REPORT TITLE:
Consolidation of DCCA Funds


DESCRIPTION:
Combines most of DCCA special and revolving funds into DCCA
compliance resolution fund, to be managed at a department-wide
level to fund DCCA operations, and that would not be subject to
central service, administrative expense reimbursement, or other
general fund deductions or reversions.  (HB1083 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1083
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
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:

 1      SECTION 1.  Section 26-9, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By amending subsection (i) to read:
 
 4      "(i)  The functions and authority previously exercised by
 
 5 the treasurer (except funds custody, cash management, debt
 
 6 management, and administering of veterans loans transferred to
 
 7 the department of budget and finance) as constituted are
 
 8 transferred to the department of commerce and consumer affairs
 
 9 established by this chapter.  [The director of commerce and
 
10 consumer affairs also shall be the commissioner of securities.]"
 
11      2.  By amending subsection (l) to read:
 
12      "(l) Any law to the contrary notwithstanding, the director
 
13           of commerce and consumer affairs may:
 
14      (1)  Establish, increase, decrease, or repeal fees relating
 
15           to any aspect of the registration, certification,
 
16           licensure, or any other administrative process for all
 
17           laws within the jurisdiction of the department.  [The
 
18           fee assessed shall bear a reasonable relationship
 
19           between the revenue derived from the fee and the cost
 

 
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 1           or value of services rendered.]  Amendments to fee
 
 2           assessments shall be made pursuant to chapter 91;
 
 3      (2)  Assess fees for copies in any form of media of the
 
 4           computerized records of the business registration
 
 5           division or for electronic access to the computerized
 
 6           information on a one-time or on-going basis.  The fees
 
 7           charged for the copies or access may include billing
 
 8           service fees, network usage fees, and computer
 
 9           consultant fees.  In adopting these fees, the director
 
10           shall take into account the intent to make the division
 
11           self-supporting.  To this end, the fees may reflect the
 
12           commercial value of the service or information
 
13           provided.  In the case of requests for records by a
 
14           nonprofit organization, the director may reduce or
 
15           waive the fees.  This paragraph shall control in any
 
16           instance where there is a conflict between this
 
17           paragraph and any other statute; and
 
18      (3)  Assess fees for copies of consumer and business
 
19           educational publications prepared or issued by the
 
20           department.  Fees collected under this paragraph shall
 
21           be deposited into the compliance resolution fund under
 
22           subsection (o).  [The fees assessed shall bear a
 
23           reasonable relationship between the revenue derived
 

 
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 1           from the fee and the cost of producing the materials
 
 2           issued.]  In the case of requests for copies by a
 
 3           nonprofit organization, the director may reduce or
 
 4           waive the fees.  For purposes of this paragraph,
 
 5           "consumer and business educational publications" does
 
 6           not include copies of statutes or administrative rules.
 
 7      The fees collected by the professional and vocational
 
 8 licensing division and the business registration division shall
 
 9 be deposited into the compliance resolution fund under subsection
 
10 (o) [and shall be used to defray administrative costs, including
 
11 personnel costs associated with these two programs and costs
 
12 incurred by supporting offices and divisions].
 
13      The director may appoint program specialists, not subject to
 
14 chapters 76 and 77, to assist with the activities of the
 
15 professional and vocational licensing division."
 
16      3.  By amending subsection (o) to read:
 
17      "(o)  Every person licensed under any chapter within the
 
18 jurisdiction of the department of commerce and consumer affairs
 
19 and every person licensed subject to chapter 485 or registered
 
20 under chapter 467B shall pay upon issuance of a license, permit,
 
21 certificate, or registration a fee and a subsequent annual fee to
 
22 be determined by the director and adjusted from time to time to
 
23 ensure that the proceeds, together with all other fines, income,
 

 
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 1 and penalties collected under this section, do not surpass the
 
 2 annual operating costs of conducting compliance resolution
 
 3 activities required under this section.  The fees may be
 
 4 collected biennially or pursuant to rules adopted under chapter
 
 5 91, and shall be deposited into the special fund established
 
 6 under this subsection.  Every filing pursuant to chapter 514E or
 
 7 section 485-6(15) shall be assessed, upon initial filing and at
 
 8 each renewal period in which a renewal is required, a fee that
 
 9 shall be prescribed by rules adopted under chapter 91, and that
 
10 shall be deposited into the special fund established under this
 
11 subsection.  Any unpaid fee shall be paid by the licensed person,
 
12 upon application for renewal, restoration, reactivation, or
 
13 reinstatement of a license, and by the person responsible for the
 
14 renewal, restoration, reactivation, or reinstatement of a
 
15 license, upon the application for renewal, restoration, or
 
16 reinstatement of the license.  If the fees are not paid, the
 
17 director may deny renewal, restoration, reactivation, or
 
18 reinstatement of the license.  The director may establish,
 
19 increase, decrease, or repeal the fees when necessary pursuant to
 
20 rules adopted under chapter 91.
 
