose of the land or
improvements.
�
The tax in respect of the
improvements shall be measured by the amount of the proceeds of the sale or
other disposition that is attributable to the erection, construction, or
improvement of such building or structure, or the making, constructing, or
improving of the road, street, sidewalk, sewer, or water system, or other
improvements.
�
The measure of tax in
respect of the improvements shall not exceed the amount [
which
]
that

would have been taxable had the work been performed by another, subject as in
other cases to the deductions allowed by subparagraph (B).
�
Upon the election of the taxpayer, this
paragraph may be applied notwithstanding that the improvements were not made by
the taxpayer, or were not made as a business or as a part of a business, or
were made with the intention of holding the same.
�
However, this paragraph shall not apply in
respect of any proceeds that constitute or are in the nature of rent, which
shall be taxable under paragraph (9); provided that insofar as the business of
renting or leasing real property under a lease is taxed under section 237-16.5,
the tax shall be levied by section 237-16.5
[
.
]
;

����
(4)
�
Tax upon theaters,
amusements, radio broadcasting stations, etc.

���������
(A)
�
Upon every person
engaging or continuing within the State in the business of operating a theater,
opera house, moving picture show, vaudeville, amusement park, dance hall,
skating rink, radio broadcasting station, or any other place at which
amusements are offered to the public, the tax shall be equal to four per cent
of the gross income of the business, and in the case of a sale of an amusement
at wholesale under section 237‑4(a)(13), the tax shall be one-half of one
per cent of the gross income[
.
]
; and

���������
(B)
�
The department may require that the person
rendering an amusement at wholesale take from the licensed seller a
certificate, in a form prescribed by the department, certifying that the sale
is a sale at wholesale; provided that:

�������������
(i)
�
Any licensed
seller who furnishes a certificate shall be obligated to pay to the person
rendering the amusement, upon demand, the amount of additional tax that is
imposed upon the seller whenever the sale is not at wholesale; and

������������
(ii)
�
The absence of a certificate in itself shall
give rise to the presumption that the sale is not at wholesale unless the
person rendering the sale is exclusively rendering the amusement at wholesale
[
.
]
;

����
(5)
�
Tax upon sales representatives, etc.
�
Upon every person classified as a
representative or purchasing agent under section 237-1, engaging or continuing
within the State in the business of performing services for another, other than
as an employee, there is likewise hereby levied and shall be assessed and
collected a tax equal to four per cent of the commissions and other
compensation attributable to the services so rendered by the person
[
.
]
;

����
(6)
�
Tax on service business.

���������
(A)
�
Upon every person
engaging or continuing within the State in any service business or calling
including professional services not otherwise specifically taxed under this
chapter, there is likewise hereby levied and shall be assessed and collected a
tax equal to four per cent of the gross income of the business, and in the case
of a wholesaler under section 237-4(a)(10), the tax shall be equal to one-half
of one per cent of the gross income of the business[
.
]
;

���������
(B)
�
The department may require that the person
rendering a service at wholesale take from the licensed seller a certificate,
in a form prescribed by the department, certifying that the sale is a sale at
wholesale; provided that:

�������������
(i)
�
Any licensed
seller who furnishes a certificate shall be obligated to pay to the person
rendering the service, upon demand, the amount of additional tax that is
imposed upon the seller whenever the sale is not at wholesale; and

������������
(ii)
�
The absence of a certificate in itself shall
give rise to the presumption that the sale is not at wholesale unless the
person rendering the sale is exclusively rendering services at wholesale
[
.
]
;

���������
(C)
�
Where any person is engaged in the business of
selling interstate or foreign common carrier telecommunication services within
and without the State, other than as a home service provider, the tax shall be
imposed on that portion of gross income received by a person from service [
which
]

that
is originated or terminated in [
this
]
the
State and
is charged to a telephone number, customer, or account in [
this
]
the

State notwithstanding any other state law (except for the exemption under
section 237-23(a)(1)) to the contrary.
�

If, under the Constitution and laws of the United States, the entire
gross income as determined under this paragraph of a business selling
interstate or foreign common carrier telecommunication services cannot be
included in the measure of the tax, the gross income shall be apportioned as
provided in section 237-21; provided that the apportionment factor and formula
shall be the same for all persons providing those services in the State
[
.
]
;
and

���������
(D)
�
Where any person is engaged in the business of
a home service provider, the tax shall be imposed on the gross income received
or derived from providing interstate or foreign mobile telecommunications
services to a customer with a place of primary use in [
this
]
the

