HB2527

PART I

SECTION 1. The legislature finds that the 1993 Apology Resolution, Public Law 103-150, acknowledged the 100th anniversary of the United States military's role in the illegal overthrow of the Hawaiian Kingdom.

The legislature further finds that lands held by the State, including so-called ceded lands, are subject to public trust obligations assigned by Congress through the Organic Act of 1900 and reaffirmed by the Hawaii Admission Act. These obligations are now expressly embodied and enforceable under articles XI and XII of the Hawaii State Constitution, as ratified by the people of Hawaii. As a result of this legal framework, the State has an affirmative duty to conserve and protect its lands and natural resources and to safeguard Native Hawaiian traditional and customary practices, cultural resources, and environmental integrity.

Since then, the United States military's activities in Hawaii have caused substantial environmental harm, including the destruction of Kahoolawe's natural and cultural resources and aquifer, the contamination of drinking water from the Red Hill Bulk Fuel Storage Facility, and a fuel spill associated with United States Space Force operations on Haleakala.

The United States Department of Defense has continually under-reimbursed the State by approximately $300,000,000 in impact aid annually, resulting in an estimated $6,000,000,000 in unpaid obligations over just the past twenty years. Despite all of the United States military's transgressions against the people of Hawaii, the State has granted numerous benefits, entitlements, privileges, and compacts favoring United States military personnel.

The legislature firmly believes that the commencement of land condemnation proceedings by the United States government or any agency thereof against the State constitutes a material change in circumstances that is inconsistent with the continuation of such discretionary statutory accommodations and directly affects the State's ability to fulfill its Congressionally assigned and constitutionally mandated trust obligations.

The purpose of the Apology Resolution was for the United States to acknowledge the ramifications of the illegal overthrow of the Kingdom of Hawaii then act to support reconciliation efforts between the United States and the Native Hawaiian people. However, the current threat of the United States government to take Hawaii's public trust lands via condemnation does exactly the opposite. Instead, it affirms that the distrust of the people of Hawaii was warranted and the generous laws enjoyed by military personnel in Hawaii should be accordingly repealed.

PART II

SECTION 2. Section 26-21, Hawaii Revised Statutes, is amended to read as follows:

"§26-21 Department of defense. [~~(a)~~] The department of defense shall be headed by a single executive to be known as the adjutant general. The adjutant general shall also be the director of the Hawaii emergency management agency as established in section 127A-3.

The department shall be responsible for the defense of the State and its people from mass violence, originating from either human or natural causes.

The devolution of command of the military forces in the absence of the adjutant general shall be within the military establishment. The devolution of command of the Hawaii emergency management agency in the absence of the adjutant general, as director of the agency, shall be within the agency.

[~~(b) The office of veterans' services and the advisory board on veterans' services as constituted by chapter 363 are placed within the department of defense for administrative purposes.~~]"

SECTION 3. Section 29-25, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"§29-25 Department of education; federal funds; general fund offset. (a) Federal impact aid, United States Department of Defense funds, and federal indirect overhead reimbursements received by the department of education shall not be returned to the general fund.

(b) If the amount of federal impact aid and United States Department of Defense funds received by the department of education exceeds the authorized appropriation in the general appropriations act or the supplemental appropriations act, then the governor shall:

(1) Allow the department of education to increase the federal fund expenditure ceiling for all program identification numbers, each by an amount proportionate to its portion of the total general fund appropriation made by the legislature and by the amount that the federal impact aid and United States Department of Defense funds received by the department of education exceeds the authorized appropriation in the general appropriations act or the supplemental appropriations act; and

(2) Allow the department of education to retain the full amount of the general fund offset created by increased impact aid receipts; provided that the department shall not use the general fund offset to create new programs or expand existing programs.

[~~(c) Beginning July 1, 2004, and for each fiscal year thereafter, the department of education may set aside $100,000 of federal impact aid moneys received pursuant to this section to:~~

~~(1)~~ ~~Establish and fund a permanent, full-time military liaison position within the department of education; and~~

~~(2)~~ ~~Fund the joint venture education program to facilitate interaction between the military community and the department of education.~~

The military liaison position established under paragraph (1) shall be exempt from chapter 76 but shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State.

~~(d)~~] (c) The department of education shall submit a report to the legislature, not fewer than twenty days prior to the convening of each regular session, concerning the exact amount and specific nature of federal impact aid, United States Department of Defense funds, and federal indirect overhead reimbursements received under this section."