21      There is created in the state treasury a special fund to be
 
22 known as the compliance resolution fund to be expended by the
 
23 director's designated representatives as provided by this
 

 
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 1 subsection.  Notwithstanding any law to the contrary, [the moneys
 
 2 in the fund shall consist of annual fees collected under this
 
 3 subsection, section 514A-95, penalties or fines assessed as a
 
 4 result of action brought by department personnel, and penalties,
 
 5 fines, or reimbursement of costs or attorneys' fees assessed as a
 
 6 result of actions brought for violations of chapters 480 and
 
 7 487.] all revenues, fees, and fines collected by the department
 
 8 shall be deposited into the compliance resolution fund.
 
 9 Unencumbered balances existing on June 30, 1999, in the cable
 
10 television fund, the division of consumer advocacy fund, the
 
11 financial institution examiners' revolving fund, and the special
 
12 handling fund, shall be deposited into the compliance resolution
 
13 fund.  This provision shall not apply to the drivers education
 
14 fund underwriters fee, insurance premium taxes and revenues, and
 
15 fees collected for deposit in the office of consumer protection
 
16 restitution fund under section 487-14, the real estate appraisers
 
17 fund under section 466K-1, the real estate recovery fund, the
 
18 real estate education fund, the contractors recovery fund, the
 
19 contractors education fund, the condominium management education
 
20 fund, and the public broadcasting revolving fund.  Any law to the
 
21 contrary notwithstanding, the director may use the moneys in the
 
22 fund to employ, without regard to chapters 76 and 77, hearings
 
23 officers, investigators, attorneys, accountants, and other
 

 
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 1 necessary personnel to implement this subsection.  [In addition,]
 
 2 Any law to the contrary notwithstanding, the moneys in the fund
 
 3 shall [defray all other administrative costs, including personnel
 
 4 costs of operating the regulated industries complaints office and
 
 5 costs incurred by supporting offices and divisions.] be used to
 
 6 fund the operations of the department with the exception of costs
 
 7 related to the Hawaii public broadcasting authority.  The moneys
 
 8 in the fund may be used to train personnel as the director deems
 
 9 necessary and for any other activity related to compliance
 
10 resolution.
 
11      As used in this subsection, unless otherwise required by the
 
12 context, "compliance resolution" means a determination of
 
13 whether:
 
14      (1)  Any licensee or applicant under any chapter subject to
 
15           the jurisdiction of the department of commerce and
 
16           consumer affairs has complied with that chapter;
 
17      (2)  Any person subject to chapter 485 has complied with
 
18           that chapter;
 
19      (3)  Any person submitting any filing required by chapter
 
20           514E or section 485-6(15) has complied with chapter
 
21           514E or section 485-6(15);
 

 
 
 
 
 
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 1      (4)  Any person has complied with the prohibitions against
 
 2           unfair and deceptive acts or practices in trade or
 
 3           commerce; or
 
 4      (5)  Any person subject to chapter 467B has complied with
 
 5           that chapter[.];
 
 6 and includes work involved in or supporting the above functions,
 
 7 licensing, or registration of individuals or companies regulated
 
 8 by the department, consumer protection, and other activities of
 
 9 the department.
 
10      The director shall prepare and submit an annual report to
 
11 the governor and the legislature on the use of the compliance
 
12 resolution fund.  The report shall describe expenditures made
 
13 from the fund including non-payroll operating expenses.  Any law
 
14 to the contrary notwithstanding, the compliance resolution fund
 
15 shall not be subject to sections 36-27 and 36-30, and moneys in
 
16 the fund shall not revert to the general fund."
 