State when the services originate in one state and terminate in another state,
territory, or foreign country; provided that all charges for mobile
telecommunications services [
which
]
that
are billed by or for the
home service provider are deemed to be provided by the home service provider at
the customer's place of primary use, regardless of where the mobile
telecommunications originate, terminate, or pass through; provided further that
the income from charges specifically derived from interstate or foreign mobile
telecommunications services, as determined by books and records that are kept
in the regular course of business by the home service provider in accordance
with section 239-24, shall be apportioned under any apportionment factor or
formula adopted under subparagraph (C).
�

Gross income shall not include:

�������������
(i)
�
Gross receipts
from mobile telecommunications services provided to a customer with a place of
primary use outside
[
this
]
the

State;

������������
(ii)
�
Gross receipts from mobile telecommunications
services that are subject to the tax imposed by chapter 239;

�����������
(iii)
�
Gross receipts from mobile telecommunications
services taxed under section 237-13.8; and

������������
(iv)
�
Gross receipts of a home service provider
acting as a serving carrier providing mobile telecommunications services to
another home service provider's customer
.

�������������
For the purposes of this
paragraph, "charges for mobile telecommunications services",
"customer", "home service provider", "mobile
telecommunications services", "place of primary use", and
"serving carrier" have the same meaning as in section 239-22[
.
]
;

����
(7)
�
Tax on insurance
producers.
�
Upon every person engaged as
a licensed producer pursuant to chapter 431, there is hereby levied and shall
be assessed and collected a tax equal to 0.15 per cent of the commissions due
to that activity[
.
]
;

����
(8)
�
Tax on receipts of sugar benefit
payments.
�
Upon the amounts received from
the United States government by any producer of sugar (or the producer's legal
representative or heirs), as defined under and by virtue of the Sugar Act of
1948, as amended, or other Acts of the Congress of the United States relating
thereto, there is hereby levied a tax of one-half of one per cent of the gross
amount received; provided that the tax levied hereunder on any amount so
received and actually disbursed to another by a producer in the form of a
benefit payment shall be paid by the person or persons to whom the amount is
actually disbursed, and the producer actually making a benefit payment to
another shall be entitled to claim on the producer's return a deduction from the
gross amount taxable hereunder in the sum of the amount so disbursed.
�
The amounts taxed under this paragraph shall
not be taxable under any other paragraph, subsection, or section of this
chapter
[
.
]
;

����
(9)
�
Tax
on licensed sports wagering.
�
Upon every
person engaged in sports wagering as a licensed sports wagering operator or
sports wagering supplier in the State pursuant to chapter ,
there is hereby levied and shall be assessed and collected a tax equal to
fifteen per cent of the adjusted gross sports wagering
receipts
.
�
For purposes of this
paragraph, "adjusted gross sports wagering receipts" has the same
meaning as defined in section -1; and

���
[
(9)
]

(10)
�

Tax on other business.
�
Upon every
person engaging or continuing within the State in any business, trade,
activity, occupation, or calling not included in the preceding paragraphs or
any other provisions of this chapter, there is likewise hereby levied and shall
be assessed and collected, a tax equal to four per cent of the gross income
thereof.
�
In addition, the rate
prescribed by this paragraph shall apply to a business taxable under one or
more of the preceding paragraphs or other provisions of this chapter, as to any
gross income thereof not taxed thereunder as gross income or gross proceeds of
sales or by taxing an equivalent value of products, unless specifically
exempted."

����
SECTION
3.
�
Section
712-1220, Hawaii Revised Statutes, is amended by amending the definitions of
"contest of chance" and "gambling" to read as follows:

����
"
"Contest of chance"
means any contest, game, gaming scheme, or gaming device in which the outcome
depends in a material degree upon an element of chance, notwithstanding that
skill of the contestants may also be a factor therein.
�
"Contest of chance" does not
include sports wagering under chapter or fantasy sports
contests as defined in section -1.