SECTION 4. Section 78-1, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) All persons seeking employment with the government of the State or in the service of any county shall be citizens, nationals, or permanent resident aliens of the United States, or eligible under federal law for unrestricted employment in the United States, and shall become residents of the State within thirty days after beginning their employment and as a condition of eligibility for continued employment[; provided that bona fide military service members' dependents shall be exempt from the requirement to become residents if the dependents are in the State by virtue of the military service members' orders.]

For purposes of this subsection[:],

["Dependent", with respect to a service member, means the service member's spouse, child who is under the age of eighteen years, or an individual for whom the service member provided more than one-half of the individual's financial support for one hundred eighty days immediately preceding an application for an exemption under this section.

~~"Resident"~~] "resident" means a person who is physically present in the State at the time the person claims to have established the person's domicile in the State and shows the person's intent is to make Hawaii the person's primary residence."

SECTION 5. Section 88-55.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) This section shall not[:

~~(1)~~ ~~Preclude~~] preclude from membership in the system pursuant to section 88-42 any member of the Hawaii national guard who is an employee of the State or any county, in a position other than as a member of the Hawaii national guard ordered into active duty to provide services to the State[~~; or~~

~~(2)~~ ~~Prevent the Hawaii national guard member from being credited with membership service credit for active military service pursuant to sections 88-132 and 88-132.5~~]."

SECTION 6. Section 88-272, Hawaii Revised Statutes, is amended to read as follows:

"§88-272 Credited service. Credited service includes:

(1) Service by an employee rendered since becoming a member;

(2) Service credited under part II as a class A or class B member for members who make the election described in section 88-271(a);

(3) Service for members who return to service in the manner described in section 88-271(b);

[~~(4)~~ ~~Service in the armed forces as provided by subpart E of part II; provided that the service shall be credited at no cost upon certification by the system;~~

~~(5)~~] (4) Mandatory maternity leave as provided in part II; provided that such service shall be credited at no cost upon certification by the system;

[~~(6)~~] (5) Service rendered prior to becoming a class C member as described in section 88-51 that is not included in paragraphs (1) to (5); provided that the service shall be credited at no cost. Upon certification by the system, that service shall be credited at the rate of one month of service credit for each month of service rendered following the return to membership; and

[~~(7)~~] (6) Unused sick leave as provided in section 88-63; provided that any additional service credit shall not be used in determining eligibility for retirement or for any other purpose as a class C member."

SECTION 7. Section 88-321, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any member, except for a member described in subsection (c), who is in service on June 30, 2006, may elect to become a class H member effective July 1, 2006, by filing an election form with the system in accordance with this section. The election shall be made prior to April 1, 2006, by members in service on February 28, 2006[; provided that any member in service on February 28, 2006, who is absent from the State on that date while in the military service of the United States, shall have thirty days after the member returns to the member's regular employment with the State or a county to make the election. The election shall be made by members entering or returning to service from March 1, 2006, through June 30, 2006, within sixty days of entering or returning to service]. The election shall be irrevocable."

SECTION 8. Section 88-322, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Class C members who are in service on June 30, 2006, and make the election to become class H members pursuant to section 88-321(a), shall have the option to convert some or all of their class C credited service, as of June 30, 2006, to class H credited service by paying the full actuarial cost of the conversion as of December 31, 2008, in the manner provided in subsection (d). The option to convert class C credited service to class H credited service shall also apply:

(1) To forfeited credit for previous service that a member is eligible to have restored as of June 30, 2006; and

(2) To membership service credit that a member is eligible to claim under section 88-272(4) to [~~(6)~~] (5) as of June 30, 2006;

provided that the member shall claim the forfeited service credit and the membership service credit by the date established by the board at a meeting held pursuant to chapter 92."

2. By amending subsection (d) to read as follows:

"(d) The board may permit the cost of conversion of class C credited service to class H credited service pursuant to subsection (a) or (b) to be paid by the member in any one of the following methods at the member's option:

(1) By after-tax deductions from the member's compensation. An irrevocable payroll authorization filed by the member for a period not to exceed one hundred twenty months shall remain in effect until the completion of the payroll payments or termination of employment, whichever is earlier. The amount of the deductions shall be in an amount sufficient to amortize the actuarial cost of the conversion, together with interest at the rate of eight per cent a year, in level bi-monthly payments over the period specified in the irrevocable authorization. Service credited will be proportional on the basis of whole months. For example, a member electing to convert one hundred twenty months of service over sixty months and terminating after thirty and one-half months of deductions pursuant to this subsection, will have converted sixty months of class C service to class H service; or

(2) By lump sum payment.

