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THE SENATE |
S.B. NO. |
1130 |
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THIRTY-SECOND LEGISLATURE, 2023 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ACTIVITY DESKS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
""Ownership interest" means, with respect to any entity, any ownership interest, whether in whole or in part, in the entity and any economic rights, such as a right to distributions, net cash flow or net income, to which the owner of the ownership interests is entitled."
SECTION 2. Section 468M-2.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§468M-2.5[]]
Activity desk principal; responsibilities. (a)
Each activity desk shall designate a principal who shall have direct
management and supervision of the activity desk, including but not limited to
compliance with sections 468M-9 and 468M-10.
(b) The activity desk shall designate the activity desk principal with each registration and registration renewal and shall provide notification in writing to the department within ten days after any change in the designation of the activity desk principal.
(c) The activity desk shall disclose the name and contact information of the activity desk principal to a client trust account beneficiary upon request.
(d)
The principal and all persons with an ownership interest in the activity
desk shall be jointly and severally liable for any financial deficiency when
the activity desk's client trust account is insufficient to pay consumers or
activity partners.
[(d)] (e) For purposes of this section,
"principal" means a corporate officer or director, a partner in a
partnership, a sole proprietor, or an individual with an ownership interest in
the activity desk who shall be a signatory of any client trust account of the
activity desk."
SECTION 3. Section 468M-7, Hawaii Revised Statutes, is amended to read as follows:
"[[]§468M-7[]] Action
for damages. Any activity desk,
together with its principal and all persons with an ownership interest in the
activity desk, shall be liable to the activity provider for [a] any
violation of this chapter for any damages which result from a violation. Damages shall be awarded at the rate of [no]
not less than $1,000 for each violation.
Violations shall be calculated as follows:
(1) For
violations of [section 468M-3(1), (2), or (3),] paragraphs (1)
through (3) of section 468M-3, by multiplying the number of days the
violations occurred by the number of locations of an activity desk where the
violations occurred;
(2) For violations of section 468M-3(4), by counting the number of days where the client trust account held funds insufficient to meet the requirements of section 468M-3(4); and
(3) Notwithstanding paragraphs (1) and (2), not more than $10,000 shall be awarded if the activity desk has not previously been required to pay damages to an activity provider pursuant to this section."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title:
Activity Desk; Activity Desk Principal; Liability; Client Trust Accounts
Description:
Makes a principal of an activity desk, and all persons with an ownership interest in the activity desk, jointly and severally liable for any financial deficiency when the activity desk's client trust account is insufficient to pay consumers or activity providers. Clarifies that an activity desk, along with its principal and all persons with an ownership interest in the activity desk, shall be held liable for statutory violations and subsequent damages. Effective 7/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.