STAND. COM. REP. NO. 1696

Honolulu, Hawaii

RE: S.C.R. No. 131

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.C.R. No. 131 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE REGULATED INDUSTRIES COMPLIANCE OFFICE TO REPORT THE ITEMIZED TOTAL AMOUNT OF FINES OR JUDGMENTS COLLECTED AND UNCOLLECTED EACH YEAR, FROM 1983 TO PRESENT, AND TO INCLUDE THAT INFORMATION IN THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS' ANNUAL COMPLIANCE RESOLUTION FUND REPORT,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Regulated Industries Complaints Office (RICO) to report the itemized total amount of fines or judgments collected and uncollected each year, from 1983 to present, and to include that information in the Director of the Department of Commerce and Consumer Affairs' (DCCA) Annual Compliance Fund Report.

Your Committee received comments on this measure from the Regulated Industries Complaints Office.

Your Committee finds that RICO is an enforcement agency within the DCCA that processes individual complaints involving persons who provide specialized trade or professional services to Hawaii consumers that require a license or certification from one of the professional or vocational boards established within the DCCA. RICO is authorized to sue members of the public if they provide consumers with services in a regulated industry without having first obtained the proper license required by law and can also pursue disciplinary action and sanctions against legitimate licensees if their conduct falls below professional or regulatory standards. The money RICO collects from the judgments, sanctions, and fines that it obtains or imposes are deposited into the Compliance Resolution Fund, along with other fees collected by DCCA, such as license issuance and renewal fees. The Director of Commerce and Consumer Affairs (Director) is authorized to use the moneys in the Compliance Resolution Fund for DCCA operations, hiring attorneys and hearing officers, training personnel, and any other activity related to compliance resolution. The Director is required to prepare and submit an annual report to the Governor and Legislature on the activity of the Compliance Resolution Fund. Although RICO collects fines and judgments each year, there are fines and judgments that go uncollected each year and in the interest of government transparency and efficiency, it is critical for the Governor and Legislature to be informed of the amount of fines and judgments that RICO collects, and what has gone uncollected, each year. Accordingly, this measure requests RICO to report the yearly total amount of fines or judgments collected and uncollected from 1983 to 2022 and to include the total collected and uncollected fines each year going forward in the Director's annual Compliance Resolution Fund report.

Your Committee has amended this measure by making a technical, nonsubstantive amendment to its title for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 131, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 131, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

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JARRETT KEOHOKALOLE, Chair