The deductions from compensation or lump sum payment shall be paid to the system and shall be credited to the member's individual account and become part of the member's accumulated contributions. The deductions from compensation shall commence, and any lump sum payment shall be paid to the system, within one hundred eighty days after the deadline for making the election to convert class C credited service to class H credited service. [If a member is absent from the state while in the military service of the United States during the one hundred eighty-day period after the deadline for making the election, the deductions from the member's compensation shall commence, and any lump sum payment shall be made by the member, within one hundred eighty days after the member's return to the member's regular employment with the State or county; provided that any extension, pursuant to subsection (c), of the deadline for making the election to convert class C credited service to class H credited service shall not extend the time for the deductions from the member's compensation to commence or for the member to make any lump sum payment unless the extension pursuant to subsection (c) is applicable to all members eligible to make the election.] A member's election to convert class C credited service to class H credited service shall be deemed revoked as to any service for which payments by deductions from compensation do not commence, or for which the lump sum payment is not made, within the time required by this subsection."

SECTION 9. Section 88-323, Hawaii Revised Statutes, is amended to read as follows:

"[[]§88-323[]] Class H credited service. Class H credited service includes:

(1) Service by an employee rendered since becoming a class H member;

(2) Service credited under part II as a class A member or a class B member and converted to class H credited service pursuant to section 88-322(b);

(3) Service credited under part VII as a class C member and converted to class H credited service pursuant to section 88-322(a);

[~~(4)~~ ~~Service in the armed forces as provided by subpart E of part II;~~

~~(5)~~] (4) Mandatory maternity leave as provided in part II; and

[~~(6)~~] (5) Unused sick leave as provided in section 88-63; provided that any additional service credit shall not be used in determining eligibility for retirement or for any other purpose as a class H member."

SECTION 10. Section 88-324, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Except as otherwise provided in subsection (c), (d), or (e), verified membership service shall be paid for in any one of the following methods, at the member's option:

(1) If deductions commence or the lump sum payment is made prior to July 1, 2020:

(A) By deductions from the member's compensation pursuant to section 414(h)(2) of the Internal Revenue Code of 1986, as amended, under the employer pick up plan under section 88-326. An irrevocable payroll authorization filed by the member for a period not to exceed sixty months shall remain in effect until the completion of the payroll payments or termination of employment, whichever is earlier. The amount of service credit that may be acquired pursuant to this method shall not exceed the period over which the payroll payments are made. The member may elect to have:

(i) Deductions from the member's compensation of twice the contribution rate provided for in section 88-325 over a period equal to the period for which membership service credit is allowable not to exceed sixty months; or

(ii) Deductions from the member's compensation of one and one-half times the contribution rate provided for in section 88-325 over a period equal to twice the period for which membership service credit is allowable, not to exceed sixty months; or

(B) By lump sum payment of contributions computed at the contribution rate provided for in section 88-325 applied to the member's monthly rate of compensation at the time of payment multiplied by the number of months for which membership service credit is allowable.

(2) If the payment is made after June 30, 2020, by lump sum payment equal to the actuarial cost of the membership service to be credited; provided that the member has at least five years of membership exclusive of any previous service acquired under paragraph (1).

The actuarial cost of the membership service to be credited shall be determined by the actuary for the system based on the age of the member in full years as of the date the claim for service credit is made, the investment yield rate assumption in effect as of the date the claim for service credit is made, the retirement age eligibility requirements and retirement allowance provisions applicable to the member, and other actuarial assumptions adopted by the board in effect as of the date the claim for service is made.

The deductions from compensation or lump sum payment shall be paid to the system and shall be credited to the member's individual account and become part of the member's accumulated contributions.

