RELATING TO THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS.

HB453

HOUSE OF REPRESENTATIVES

H.B. NO.

453

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
.

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

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SECTION 1.
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Section
26-9, Hawaii
Revised Statutes, is amended to read as follows:

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"
�26-9

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Department of commerce and consumer affairs.
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(a)
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The
department of commerce and consumer affairs shall be headed by a single
executive to be known as the director of commerce and consumer affairs.

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(b)
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The department shall protect the interests of consumers, depositors, and
investors throughout the State.
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It shall
set standards and enforce all laws and rules governing the licensing and
operation of, and register and supervise the conduct of, trades, businesses,
and professions, including banks, insurance companies, brokerage firms, and
other financial institutions.

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(c)

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The board of acupuncture, board of
public accountancy, board of barbering and cosmetology, boxing commission, Hawaii
board of chiropractic, contractors license board, board of dentistry, board of
electricians and plumbers, elevator mechanics licensing board, board of
professional engineers, architects, surveyors, and landscape architects, board
of massage therapy, Hawaii medical board, motor vehicle industry licensing
board, motor vehicle repair industry board, board of naturopathic medicine,
board of nursing, Hawaii board of optometry, pest control board, board of
pharmacy, board of physical therapy, board of psychology, board of private
detectives and guards, real estate commission, Hawaii board of veterinary
medicine, board of speech pathology and audiology, and any board, commission,
program, or entity created pursuant to or specified by statute in furtherance
of the purpose of this section including but not limited to section 26H-4, or
chapters 484, 514B, and 514E shall be placed within the department of commerce
and consumer affairs for administrative purposes.

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The public utilities
commission shall be placed, for administrative purposes only, within the
department of commerce and consumer affairs.
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Notwithstanding section 26-9(e), (f), (g), (h), (j), (k), (l), (m), (n),
(p), (q), (r), and (s), and except as permitted by sections 269-2 and 269-3,
the department of commerce and consumer affairs shall not direct or exert
authority over the day-to-day operations or
functions
of the commission
.

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(d)
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Except as otherwise provided by this chapter, the functions, duties, and
powers, subject to the administrative control of the director of commerce and
consumer affairs, and the composition of each board and commission shall be as
provided by law.

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(e)
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Notwithstanding any provision to the contrary, the employment,
appointment, promotion, transfer, demotion, discharge, and job descriptions of
all officers and employees under the administrative control of this department
shall be determined by the director of commerce and consumer affairs subject
only to applicable personnel laws.

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(f)
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The director of commerce and consumer affairs may appoint a hearings
officer or officers not subject to chapter 76 to hear and decide any case or
controversy regarding licenses and the application and enforcement of rules
involving any of the boards, commissions, or regulatory programs within the
department of commerce and consumer affairs.
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The hearings officer or officers shall have power to issue subpoenas,
administer oaths, hear testimony, find facts, and make conclusions of law and a
recommended decision; provided that the conclusions and decisions shall be
subject to review and redetermination by the officer, board, or commission
which would have heard the case in the first instance in the absence of a
hearings officer.
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The review shall be
conducted in accordance with chapter 91.

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(g)
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The director of commerce and consumer affairs may appoint an information
officer not subject to chapter 76 who shall ensure the prompt and efficient
handling of consumer inquiries and the development of a strong consumer
education program.

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(h)
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The director may appoint a complaints and enforcement officer not
subject to chapter 76 who shall facilitate the receipt, arbitration,
investigation, prosecution, and hearing of complaints regarding any person who
furnishes commodities, services, or real estate for which a license,
registration, or certificate is required from the department or any board,
commission, or regulatory program thereunder.
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In representing the State in bringing any action to enjoin unlicensed,
unregistered, or uncertified activities, the department of commerce and
consumer affairs' attorneys shall be empowered to exercise all authority
granted to the attorney general and to the director of the office of consumer
protection under sections [
487-12, 487-14,
] 480-3.1, 480-15, 480-15.1,
480-20(c), [
and
] 480-22,
487-12, and 487-14,
as these sections
now exist and as they subsequently may be amended.
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The attorneys also shall be empowered to
exercise all authority granted to the attorney general and to the responsible
attorneys of the various counties under section 92F-13 in all cases involving
documents and records within the custody or control of the regulated industries
complaints office.

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(i)
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The functions and authority previously exercised by the treasurer
(except funds custody, cash management, debt management, and administering of
veterans loans transferred to the department of budget and finance) as
constituted are transferred to the department of commerce and consumer affairs
established by this chapter.

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(j)
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In the course of an investigation of matters affecting the interest of
consumers, depositors, or investors, or of any other matter within the
jurisdiction of the department, the director shall have the power to subpoena
witnesses, examine witnesses under oath, and require the production of books,
papers, documents, or objects that the director deems relevant or material to
the inquiry.
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Upon application by the
director, obedience to the subpoena may be enforced by the circuit court in the
county in which the person subpoenaed resides or is found in the same manner as
a subpoena issued by the clerk of a circuit court.