����
"Gambling" [
A person
engages in gambling if he stakes or risks
]
means staking or risking

something of value upon the outcome of a contest of chance or a future
contingent event not under [
his
]
the person's
control or
influence, upon an agreement or understanding that [
he
]
the person

or someone else will receive something of value in the event of a certain
outcome.
�
[
Gambling
]
"Gambling"

does not include [
bona
]
:

����
(1)
�
Bona
fide
business transactions valid under the law of contracts, including but not
limited to contracts for the purchase or sale at a future date of securities or
commodities[
, and agreements
]
;

����
(2)
�
Agreements

to compensate for loss caused by the happening of chance, including but not
limited to contracts of indemnity or guaranty and life, health, or accident
insurance[
.
]
;

����
(3)
�
Sports wagering
authorized under chapter and placing wagers on wagering
events or portions of wagering events, the individual performance statistics of
individuals in wagering events, or any combination thereof, by any system or
method of wagering under chapter ; or

����
(4)
�
Fantasy sports
contests as defined in section -1.
"

����
SECTION
4
.
�
Section
846-2.7, Hawaii Revised Statutes, is amended by amending subsection (b) to read
as follows:

����
"
(b)
�
Criminal history record checks may be
conducted by:

����
(1)
�
The department of health or its
designee on operators of adult foster homes for individuals with developmental
disabilities or developmental disabilities domiciliary homes and their
employees, as provided by section 321-15.2;

����
(2)
�
The department of health or its
designee on prospective employees, persons seeking to serve as providers, or
subcontractors in positions that place them in direct contact with clients when
providing non-witnessed direct mental health or health care services as
provided by section 321-171.5;

����
(3)
�
The department of health or its
designee on all applicants for licensure or certification for, operators for,
prospective employees, adult volunteers, and all adults, except adults in care,
at healthcare facilities as defined in section 321-15.2;

����
(4)
�
The department of education on
employees, prospective employees, and teacher trainees in any public school in
positions that necessitate close proximity to children as provided by section
302A-601.5;

����
(5)
�
The counties on employees and
prospective employees who may be in positions that place them in close
proximity to children in recreation or child care programs and services;

����
(6)
�
The county liquor commissions on
applicants for liquor licenses as provided by section 281-53.5;

����
(7)
�
The county liquor commissions on
employees and prospective employees involved in liquor administration, law
enforcement, and liquor control investigations;

����
(8)
�
The department of human services on
operators and employees of child caring institutions, child placing
organizations, and resource family homes as provided by section 346-17;

����
(9)
�
The department of human services on
prospective adoptive parents as established under section 346‑19.7;

���
(10)
�
The department of human services or its
designee on applicants to operate child care facilities, household members of
the applicant, prospective employees of the applicant, and new employees and
household members of the provider after registration or licensure as provided
by section 346-154, and persons subject to section 346-152.5;

���
(11)
�
The department of human services on
persons exempt pursuant to section 346-152 to be eligible to provide child care
and receive child care subsidies as provided by section 346-152.5;

���
(12)
�
The department of health on operators
and employees of home and community-based case management agencies and
operators and other adults, except for adults in care, residing in community
care foster family homes as provided by section 321-15.2;

���
(13)
�
The department of human services on
staff members of the Hawaii youth correctional facility as provided by section
352-5.5;

���
(14)
�
The department of human services on
employees, prospective employees, and volunteers of contracted providers and
subcontractors in positions that place them in close proximity to youth when
providing services on behalf of the office or the Hawaii youth correctional
facility as provided by section 352D-4.3;

���
(15)
�
The judiciary on employees and
applicants at detention and shelter facilities as provided by section 571-34;

���
(16)
�
The department of corrections and
rehabilitation on employees and prospective employees, volunteers, contract
service providers, and subcontract service providers who are directly involved
with the treatment and care of, or directly involved in providing correctional
programs and services to, persons committed to a correctional facility, or
placed in close proximity to persons committed when providing services on
behalf of the department or the correctional facility, as provided by section
353-1.5 and the department of law enforcement on employees and prospective
employees whose duties involve or may involve the exercise of police powers
including the power of arrest as provided by section 353C-5;

���
(17)
�
The board of private detectives and
guards on applicants for private detective or private guard licensure as
provided by section 463-9;

���
(18)
�
Private schools and designated
organizations on employees and prospective employees who may be in positions
that necessitate close proximity to children; provided that private schools and
designated organizations receive only indications of the states from which the
national criminal history record information was provided pursuant to section
302C-1;

���
(19)
�
The public library system on employees
and prospective employees whose positions place them in close proximity to
children as provided by section 302A‑601.5;

���
(20)
�
The State or any of its branches,
political subdivisions, or agencies on applicants and employees holding a
position that has the same type of contact with children, vulnerable adults, or
persons committed to a correctional facility as other public employees who hold
positions that are authorized by law to require criminal history record checks
as a condition of employment as provided by section 78-2.7;