Class H membership service credit in addition to any other service credited to the member shall be allowed for the period for which the deductions from compensation or lump sum payment have been made in accordance with this subsection; provided that payment shall commence within one year after the system notifies the member that the service claimed has been verified and that service credit is allowable; provided further that, for a member who becomes a member after June 30, 2016: membership service credit for prior service or for service rendered prior to the member's last becoming a member shall be claimed within one year after the member enters service[~~; membership service credit for military service pursuant to section 88-132.5 shall be claimed within one year after the member meets the requirements of section 88-132.5(a) or (b);~~] and any other membership service credit acquired pursuant to this section shall be claimed within one year after the member becomes eligible to receive the service credit upon satisfaction of the requirements of this section.

(c) Verified membership service for which a former class A or class B member in service on June 30, 2006, was eligible as of June 30, 2006, but failed to claim by the date established by the board pursuant to section 88-322(b), shall be paid for in any one of the following methods, at the member's option:

(1) If deductions commence or the lump sum payment is made prior to July 1, 2020:

(i) Deductions from the member's compensation of twice the contribution rate applicable to the member under section 88-45 as of June 30, 2006, over a period equal to the period for which membership service credit is allowable, not to exceed sixty months; or

(ii) Deductions from the member's compensation of one and one-half times the contribution rate applicable to the member under section 88-45 as of June 30, 2006, over a period equal to twice the period for which membership service credit is allowable, not to exceed sixty months; or

(B) By lump sum payment of contributions computed at the contribution rate applicable to the member under section 88-45 as of June 30, 2006, applied to the member's monthly rate of compensation at the time of payment, multiplied by the number of months for which membership service credit is allowable.

The deductions from compensation or lump sum payment shall be paid to the system and shall be credited to the member's individual account and become part of the member's accumulated contributions.

Class H membership service credit in addition to any other service credited to the member shall be allowed for the period for which the deductions from compensation or lump sum payment have been made in accordance with this subsection; provided that payment shall commence within one year after the system notifies the member that the service claimed has been verified and that service credit is allowable; and provided further that, for a member who becomes a member after June 30, 2016: membership service credit for prior service or for service rendered prior to the member's last becoming a member shall be claimed within one year after the member enters service[~~; membership service credit for military service pursuant to section 88-132.5 shall be claimed within one year after the member meets the requirements of section 88-132.5(a);~~] and any other membership service credit acquired pursuant to this section shall be claimed within one year after the member becomes eligible to receive the service credit upon satisfaction of the requirements of this section."

SECTION 11. Section 122A-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) [~~When in the active service of the Hawaii state defense force, members of the Hawaii state defense force are subject to chapter 124B.~~] Members are deemed to be in the active service of the Hawaii state defense force from the date and time specified in any order lawfully calling them into such service."

SECTION 12. Section 134-2, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) No person shall be issued a permit under this section for the acquisition of a firearm unless the person, within the four years before the issuance of the permit, has completed:

(1) An approved hunter education course as authorized under section 183D-28, unless the applicant seeks to acquire a pistol or revolver, in which case the applicant shall complete a training satisfying the requirements of paragraph (2), (3), or (4);

(2) A firearms safety or training course or class available to the general public offered by a law enforcement agency of the State or of any county;

(3) A firearms safety or training course offered to law enforcement officers, security guards, investigators, deputy sheriffs, or any division or subdivision of law enforcement or security enforcement by a state or county law enforcement agency; or

(4) A firearms training or safety course or class conducted by a firearms instructor certified or verified by the chief of police of the respective county or a designee of the chief of police or certified by a nongovernmental organization approved for such purposes by the chief of police of the respective county or a designee of the chief of police[~~, or conducted by a certified military firearms instructor~~]; provided that the firearms training or safety course or class provides, at a minimum, a total of at least two hours of firing training at a firing range and a total of at least four hours of classroom instruction, which may include a video, that focuses on:

(A) The safe use, handling, and storage of firearms and firearm safety in the home, as well as a component on mental health, suicide prevention, and domestic violence issues associated with firearms and firearm violence; and

(B) Education on the firearm laws of the State.

An affidavit signed by the certified or verified firearms instructor who conducted or taught the course, providing the name, address, and phone number of the instructor and attesting to the successful completion of the course by the applicant shall constitute evidence of certified successful completion under this paragraph; provided that an instructor shall not submit an affidavit signed by the instructor for the instructor's own permit application."