17      SECTION 2.  Section 36-27, Hawaii Revised Statutes, is
 
18 amended to read:
 
19      "�36-27  Transfers from special funds for central service
 
20 expenses.  Except as provided in this section, and
 
21 notwithstanding any other law to the contrary, from time to time
 
22 the director of finance, for the purpose of defraying the
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 prorated estimate of central service expenses of government in
 
 2 relation to all special funds, except the:
 
 3      (1)  Special summer school and intersession fund under
 
 4           section 302A-1310;
 
 5      (2)  School cafeteria special funds of the department of
 
 6           education;
 
 7      (3)  Special funds of the University of Hawaii;
 
 8      (4)  State educational facilities improvement special fund;
 
 9      (5)  Convention center capital special fund under section
 
10           206X-10.5 and the convention center operations special
 
11           fund under section 206X-10.6;
 
12      (6)  Special funds established by section 206E-6;
 
13      (7)  Housing loan program revenue bond special fund;
 
14      (8)  Housing project bond special fund;
 
15      (9)  Aloha Tower fund created by section 206J-17;
 
16     (10)  Domestic violence prevention special fund under section
 
17           321-1.3;
 
18     (11)  Spouse and child abuse special account under section
 
19           346-7.5;
 
20     (12)  Spouse and child abuse special account under section
 
21           601-3.6;
 
22     (13)  Funds of the employees' retirement system created by
 
23           section 88-109;
 

 
Page 9                                                     1083
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 1     (14)  Unemployment compensation fund established under
 
 2           section 383-121;
 
 3     (15)  Hawaii hurricane relief fund established under chapter
 
 4           431P;
 
 5     (16)  Hawaii health systems corporation special funds;
 
 6     (17)  Boiler and elevator safety revolving fund established
 
 7           under section 397-5.5;
 
 8     (18)  Tourism special fund established under section
 
 9           [[]201B-11[]]; [and]
 
10     (19)  Department of commerce and consumer affairs' special
 
11           funds; and
 
12     (20)  Compliance resolution fund established under section
 
13           26-9;
 
14 shall deduct five per cent of all receipts of all other special
 
15 funds, which deduction shall be transferred to the general fund
 
16 of the State and become general realizations of the State.  All
 
17 officers of the State and other persons having power to allocate
 
18 or disburse any special funds shall cooperate with the director
 
19 in effecting these transfers.  To determine the proper revenue
 
20 base upon which the central service assessment is to be
 
21 calculated, the director shall adopt rules pursuant to chapter 91
 
22 for the purpose of suspending or limiting the application of the
 
23 central service assessment of any fund.  No later than twenty
 

 
Page 10                                                    1083
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 days prior to the convening of each regular session of the
 
 2 legislature, the director shall report all central service
 
 3 assessments made during the preceding fiscal year."
 
 4      SECTION 3.  Section 36-30, Hawaii Revised Statutes is
 
 5 amended by amending subsection (a) to read:
 
 6      "(a)  Each special fund, except the:
 
 7      (1)  Transportation use special fund established by section
 
 8           261D-1;
 
 9      (2)  Special summer school and intersession fund under
 
10           section 302A-1310;
 
11      (3)  School cafeteria special funds of the department of
 
12           education;
 
13      (4)  Special funds of the University of Hawaii;
 
14      (5)  State educational facilities improvement special fund;
 
15      (6)  Special funds established by section 206E-6;
 
16      (7)  Aloha Tower fund created by section 206J-17;
 
17      (8)  Domestic violence prevention special fund under section
 
18           321-1.3;
 
19      (9)  Spouse and child abuse special account under section
 
20           346-7.5;
 
21     (10)  Spouse and child abuse special account under section
 
22           601-3.6;
 

 
 
 
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 1     (11)  Funds of the employees' retirement system created by
 
 2           section 88-109;
 
 3     (12)  Unemployment compensation fund established under
 
 4           section 383-121;
 
 5     (13)  Hawaii hurricane relief fund established under chapter
 
 6           431P;
 
 7     (14)  Convention center capital special fund established
 
 8           under section 206X-10.5 and the convention center
 
 9           operations special fund established under section 206X-
 
10           10.6;
 
11     (15)  Hawaii health systems corporation special funds; [and]
 
12     (16)  Tourism special fund established under section
 
13           [[]201B-11[]]; and
 
14     (17)  Compliance resolution fund established under section
 
15           26-9;
 
16 shall be responsible for its pro rata share of the administrative
 
17 expenses incurred by the department responsible for the
 
18 operations supported by the special fund concerned."
 