���
(21)
�
The department of health on licensed
adult day care center operators, employees, new employees, subcontracted
service providers and their employees, and adult volunteers as provided by
section 321-15.2;

���
(22)
�
The department of human services on
purchase of service contracted and subcontracted service providers and their
employees and volunteers, as provided by sections 346-2.5 and 346-97;

���
(23)
�
The department of human services on
foster grandparent program, senior companion program, and respite companion
program participants as provided by section 346-97;

���
(24)
�
The department of human services on
contracted and subcontracted service providers and their current and
prospective employees that provide home and community‑based services
under section 1915(c) of the Social Security Act, title 42 United States Code
section 1396n(c), or under any other applicable section or sections of the
Social Security Act for the purposes of providing home and community-based
services, as provided by section 346-97;

���
(25)
�
The department of commerce and consumer
affairs on proposed directors and executive officers of a bank, savings bank,
savings and loan association, trust company, and depository financial services
loan company as provided by section 412:3-201;

���
(26)
�
The department of commerce and consumer
affairs on proposed directors and executive officers of a nondepository
financial services loan company as provided by section 412:3-301;

���
(27)
�
The department of commerce and consumer
affairs on the original chartering applicants and proposed executive officers
of a credit union as provided by section 412:10-103;

���
(28)
�
The department of commerce and consumer
affairs on:

���������
(A)
�
Each principal of every non-corporate
applicant for a money transmitter license;

���������
(B)
�
Each person who upon approval of an
application by a corporate applicant for a money transmitter license will be a
principal of the licensee; and

���������
(C)
�
Each person who upon approval of an
application requesting approval of a proposed change in control of licensee
will be a principal of the licensee,

���������
as
provided by sections 489D-9 and 489D-15;

���
(29)
�
The department of commerce and consumer
affairs on applicants for licensure and persons licensed under title 24;

���
(30)
�
The Hawaii health systems corporation
on:

���������
(A)
�
Employees;

���������
(B)
�
Applicants seeking employment;

���������
(C)
�
Current or prospective members of the
corporation board or regional system board; or

���������
(D)
�
Current or prospective volunteers,
providers, or contractors,

���������
in
any of the corporation's health facilities as provided by section 323F-5.5;

���
(31)
�
The department of commerce and consumer
affairs on:

���������
(A)
�
An applicant for a mortgage loan
originator license, or license renewal; and

���������
(B)
�
Each control person, executive officer,
director, general partner, and managing member of an applicant for a mortgage
loan originator company license or license renewal,

���������
as
provided by chapter 454F;

���
(32)
�
The state public charter school
commission or public charter schools on employees, teacher trainees,
prospective employees, and prospective teacher trainees in any public charter
school for any position that places them in close proximity to children, as
provided in section 302D-33;

���
(33)
�
The counties on prospective employees
who work with children, vulnerable adults, or senior citizens in
community-based programs;

���
(34)
�
The counties on prospective employees
for fire department positions that involve contact with children or vulnerable
adults;

���
(35)
�
The counties on prospective employees
for emergency medical services positions that involve contact with children or
vulnerable adults;

���
(36)
�
The counties on prospective employees
for emergency management positions and community volunteers whose
responsibilities involve planning and executing homeland security measures
including viewing, handling, and engaging in law enforcement or classified meetings
and assisting vulnerable citizens during emergencies or crises;

���
(37)
�
The State and counties on employees,
prospective employees, volunteers, and contractors whose position
responsibilities require unescorted access to secured areas and equipment
related to a traffic management center;

���
(38)
�
The State and counties on employees and
prospective employees whose positions involve the handling or use of firearms
for other than law enforcement purposes;

���
(39)
�
The State and counties on current and
prospective systems analysts and others involved in an agency's information
technology operation whose position responsibilities provide them with access
to proprietary, confidential, or sensitive information;

���
(40)
�
The department of commerce and consumer
affairs on:

���������
(A)
�
Applicants for real estate appraiser
licensure or certification as provided by chapter 466K;

���������
(B)
�
Each person who owns more than ten per
cent of an appraisal management company who is applying for registration as an
appraisal management company, as provided by section 466M-7; and

���������
(C)
�
Each of the controlling persons of an
applicant for registration as an appraisal management company, as provided by
section 466M-7;