SECTION 13. Section 134-9, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) The course of training for issuance of a license under this section may be any course acceptable to the licensing authority that meets all of the following criteria:

(1) The course shall include in-person instruction on firearm safety; firearm handling; shooting technique; safe storage; legal methods to transport firearms and secure firearms in vehicles; laws governing places in which persons are prohibited from carrying a firearm; firearm usage in low-light situations; situational awareness and conflict management; and laws governing firearms, including information regarding the circumstances in which deadly force may be used for self-defense or the defense of another;

(2) The course shall include a component on mental health and mental health resources;

(3) Except for the component on mental health and mental health resources, the course shall be conducted by one or more firearms instructors certified or verified by the chief of police of the respective county or a designee of the chief of police or certified by a nongovernmental organization approved for those purposes by the chief of police of the respective county or a designee of the chief of police[~~, or conducted by one or more certified military firearms instructors~~];

(4) The course shall require participants to demonstrate their understanding of the covered topics by achieving a score of at least seventy per cent on a written examination; and

(5) The course shall include live-fire shooting exercises on a firing range and shall include a demonstration by the applicant of safe handling of, and shooting proficiency with, each firearm that the applicant is applying to be licensed to carry."

SECTION 14. Section 183D-22, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The hunting license fee shall be:

(1) $10 for any person who has resided in the State for one year or longer, [~~or who is a member of the armed forces of the United States on active duty and the spouse and children thereof,~~] or who elects to forgo the exemption provided in paragraph (4);

(2) $95 for all other persons;

(3) $50 for a three-day period and $95 for a seven-day period for hunting on a private and commercial shooting preserve for persons who do not meet the requirements of paragraph (1) or (4); and

(4) Free to all Hawaii residents sixty-five years of age or older and to all persons with Hansen's disease who are residents of Kalaupapa, Molokai."

SECTION 15. Section 188-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) It shall be unlawful for any nonresident of the State who has attained the age of fifteen[~~, except members of the armed forces of the United States on active duty in the State and their spouse and minor children,~~] to fish for, take, or catch any marine life for noncommercial or recreational purposes without first obtaining a nonresident recreational marine fishing license. The department shall adopt rules pursuant to chapter 91 necessary for the purposes of this section."

SECTION 16. Section 201H-49, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Real property purchased under this chapter shall be occupied by the purchaser at all times during the ten-year restriction period set forth in section 201H-47, except in hardship circumstances where the inability to reside on the property arises out of unforeseeable job [~~or military~~] transfer, a temporary educational sabbatical, serious illness of the person, or in other hardship circumstances as determined by the corporation on a case-by-case basis.

The corporation may waive the owner-occupancy requirement for a total of not more than ten years after the purchase of the dwelling, during which time the dwelling unit may be rented or leased. Waivers may be granted only to qualified residents who have paid resident state income taxes during all years in which they occupied the dwelling, who continue to pay resident state income taxes during the waiver period, and whose inability to reside on the property does not stem from a natural disaster. The ten-year owner-occupancy requirement shall be extended by one month for every month or fraction thereof that the owner-occupancy requirement is waived.

The corporation shall adopt rules under chapter 91 to implement the letter and spirit of this subsection and to prescribe necessary terms and conditions. The rules shall include:

(1) Application and approval procedures for the waivers;

(2) Exceptions authorized by this subsection;

(3) The amounts of rents that may be charged by persons allowed to rent or lease a dwelling unit; and

(4) Schedules of fees needed to cover administrative expenses and attorneys' fees.

No qualified resident who fails to reoccupy a dwelling unit after any waiver period shall receive more than the maximum to which the person would be entitled under section 201H-47. Any person who disagrees with the corporation's determination under this section shall be entitled to a contested case proceeding under chapter 91."

SECTION 17. Section 201H-71, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The corporation, with the approval of the governor, may issue from time to time bonds (including refunding bonds to pay, retire, or provide for the retirement of bonds previously issued by the corporation) in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for any of its corporate purposes. [Bonds may also be issued in connection with any program whose primary purpose is to provide housing for active or retired United States military personnel, their families, and other persons authorized by any branch of the United States military to reside in the housing; provided that the aggregate principal amount of all outstanding bonds issued by the corporation for military housing projects shall total no more than $2,000,000,000.]"

SECTION 18. Section 206E-284, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) The authority may adopt rules pursuant to chapter 91 that authorize the executive director to waive the requirements set forth in subsection (a), where the inability of an owner to reside in the residential condominium unit is due to unforeseen circumstances, [~~military transfer,~~] serious illness, or other hardship circumstances as determined by the executive director."