19      SECTION 4.  Section 207-14, Hawaii Revised Statutes, is
 
20 amended by amending subsection (b) to read as follows:
 
21      "(b)  The statement filed pursuant to this section shall be
 
22 accompanied by a registration fee of $30.  The registration fee
 
23 shall be nonrefundable even in the event of a denial.  In
 

 
Page 12                                                    1083
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 1 addition, foreign lenders who are currently registered pursuant
 
 2 to this chapter shall pay an annual renewal fee of $30 in order
 
 3 to maintain the immunities and privileges granted in this
 
 4 section.  The annual renewal fee shall be due on or before
 
 5 June 30, of each calendar year.  The failure to submit the annual
 
 6 renewal fee as required shall result in the automatic
 
 7 cancellation of any statements filed pursuant to this section but
 
 8 shall not retroactively affect or impair any of the immunities
 
 9 provided by this part.  In the commissioner's discretion, the
 
10 time period for filing of a renewal fee may be extended for an
 
11 additional thirty days beyond June 30 of each calendar year if
 
12 good cause exists for such an extension.  The registration fee,
 
13 annual renewal fee, and any other charge or fee assessed under
 
14 this part shall be deposited into the [financial institution
 
15 examiners' revolving fund established under section 412:2-109.]
 
16 compliance resolution fund established pursuant to section
 
17 26-9(o)."
 
18      SECTION 5.  Section 269-33, Hawaii Revised Statutes, is
 
19 amended by amending subsection (a) to read as follows:
 
20      "(a)  There is established in the state treasury a public
 
21 utilities commission special fund to be administered by the
 
22 public utilities commission.  The proceeds of the fund shall be
 
23 used by the public utilities commission and the division of
 

 
Page 13                                                    1083
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 consumer advocacy of the department of commerce and consumer
 
 2 affairs for all expenses incurred in the administration of
 
 3 chapters 269, 271, 271G, and 486J; provided that the expenditures
 
 4 of the public utilities commission shall be in accordance with
 
 5 legislative appropriations.  On a quarterly basis, an amount not
 
 6 exceeding thirty per cent of the proceeds remaining in the fund
 
 7 after the deduction for central service expenses, pursuant to
 
 8 section 36-27, shall be allocated by the public utilities
 
 9 commission to the division of consumer advocacy[;] and deposited
 
10 in the compliance resolution fund established pursuant to section
 
11 26-9(o); provided that all moneys allocated by the public
 
12 utilities commission from the fund to the division of consumer
 
13 advocacy shall be in accordance with legislative appropriations."
 
14      SECTION 6.  Section 412:2-105, Hawaii Revised Statutes, is
 
15 amended by amending subsections (c), (d), and (e) to read as
 
16 follows:
 
17      "(c)  The commissioner shall bill the affected financial
 
18 institution for examination fees and expenses as soon as feasible
 
19 after the close of the examination or investigation.  The
 
20 affected financial institution shall pay the division of
 
21 financial institutions within thirty days following the billing.
 
22 All such payments shall be deposited to the [financial
 
23 institution examiners' revolving fund.] compliance resolution
 

 
Page 14                                                    1083
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 fund established pursuant to section 26-9(o).  All disputes
 
 2 relating to these billings between the affected financial
 
 3 institution and the commissioner shall be resolved in accordance
 
 4 with the procedures for contested cases under chapter 91.
 
 5      (d)  The commissioner, by rules adopted in accordance with
 
 6 chapter 91, may set reasonable fee amounts to be collected by the
 
 7 division in connection with its regulatory functions, including,
 
 8 without limitation, any fees for renewals, applications,
 
 9 licenses, and charters.  Unless otherwise provided by statute,
 
10 all such fees shall be deposited into the [financial institution
 
11 examiners' revolving fund.] compliance resolution fund
 
12 established pursuant to section 26-9(o).
 
13      (e)  A Hawaii financial institution that fails to make a
 
14 payment required by this section shall be subject to an
 
15 administrative fine of not more than $250 per day for each day it
 
16 is in violation of this section, which fine, together with the
 
17 amount due under this section, may be recovered pursuant to the
 
18 provisions of section 412:2-611 and shall be deposited to the
 
19 [financial institution examiners' revolving fund.] compliance
 
20 resolution fund established pursuant to section 26-9(o)."
 
21      SECTION 7.  Section 412:2-109, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "�412:2-109  [Financial institution examiners' revolving
 
 2 fund] Fees and fines; [and] appointment of examiners.(a) [There
 
 3 is established in the state treasury a separate fund designated
 
 4 as the financial institution examiners' revolving fund.] Any law
 
 5 to the contrary notwithstanding, fees and fines collected by the
 
 6 commissioner of financial institutions shall be deposited into
 
 7 the compliance resolution fund established pursuant to section
 
 8 26-9(o).
 