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The director shall appoint and commission
one or more investigators as the exigencies of the public service may
require.
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Persons appointed and
commissioned under this section may serve subpoenas and serve process and
orders pursuant to section 634-21.
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Nothing in this subsection shall be construed to entitle persons
appointed and commissioned by the director to retirement benefits applicable to
police officers under chapter 88.

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(k)
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The director may adopt, amend, or repeal rules pursuant to chapter 91 to
effectuate the purposes of all laws within the jurisdiction of the department
of commerce and consumer affairs.
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The
director's authority to adopt rules shall not modify, impair, or otherwise
affect the power of boards and commissions placed within the department of
commerce and consumer affairs for administrative purposes from adopting,
amending, or repealing rules, except as provided for in subsection (l).

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(l)
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Any law to the contrary notwithstanding, the director of commerce and
consumer affairs may:

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(1)
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Establish,
increase, decrease, or repeal fees relating to any aspect of the registration,
certification, licensure, or any other administrative process for all laws
within the jurisdiction of the department.
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Amendments to fee assessments shall be made pursuant to chapter 91;

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(2)
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Assess
fees for copies in any form of media of the computerized records of the
business registration division or for electronic access to the computerized
information on a one-time or on-going basis.
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The fees charged for the copies or access may include billing service
fees, network usage fees, and computer consultant fees.
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In adopting these fees, the director shall
take into account the intent to make the division self-supporting.
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To this end, the fees may reflect the
commercial value of the service or information provided.
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In the case of requests for records by a
nonprofit organization, the director may reduce or waive the fees.
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This paragraph shall control in any instance
where there is a conflict between this paragraph and any other statute; and

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(3)
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Assess
fees for copies of consumer and business educational publications prepared or
issued by the department.
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Fees collected
under this paragraph shall be deposited into the compliance resolution fund
under subsection (o).
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In the case of
requests for copies by a nonprofit organization, the director may reduce or
waive the fees.
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For purposes of this
paragraph, "consumer and business educational publications" does not
include copies of statutes or administrative rules.

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The fees collected by the professional and
vocational licensing division and the business registration division shall be
deposited into the compliance resolution fund under subsection (o).

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The director may appoint program
specialists, not subject to chapter 76, to assist with the activities of the
professional and vocational licensing division.

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(m)
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Notwithstanding section 92-17 or any other law to the contrary, all
boards, commissions, and regulatory programs placed within the department of
commerce and consumer affairs for administrative purposes shall delegate their
authority to receive, arbitrate, investigate, and prosecute complaints to the
department.

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(n)
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Each board and commission, as well as the director, by written order,
may delegate to the executive secretary or other personnel of the department
any of its powers or duties as it deems reasonable and proper for the
administration of the licensing laws that are within the jurisdiction of the
department of commerce and consumer affairs.
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The delegated powers and duties may be exercised by the executive
secretary or other personnel of the department in the name of the board,
commission, or the director.
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However,
neither a board, a commission, nor the director shall delegate the authority to
adopt, amend, or repeal rules or take final disciplinary action against a
licensee.

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(o)
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Every person licensed under any chapter
within the jurisdiction of the department of commerce and consumer affairs and
every person licensed subject to chapter 485A or registered under chapter 467B
shall pay upon issuance of a license, permit, certificate, or registration a
fee and a subsequent annual fee to be determined by the director and adjusted
from time to time to ensure that the proceeds, together with all other fines,
income, and penalties collected under this section, do not surpass the annual
operating costs of conducting compliance resolution activities required under
this section.
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The fees may be collected
biennially or pursuant to rules adopted under chapter 91, and shall be
deposited into the special fund established under this subsection.
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Every filing pursuant to chapter 514E or
section 485A-202(a)(26) shall be assessed, upon initial filing and at each
renewal period in which a renewal is required, a fee that shall be prescribed
by rules adopted under chapter 91, and that shall be deposited into the special
fund established under this subsection.
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Any unpaid fee shall be paid by the licensed person, upon application
for renewal, restoration, reactivation, or reinstatement of a license, and by
the person responsible for the renewal, restoration, reactivation, or
reinstatement of a license, upon the application for renewal, restoration,
reactivation, or reinstatement of the license.
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If the fees are not paid, the director may deny renewal, restoration,
reactivation, or reinstatement of the license.
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The director may establish, increase, decrease, or repeal the fees when
necessary pursuant to rules adopted under chapter 91.
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The director may also increase or decrease
the fees pursuant to section 92-28.