SECTION 19. Section 249-9.3, Hawaii Revised Statutes, is amended to read as follows:

"§249-9.3 Special number plates; design and issuance by counties. (a) In lieu of the number plates contracted on behalf of the counties by the director of finance of the city and county of Honolulu, the county directors of finance shall issue special number plates to any organization in the State that meets the minimum standards and qualifications established under this section. Organizations are authorized to retain the fees collected, less expenses, for the special number plates.

The director of finance of the city and county of Honolulu, in consultation with the directors of finance of the counties of Kauai, Maui, and Hawaii, shall establish special design parameters and restrictions for decals or graphic representations affixable to special number plates; provided that the decal shall not be larger than four inches wide by four inches high.

(b) For the purposes of this section, the following terms shall have the following meanings:

"Director" unless indicated otherwise by its context, means the county directors of finance.

"Organization" means:

(1) A not-for-profit organization recognized as such by the Internal Revenue Service and whose primary purpose is to provide the community with specific programs to improve the public's health, education, or general welfare;

[~~(2)~~ ~~A military service veterans group;~~

~~(3)~~] (2) A state or county agency approved by the director; or

[~~(4)~~] (3) Any school or accredited institution of higher learning or a college or recognized program thereof.

"Special number plate" means a license plate with a decal on its face that represents an organization as defined in this section.

(c) Organizations as defined under subsection (b) may apply for a special number plate with the director. The organization shall design a decal to be placed on the license plate that represents the organization and complies with this section.

All organizations shall be headquartered in the State; provided that an organization that is a chapter or branch of an international, national, or regional organization shall be in good standing and authorized in writing by the parent organization to use the decal design applied for by the organization.

(d) An organization shall apply for a special number plate with the director on an application form prescribed by the director. The application shall include:

(1) A design of the organization's decal;

(2) A signed notarized statement by an officer or director of the organization that the organization will acquire at least one hundred fifty special number plates; and

(3) The dollar amount the organization plans to raise from each special number plate.

The director shall determine, based on criteria in this section, and the director's discretion, whether an organization's application has been accepted or rejected. The director shall also seek the approval of an organization's decal design from the county chief of police where the application is made.

If the director rejects an application, the director shall state the reasons for the rejection in writing and shall allow the applicant to reapply within a reasonable period after the rejection.

After an organization's application has been approved, a motor vehicle owner may apply for the organization's special number plate. The director may require the completion of a form as prescribed by the director. Special number plates shall be issued only to the registered owner of an applicant motor vehicle.

(e) The design of the decal used on an organization's special number plate shall not:

(1) Infringe or otherwise violate any trademark, trade name, service mark, copyright, or other proprietary or property right;

(2) Represent any obscene or degrading image, idea, word, or phrase;

(3) Advertise or endorse a product, brand, or service that is provided for sale;

(4) Promote any religious belief; or

(5) Promote any philosophy based on prejudice or that is contrary to state civil rights laws;

provided that the decal does not obstruct the visibility of the number or letters or any other information that is required by law to be on the license plate and is readily identifiable and distinguishable under actual traffic conditions.

(f) The director shall charge a special number plate fee equal to the county's cost of providing the special number plate plus the organization's fundraising amount applied for under subsection (d). The fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate. The fundraising portion of the fee shall be deposited in the name of the organization in a separate county budget account. The director shall determine the most efficient means of reimbursing organizations for their fundraising portion of the fee.

(g) The director may revoke the approval of an organization's application for special number plates if the total number of registered vehicles that obtained the special number plates is less than one hundred fifty within three years of receiving approval to issue the organization's special number plate. Upon the revocation of the approval, the director shall return the unused decals to the organization.

[~~(h) Nothing in this section shall be construed to apply to special number plates issued pursuant to section 249-9.2.~~]"

SECTION 20. Section 249-9.4, Hawaii Revised Statutes, is amended to read as follows:

"§249-9.4 Special series number plates. A qualified household member, as defined in section 291E-1, or a co-owner of a motor vehicle owned by a respondent under part III of chapter 291E, who has been granted a special motor vehicle registration under section 291E-48, shall apply to the appropriate county director of finance for special number plates that shall bear a special series of numbers or letter so as to be readily identifiable by law enforcement officers and readily distinguishable from number plates or special number plates issued under sections 249-9.1[~~, 249-9.2,~~] and 249-9.3. The director of finance may issue the special series number plates only if:

(1) The director of finance receives written approval for the issuance of special series number plates from the administrative director of the courts, or the administrative director's appointee pursuant to section 291E-1;

(2) The qualified household member or a co-owner of the motor vehicle has a license that has not expired or been suspended or revoked; and

(3) The applicant pays a fee for the special series number plates that is equal to the costs of the plates and tag or emblem, plus the administrative costs of furnishing the plates and tag or emblem and effecting the registration for each motor vehicle for which special series number plates are issued."