 9      (b)  The commissioner may appoint financial institution
 
10 examiners, not subject to chapters 76 and 77, who shall examine
 
11 the affairs, transactions, accounts, records, documents, and
 
12 assets of financial institutions.  The commissioner also may
 
13 appoint administrative support personnel, not subject to chapters
 
14 76 and 77, who shall assist and support the examiners.  The
 
15 commissioner may pay the salaries of the financial institution
 
16 examiners and administrative support personnel from the
 
17 [financial institution examiners' revolving] compliance
 
18 resolution fund.
 
19      (c)  The compliance resolution fund also may be used to
 
20 reimburse financial institution examiners and administrative
 
21 support personnel for the following expenses necessarily incurred
 
22 on account of an examination and the education and training of
 

 
 
 
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 1 financial institution examiners and administrative support
 
 2 personnel:
 
 3      (1)  Actual travel expenses in amounts customary for these
 
 4           expenses and approved by the commissioner;
 
 5      (2)  A reasonable living expense allowance at a rate
 
 6           customary for these expenses and approved by the
 
 7           commissioner; and
 
 8      (3)  Any fee or tuition necessary to attend educational and
 
 9           training conferences, workshops, seminars, and any
 
10           similar events of this nature.
 
11      (d)  The compliance resolution fund also may be used for
 
12 other expenses relating to examinations of financial institutions
 
13 and administrative costs, including personnel costs of the
 
14 division and costs incurred by supporting offices and divisions.
 
15      (e)  All persons receiving any reimbursement or compensation
 
16 from the [financial institution examiners' revolving] compliance
 
17 resolution fund shall submit to the commissioner for approval a
 
18 detailed account of all expenses and compensation necessarily
 
19 incurred.  Persons shall not receive or accept any additional
 
20 compensation on account of an examination.  In the case of an
 
21 examination, any reimbursement or compensation made by the fund
 
22 and approved by the commissioner shall be charged to the
 

 
 
 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 financial institution being examined by the commissioner and all
 
 2 receipts shall be credited to the fund.
 
 3      (f)  Moneys in the [financial institution examiners'
 
 4 revolving] compliance resolution fund shall not revert to the
 
 5 general fund.
 
 6      [(g)  Before August 16, 1995, and thereafter before July 2,
 
 7 1996, each financial institution subject to examination by the
 
 8 commissioner shall pay a sum of $250 plus $50 for each office,
 
 9 agency, and branch office maintained by the financial
 
10 institution, to the commissioner to be credited to the financial
 
11 institution examiners' revolving fund.
 
12      (h)  Before July 2, 1997, and each] Each year [thereafter]
 
13 before July 2, each financial institution subject to examination
 
14 by the commissioner shall pay a sum of $500 plus $100 for each
 
15 office, agency, and branch office maintained by the financial
 
16 institution, to the commissioner to be credited to the [financial
 
17 institution examiners' revolving] compliance resolution fund.
 
18 The commissioner may establish, increase, decrease, or repeal
 
19 this fee when necessary pursuant to rules adopted in accordance
 
20 with chapter 91."
 
21      SECTION 8.  Section 412:2-315, Hawaii Revised Statutes, is
 
22 amended by amending subsection (d) to read as follows:
 

 
 
 
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 1      "(d)  The commissioner may assess and collect from all
 
 2 affected Hawaii financial institutions their ratable share of the
 
 3 administrative costs incurred by the division in its
 
 4 administration of any emergency orders issued under this section.
 
 5 Administrative costs assessed under this section shall be
 
 6 deposited into the [financial institution examiners' revolving]
 
 7 compliance resolution fund established under section [412:2-109.]
 
 8 26-9(o).  The determination of the commissioner of which Hawaii
 
 9 financial institution or institutions are "affected" and the
 
10 proration method the commissioner chooses to employ in making
 
11 assessments under this section may be appealed to the circuit
 
12 court as provided in chapter 91 by any Hawaii financial
 
13 institution aggrieved thereby."
 
14      SECTION 9.  Section 412:2-611, Hawaii Revised Statutes, is
 
15 amended as follows:
 
16      1.  By amending the title to read:
 
17      "�412:2-611  Action to recover administrative fines; deposit
 
18 to [revolving] compliance resolution fund."
 
19      2.  By amending subsection (b) to read:
 
20      "(b)  All administrative fines collected under authority of
 
21 this chapter shall be deposited in the [financial institution
 
22 examiners' revolving] compliance resolution fund established
 
23 under section [412:2-109.] 26-9(o)."
 