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There is created in the state treasury a
special fund to be known as the compliance resolution fund to be expended by
the director's designated representatives as provided by this subsection.
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Notwithstanding any law to the contrary, and
as provided by section 241-7, all revenues, fees, and fines collected by the
department shall be deposited into the compliance resolution fund.
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Unencumbered balances existing on June 30,
1999, in the cable television fund under chapter 440G, the division of consumer
advocacy fund under chapter 269, the financial institution examiners' revolving
fund, section 412:2‑109, the special handling fund, section 414-13, and
unencumbered balances existing on June 30, 2002, in the insurance regulation
fund, section 431:2-215, shall be deposited into the compliance resolution
fund.
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This provision shall not apply to
the drivers education fund underwriters fee, sections 431:10C-115 and
431:10G-107, insurance premium taxes and revenues, revenues of the workers'
compensation special compensation fund, section 386-151, the captive insurance
administrative fund, section 431:19-101.8, the insurance commissioner's
education and training fund, section 431:2-214, the medical malpractice
patients' compensation fund as administered under section 5 of Act 232, Session
Laws of Hawaii 1984, and fees collected for deposit in the office of consumer
protection restitution fund, section 487-14, the real estate appraisers fund,
section 466K-1, the real estate recovery fund, section 467-16, the real estate education
fund, section 467-19, the contractors recovery fund, section 444-26, the
contractors education fund, section 444-29, the condominium education trust
fund, section 514B-71, and the mortgage foreclosure dispute resolution special
fund, section 667-86.
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Any law to the
contrary notwithstanding, the director may use the moneys in the fund to
employ, without regard to chapter 76, hearings officers and attorneys.
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All other employees may be employed in
accordance with chapter 76.
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Any law to
the contrary notwithstanding, the moneys in the fund shall be used to fund the
operations of the department.
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The moneys
in the fund may be used to train personnel as the director deems necessary and
for any other activity related to compliance resolution.

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A separate special subaccount of the
compliance resolution fund, to be known as the post-secondary education
authorization special subaccount, shall be established for fees collected by
the department of commerce and consumer affairs pursuant to chapter 305J.
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The special subaccount shall be governed by
section 305J-19.

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As used in
this subsection, unless otherwise required by the context, "
compliance
resolution" means a determination of whether:

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(1)
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Any licensee or applicant under any
chapter subject to the jurisdiction of the department of commerce and consumer
affairs has complied with that chapter;

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(2)
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Any person subject to chapter 485A has
complied with that chapter;

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(3)
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Any person submitting any filing
required by chapter 514E or section 485A-202(a)(26) has complied with chapter
514E or section 485A-202(a)(26);

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(4)
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Any person has complied with the
prohibitions against unfair and deceptive acts or practices in trade or
commerce; or

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(5)
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Any person subject to chapter 467B has
complied with that chapter;

and includes work involved in or
supporting the above functions, licensing, or registration of individuals or
companies regulated by the department, consumer protection, and other
activities of the department.

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The director
shall
prepare and submit an annual report to the governor and
the legislature on the use of the compliance resolution fund.
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The report shall describe expenditures made
from the fund including non-payroll operating expenses.

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(p)
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Any law to the contrary notwithstanding, the department of commerce and
consumer affairs, or any board or commission placed within it for
administrative purposes, may contract with professional testing services to
prepare, administer, and grade examinations and tests for license
applicants.
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For these purposes, the
department may require applicants to pay the examination fee directly to the
testing agency.

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(q)
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Any law to the contrary notwithstanding, when any type of bond or
insurance required to be maintained by any licensee under a regulatory program
of the department of commerce and consumer affairs, or of any board or
commission assigned to the department of commerce and consumer affairs, cannot
reasonably be secured, the department, board, or commission may provide by rule
for alternative forms of security to the consumer so long as that alternate
security is no less than that provided by the type of bond or insurance
initially required.

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(r)
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Notwithstanding any other law to the contrary, the department of
commerce and consumer affairs, or any board or commission placed within it for
administrative purposes, may change any license renewal date by rules adopted
in accordance with chapter 91.

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(s)
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The director of commerce and consumer affairs may establish advisory
committees, the members of which shall serve as consultants to the boards and
to the director in their review of licensees referred for possible disciplinary
action and as experts to the department for investigations and professional
vocational licensing matters.
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Each
advisory committee shall be appointed by the director from a list of licensees
submitted annually by the board or by referral from the regulated industry for
which an advisory committee is appointed.
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Each member of the committee shall serve until a new committee is
established or until the particular case for which the member was designated a
consultant or expert has been concluded.

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All members of the advisory committee shall
serve voluntarily and without compensation, but shall be paid reasonable
allowances for travel and expenses that may be incurred as a result of
performance of their duties on the committee.
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The costs shall be paid by the department.

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Any member of the advisory committee shall
be immune from civil liability for any act done in connection with this
subsection.

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(t)
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The director of commerce and consumer affairs shall make all business
registration applications available online.
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All applications shall contain the name and contact information,
including the phone number, electronic mail address, and mailing address, of
the registering entity.
"

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SECTION 2.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

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SECTION 3.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 4.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

DCCA; Business
Registration Data; Online

Description:

Requires
the Director of Commerce and Consumer Affairs to make all business registration
applications available online.
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Requires
all applications to contain certain contact information.

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