SECTION 21. Section 249-9.5, Hawaii Revised Statutes, is amended by amending subsection (i) to read as follows:

"(i) Nothing in this section shall be construed to apply to any plates issued pursuant to [~~sections 249-9.2 and~~] section 249-9.6."

SECTION 22. Section 249-9.6, Hawaii Revised Statutes, is amended by amending subsection (i) to read as follows:

"(i) Nothing in this section shall be construed as to apply to any plates issued pursuant to [~~sections 249-9.2 or~~] section 249-9.5."

SECTION 23. Section 249-9.7, Hawaii Revised Statutes, is amended to read as follows:

"§249-9.7 Special number plates for environmental conservation; authorized. (a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of an electric vehicle, who is a resident of the State and has completed the application and paid the required fees, special number plates that commemorate the importance of environmental conservation, for the registered owner's motor vehicle. The special number plates shall be granted the same benefits and restrictions granted to any other electric vehicle special number plates.

(b) The director of finance of the city and county of Honolulu shall establish special number plate designs that commemorate the importance of environmental conservation. The design:

(1) Shall contain words or images, or both, that indicate that the special number plate is being issued to commemorate the importance of environmental conservation;

(2) Shall be similar in shape and size to the uniform state number plate prescribed by law;

(3) Shall be readily identifiable and distinguishable under actual traffic conditions; and

(4) May, but shall not be required to, bear the words "Aloha State" along the lower portion of the plate.

The director of finance of the city and county of Honolulu shall consult with the directors of finance of the counties of Kauai, Maui, and Hawaii; the chiefs of police of the city and county of Honolulu and the counties of Kauai, Maui, and Hawaii; and the chairperson of the board of land and natural resources in establishing the special number plate design, which shall be visually attractive and highlight Hawaii's environment, native species, or both.

(1) Infringe upon or otherwise violate any trademark, trade name, service mark, copyright, or other proprietary or property right;

(2) Represent any obscene or degrading image, idea, word, or phrase;

(3) Advertise or endorse a product, brand, or service that is provided for sale;

(4) Promote any religious belief;

(5) Promote any philosophy based on prejudice or that is contrary to state civil rights laws; or

(6) Obstruct the visibility of the number plate's numbers or letters or any other information that is required by law to be on a number plate.

(d) Each special number plate shall be securely fastened to the electric vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be set by the department of land and natural resources. The fundraising fee established by this subsection shall be in addition to any other state or county fees collected for a motor vehicle registration or license plates.

(f) The revenue generated by the fundraising fees established pursuant to subsection (e) shall be deposited into the conservation and resources enforcement special fund established under section 199-1.5.

(g) The director of finance may revoke all special number plates issued pursuant to this section if the total number of registered owners of electric vehicles that obtain the special number plates is less than one hundred fifty within three years of issuance of the first special number plate.

[~~(h) Nothing in this section shall be construed to apply to any plates issued pursuant to section 249-9.2.~~

~~(i)~~] (h) For the purposes of this section:

"Electric vehicle" means a vehicle:

(1) Powered by an electric motor via electricity:

(A) Stored in a high capacity battery; or

(B) Generated from an onboard fuel cell; and

(2) That produces zero emissions.

"Special number plate" means a license plate that is not a uniform state number plate, unless a different meaning appears from the context."

SECTION 24. Section 249-9.8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§249-9.8[]] Special number plates for Duke Kahanamoku authorized. (a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of a motor vehicle, who is a resident of the State, upon completed application and payment of required fees, a special number plate for the registered owner's motor vehicle commemorating Duke Kahanamoku and his contributions to Hawaii; provided that the director of finance of the city and county of Honolulu shall not issue any special number plate pursuant to this section before receiving from the owner of the Duke Kahanamoku trademark, Malama Pono, Inc., written permission for the trademark to be used for the special number plate and for all proceeds to benefit the Outrigger Duke Kahanamoku Foundation.