 
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 1      SECTION 10.  Section 415-128, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�415-128  Fees for filing documents and issuing
 
 4 certificates.  The following fees shall be paid to the director
 
 5 upon the filing of corporate documents:
 
 6      (1)  Articles of incorporation, $100;
 
 7      (2)  Articles of amendment, $50;
 
 8      (3)  Restated articles of incorporation, $50;
 
 9      (4)  Articles of merger or consolidation, $200;
 
10      (5)  Articles of merger (subsidiary corporation), $100;
 
11      (6)  Articles of dissolution, $50;
 
12      (7)  Annual report of domestic and foreign corporations
 
13           organized for profit, $25;
 
14      (8)  Any other statement, report, certificate, application,
 
15           or other corporate document, except an annual report,
 
16           of a domestic or foreign corporation, $50;
 
17      (9)  Application for a certificate of authority, $100;
 
18     (10)  Application for a certificate of withdrawal, $50;
 
19     (11)  Reservation of corporate name, $20;
 
20     (12)  Transfer of reservation of corporate name, $20;
 
21     (13)  Good standing certificate, $25;
 

 
 
 
 
 
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 1     (14)  Special handling fee for review of corporation
 
 2           documents, excluding articles of merger or
 
 3           consolidation, $50;
 
 4     (15)  Special handling fee for review of articles of merger
 
 5           or consolidation, $150;
 
 6     (16)  Special handling fee for certificates issued by the
 
 7           department, $20 per certificate; and
 
 8     (17)  Special handling fee for certification of documents, $1
 
 9           per page.
 
10      All [special handling fees shall be credited to the special
 
11 fund established for use by the department in expediting the
 
12 processing of documents.  At least two temporary business
 
13 registration assistant I positions shall be paid out of the
 
14 special fund.] fees collected under this section shall be managed
 
15 in accordance with section 26-9(l).
 
16      The director [shall] may adjust the fees assessed under this
 
17 section, as necessary from time to time, through rules adopted
 
18 under chapter 91 [to ensure that the proceeds, together with all
 
19 other receipts of the special fund under this section do not
 
20 surpass the annual operating costs of the program.  All
 
21 unexpended and unencumbered moneys remaining on balance with the
 
22 fund at the close of each fiscal year which are deemed, by the
 
23 director of finance, to be in excess of the moneys necessary to
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 carry out the processing of corporate documents over the next
 
 2 following fiscal year shall lapse to the credit of the state
 
 3 general fund]."
 
 4      SECTION 11.  Section 415B-155, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "�415B-155  Fees for filing documents and issuing
 
 7 certificates.  The following fees shall be paid to the director
 
 8 upon the filing of corporate documents:
 
 9      (1)  Articles of incorporation, $50;
 
10      (2)  Articles of amendment, $20;
 
11      (3)  Restated articles of incorporation, $20;
 
12      (4)  Articles of merger or consolidation, $100;
 
13      (5)  Articles of dissolution, $20;
 
14      (6)  Annual report of nonprofit domestic and foreign
 
15           corporations, $5;
 
16      (7)  Any other statement, report, certificate, application,
 
17           or other corporate document, except an annual report,
 
18           of a nonprofit domestic or foreign corporation, $20;
 
19      (8)  Application for a certificate of authority, $50;
 
20      (9)  Application for a certificate of withdrawal, $20;
 
21     (10)  Reservation of corporate name, $20;
 
22     (11)  Transfer of reservation of corporate name, $20;
 
23     (12)  Good standing certificate, $20;
 

 
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 1     (13)  Special handling fee for review of corporation
 
 2           documents, excluding articles of merger or
 
 3           consolidation, $50;
 
 4     (14)  Special handling fee for review of articles of merger
 
 5           or consolidation, $150;
 
 6     (15)  Special handling fee for certificates issued by the
 
 7           department, $20 per certificate; and
 
 8     (16)  Special handling fee for certification of documents, $1
 
 9           per page.
 
10      All [special handling fees shall be credited to a special
 
11 fund which may be established for use by the department in
 
12 expediting the processing of documents.  At least two temporary
 
13 business registration assistant I positions shall be paid out of
 
14 the special fund.] fees collected under this section shall be
 
15 managed in accordance with section 26-9(l)."
 
16      SECTION 12.  Section 425-12, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "�425-12  Fee for filing documents and issuing certificates.
 