���
(41)
�
The department of health or its
designee on
:

���������
(A)
�
Individual applicants or individuals
acting on behalf of applying entities for hemp processor permits as provided
under section 328G-2; and

���������
(B)
�
All
license
applicants, licensees, employees, contractors, and prospective employees of
medical cannabis dispensaries, and individuals permitted to enter and remain in
medical cannabis dispensary facilities as provided under sections 329D-15(a)(4)
and 329D-16(a)(3);

���
(42)
�
The department of commerce and consumer
affairs on applicants for nurse licensure or license renewal, reactivation, or
restoration as provided by sections 457-7, 457-8, 457-8.5, and 457-9;

���
(43)
�
The
county police departments on applicants for permits to acquire firearms
pursuant to section 134-2, on individuals registering their firearms pursuant
to section 134-3, and on applicants for new or renewed licenses to carry a
pistol or revolver and ammunition pursuant to section 134-9;

���
(44)
�
The department of commerce and consumer
affairs on:

���������
(A)
�
Each of the controlling persons of the
applicant for licensure as an escrow depository, and each of the officers,
directors, and principals who will be in charge of the escrow depository's
activities upon licensure; and

���������
(B)
�
Each of the controlling persons of an
applicant for proposed change in control of an escrow depository licensee, and
each of the officers, directors, and principals who will be in charge of the
licensee's activities upon approval of the application,

���������
as
provided by chapter 449;

���
(45)
�
The department of taxation on current
or prospective employees or contractors who have access to federal tax
information in order to comply with requirements of federal law, regulation, or
procedure, as provided by section 231-1.6;

���
(46)
�
The department of labor and industrial
relations on current or prospective employees or contractors who have access to
federal tax information in order to comply with requirements of federal law,
regulation, or procedure, as provided by section 383-110;

���
(47)
�
The department of human services on
current or prospective employees or contractors who have access to federal tax
information in order to comply with requirements of federal law, regulation, or
procedure, and on current or prospective employees, volunteers, contractors, or
contractors' employees or volunteers, subcontractors, or subcontractors'
employees or volunteers, whose position places or would place them in close
proximity to minors, young adults, or vulnerable adults, as provided by section
346-2.5;

���
(48)
�
The child support enforcement agency on
current or prospective employees, or contractors who have access to federal tax
information in order to comply with federal law, regulation, or procedure, as
provided by section 576D-11.5;

���
(49)
�
The department of the attorney general
on current or prospective employees or employees or agents of contractors who
have access to federal tax information to comply with requirements of federal
law, regulation, or procedure, as provided by section 28‑17;

���
(50)
�
The department of commerce and consumer
affairs on each control person, executive officer, director, general partner,
and managing member of an installment loan licensee, or an applicant for an
installment loan license, as provided in chapter 480J;

���
(51)
�
The university of Hawaii on current and
prospective employees and contractors whose duties include ensuring the
security of campus facilities and persons; [
and
]

���
(52)
�
The department of business, economic
development, and tourism on applicants and licensees pursuant to chapter
; and

��
[
(52)
]

(53)
�
Any other organization, entity, or the State,
its branches, political subdivisions, or agencies as may be authorized by state
law.
"

����
SECTION 5.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION 6.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
7.
�
This Act shall take effect on July 1,
2026; provided that the amendments made to section 846-2.7(b), Hawaii Revised
Statutes, by section 4 of this Act shall not be repealed when that section is
reenacted on July 1, 2027, pursuant to section 4 of Act 110, Session Laws of
Hawaii 2024.

INTRODUCED BY:

_____________________________

Report Title:

DBEDT;
DOH; Gambling; Sports Wagering; Fantasy Sports; Licensing; Operators;
Suppliers; General Excise Tax; Problem Gambling Prevention and Treatment
Special Fund

Description:

Allows
for the regulation of sports wagering by the Department of Business, Economic
Development, and Tourism.
�
Establishes
licensing requirements for sports wagering operators and sports wagering
suppliers.
�
Establishes a general excise
tax to be levied on sports wagering operator licenses.
�
Establishes the Problem Gambling Prevention
and Treatment Special Fund to be administered and expended by the Department of
Health.
�
Specifies that legal sports
wagering and fantasy sports contests shall not be considered contests of chance
or gambling.
�
Authorizes the Department
of Business, Economic Development, and Tourism to perform criminal history
record checks on applicants and licensees relating to sports wagering.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.