19 The following fees shall be paid to the director upon the filing
 
20 of general partnership documents:
 
21      (1)  Partnership registration statement, $25;
 
22      (2)  Partnership change of name statement, $25;
 
23      (3)  Partnership dissolution statement, $25;
 

 
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 1      (4)  Foreign general partnership registration statement,
 
 2           $25;
 
 3      (5)  Statement of change, $25;
 
 4      (6)  Application for certificate of withdrawal, $10;
 
 5      (7)  Statement of correction, $25;
 
 6      (8)  Reservation of name, $20;
 
 7      (9)  Transfer of reservation of name, $20;
 
 8     (10)  Annual statement for domestic or foreign general
 
 9           partnership, $10;
 
10     (11)  Good standing certificate, $25;
 
11     (12)  Any other statement, certificate, or other document for
 
12           a domestic or foreign general partnership, $25;
 
13     (13)  Special handling fee for review of any general
 
14           partnership document, $20;
 
15     (14)  Special handling fee for certificates issued by the
 
16           director, $20 per certificate; and
 
17     (15)  Special handling fee for certification of documents, $1
 
18           per page.
 
19      All [special handling fees shall be credited to the special
 
20 fund authorized by section 415-128.] fees collected under this
 
21 section shall be managed in accordance with section 26-9(l)."
 
22      SECTION 13.  Section 425-169, Hawaii Revised Statutes, is
 
23 amended by amending subsection (b) to read as follows:
 

 
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 1      "(b)  The following special handling fees shall be assessed
 
 2 by the director for expeditious review of the following
 
 3 documents:
 
 4      (1)  For limited liability partnerships:  certificate of
 
 5           limited liability partnership, $100; certificate of
 
 6           correction, $100; change of name statement, $100;
 
 7           partnership dissolution statement, $100; annual
 
 8           statement, $100; certification of limited liability
 
 9           partnership, $1 a page; certificate of good standing,
 
10           $100;
 
11      (2)  For foreign limited liability partnerships:
 
12           registration statement, $100; certificate of
 
13           correction, $100; withdrawal application, $100; annual
 
14           statement, $100; certification of foreign partnership,
 
15           $1 a page; certificate of good standing, $100; and
 
16      (3)  For any other certificate or document authorized by
 
17           this part, $100.
 
18      All [special handling fees shall be credited to the special
 
19 fund authorized by section 415-128.  All other] fees collected
 
20 under this section shall be managed in accordance with section
 
21 26-9(1)."
 
22      SECTION 14.  Section 425D-1107, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "�425D-1107  Fees for filing documents and issuing
 
 2 certificates.  The following fees shall be paid to the director
 
 3 upon the filing of limited partnership documents:
 
 4      (1)  Certificate of limited partnership, $50;
 
 5      (2)  Any certificate of amendment, restatement, or
 
 6           correction, $20;
 
 7      (3)  Certificate of cancellation, $20;
 
 8      (4)  Annual statement for domestic or foreign limited
 
 9           partnership, $10;
 
10      (5)  Any other certificate or document of domestic or
 
11           foreign limited partnership, $20;
 
12      (6)  Application for registration as a foreign limited
 
13           partnership, $100;
 
14      (7)  Any certificate of amendment or agent change for
 
15           foreign limited partnership, $20;
 
16      (8)  Application for certificate of withdrawal of foreign
 
17           limited partnership, $20;
 
18      (9)  Reservation of name, $20;
 
19     (10)  Transfer of reservation of name, $20;
 
20     (11)  Good standing certificate, $20;
 
21     (12)  Special handling fee for review of any limited
 
22           partnership document, $50;
 

 
 
 
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 1     (13)  Special handling fee for certificates issued by the
 
 2           director, $20 per certificate; and
 
 3     (14)  Special handling fee for certification of documents, $1
 
 4           per page.
 
 5      All [special handling fees shall be credited to the special
 
 6 fund authorized by section 415-128.] fees collected under this
 
 7 section shall be managed in accordance with section 26-9(l)."
 
 8      SECTION 15.  Section 428-1301, Hawaii Revised Statutes is
 
 9 amended to read as follows:
 
10      "�428-1301  Fees.  The following fees shall be paid to the
 
11 director upon the filing and issuance of records under this
 
12 chapter:
 
13      (1)  Articles of organization, $100;
 
14      (2)  Articles of amendment, $50;
 
15      (3)  Restated articles of organization, $50;
 
16      (4)  Articles of merger, $200;
 
17      (5)  Statement of dissociation, $50;
 
18      (6)  Articles of termination, $50;
 
19      (7)  Application for reinstatement for administratively
 
20           terminated limited liability company, $50;
 
21      (8)  Annual report, $25;
 

 
 
 
 
 
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 1      (9)  Statement of change of designated office or agent for
 
 2           service of process, or both, for limited liability
 
 3           company or foreign limited liability company, $50;
 
 4     (10)  Statement of resignation of agent for service of
 
 5           process, $50;
 
 6     (11)  Any other statement or document of a domestic or
 
 7           foreign limited liability company, $50;
 
 8     (12)  Application for certificate of authority for foreign
 
 9           limited liability company, $100;
 
10     (13)  Application for cancellation of authority of foreign
 
11           limited liability company, $50;
 
12     (14)  Reservation of name, $25;
 
13     (15)  Good standing certificate, $25;
 
14     (16)  Any other record not otherwise covered in this part,
 
15           $50;
 
16     (17)  Certified copy of any record relating to a limited
 
17           liability company or foreign limited liability company,
 
18           25 cents per page, and $10 for the certificate and
 
19           affixing the seal thereto;
 
20     (18)  Special handling fee for review of any record other
 
21           than articles of merger, $80;
 
22     (19)  Special handling fee for review of articles of merger,
 
23           $200;
 

 
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 1     (20)  Special handling fee for certificates issued by the
 
 2           director not otherwise covered by this part, $10 per
 
 3           certificate;
 
 4     (21)  Special handling fee for certification of record, $1
 
 5           per page; and
 
 6     (22)  Any service of notice, demand, or process upon the
 
 7           director as agent for service of process of a limited
 
 8           liability company or foreign limited liability company,
 
 9           $50, which amount may be recovered as taxable costs by
 
10           the party to the suit or action causing such service to
 
11           be made if such party prevails in the suit or action.
 
12      All [special handling fees shall be credited to the special
 
13 fund authorized by section 415-128.] fees collected under this
 
14 section shall be managed in accordance with section 26-9(l)."
 
15      SECTION 16.  Section 440G-15, Hawaii Revised Statutes, is
 
16 amended to read as follows: 
 
17      "�440G-15  Annual fees.(a) Each cable operator shall pay
 
18 an annual fee to be determined by the director.  The fees so
 
19 collected under this section shall be [used to offset the costs
 
20 of administering this chapter.] deposited into the compliance
 
21 resolution fund established under section 26-9(o).
 
22      (b)  The director shall adjust the fees assessed under this
 
23 section, as necessary from time to time, [to ensure that the
 

 
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 1 gross proceeds collected do not surpass the annual operating
 
 2 costs of the program.] pursuant to rules adopted in accordance
 
 3 with chapter 91."
 
 4      SECTION 17.  Section 449-14, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "�449-14  Fees.  The following fees shall be paid by
 
 7 licensed escrow depositories to the commissioner and, together
 
 8 with any administrative penalty or other charge assessed under
 
 9 this chapter, shall be deposited into the [financial institution
 
10 examiners' revolving] compliance resolution fund[:] established
 
11 pursuant to section 26-9(o):
 
12      (1)  For filing and investigation of an escrow depository's
 
13           application for license, $2,000;
 
14      (2)  For initial issuance and annual renewal of an escrow
 
15           depository's license, $100;
 
16      (3)  For initial issuance and annual renewal of a branch
 
17           office license, $50; and
 
18      (4)  For reissuance of a license or endorsement on the
 
19           license for the change in the business address of its
 
20           office, $25.
 
21      An escrow depository that fails to make a payment required
 
22 by this section shall be subject to an administrative penalty of
 

 
 
 
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 1 not more than $200 per day for each day it is in violation of
 
 2 this section."
 
 3      SECTION 18.  All Acts passed by the legislature during this
 
 4 regular session of 1999, whether enacted before or after the
 
 5 effective date of this Act, shall be amended to conform to this
 
 6 Act unless such acts specifically provide that this Act is being
 
 7 amended.
 
 8      SECTION 19.  Any Act passed by the legislature during this
 
 9 regular session of 1999, whether such Act was enacted before or
 
10 after the effective date of this Act, which creates any special
 
11 or revolving fund to be administered by the insurance
 
12 commissioner  shall not become part of the compliance resolution
 
13 fund.
 
14      SECTION 20.  Statutory material to be repealed is bracketed.
 
15 New statutory material is underscored.
 
16      SECTION 21. This Act shall take effect on July 1, 1999;
 
17 provided that:
 
18      (1)  The amendments made to sections 36-27 and 36-30 by this
 
19           Act shall not be repealed when those sections are
 
20           reenacted on July 1, 2000, pursuant to section 13 of
 
21           Act 216, Session Laws of Hawaii 1997; and
 
22      (2)  The amendments made to section 36-27 by this Act shall
 
23           not be repealed when that section is reenacted on July
 
24           31, 2003, pursuant to Section 9 of Act 142, Session
 
25           Laws of Hawaii 1998.