(b) The director of finance of the city and county of Honolulu, in consultation with the directors of finance of the counties of Kauai, Maui, and Hawaii, the chiefs of police of the city and county of Honolulu and the counties of Kauai, Maui, and Hawaii, and the executive director of the Outrigger Duke Kahanamoku Foundation, shall establish a special number plate design that:

(1) Is similar in shape and size to the uniform state number plate prescribed by law;

(2) Complies with all other requirements in section 249-9(a);

(3) Contains words, images, or both, not to exceed four and a half inches in height by four inches in width, that indicate the special number plate is issued to recognize Duke Kahanamoku; and

(4) Does not obstruct the visibility of the number or letters or any other information that is required by law to be on a number plate and is readily identifiable and distinguishable under actual traffic conditions;

provided that the director of finance of the city and county of Honolulu may also establish additional special number plate designs in conformance with this subsection and subsection (c) that jointly or separately recognize Duke Kahanamoku.

(1) Infringe upon or otherwise violate any trademark, trade name, service mark, copyright, or other proprietary or property right;

(2) Represent any obscene or degrading image, idea, word, or phrase;

(3) Advertise or endorse a product, brand, or service that is provided for sale;

(4) Promote any religious belief; or

(5) Promote any philosophy based on prejudice or that is contrary to state civil rights laws.

(d) Each special number plate shall be securely fastened to the motor vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be determined by the director of finance in consultation with the executive director of the Outrigger Duke Kahanamoku Foundation. The fundraising fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate.

(f) The director of finance may charge an additional fundraising fee, of the same or a different amount as the fundraising fee established pursuant to subsection (e), for the renewal of a special number plate. If an additional fundraising fee is implemented pursuant to this subsection, the director of finance shall not renew and instead shall revoke the special number plate of the registered owner of a motor vehicle who fails to pay the additional fundraising fee imposed by this subsection.

(g) The revenue generated by the fundraising fees, or a portion of the revenue generated by the fundraising fees as determined by the director of finance, shall be deposited in the name of the Outrigger Duke Kahanamoku Foundation in a separate county budget account. The director of finance shall determine the most efficient means of directing the net revenue generated by the fundraising fees to the Outrigger Duke Kahanamoku Foundation, as appropriate, to fund programs that promote water safety and swim education across the State while developing world class water athletes as a tribute to, and in the spirit of, Duke Kahanamoku.

(h) The director of finance may revoke all special number plates issued pursuant to this section if the total number of registered owners of motor vehicles who obtain the special number plates is less than one hundred fifty within three years of issuance of the first special number plate.

[~~(i) Nothing in this section shall be construed to apply to any plates issued pursuant to section 249-9.2.~~

~~(j)~~] (i) For the purposes of this section, unless a different meaning appears from the context, "special number plate" means a license plate that commemorates Duke Kahanamoku."

SECTION 25. Section 249-9.9, Hawaii Revised Statutes, is amended to read as follows:

"[[]§249-9.9[]] Special number plates for Malama Puuloa; authorized. (a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of a motor vehicle, who is a resident of the State and has completed the application and paid the required fees, a special number plate for the registered owner's motor vehicle that commemorates Malama Puuloa and observes the organization's contributions to the restoration of Puuloa, also known as Pearl Harbor.

(b) The director of finance of the city and county of Honolulu, in consultation with the directors of finance of the counties of Kauai, Maui, and Hawaii; the chiefs of police of the city and county of Honolulu and the counties of Kauai, Maui, and Hawaii; and the chief executive officer of Hui o Ho`ohonua shall establish a special number plate design that:

(1) Contains words, images, or both, that indicate the special number plate is issued to recognize Malama Puuloa;

(2) Is similar in shape and size to the uniform state number plate prescribed by law;

(3) Does not exceed four and one-half inches in height by four and one-half inches in width;

(4) Complies with all other requirements in section 249-9(a); and

(5) Does not obstruct the visibility of the number or letters or any other information that is required by law to be on a number plate and is readily identifiable and distinguishable under actual traffic conditions;

(1) Infringe upon or otherwise violate any trademark, trade name, service mark, copyright, or other proprietary or property right;

(2) Represent any obscene or degrading image, idea, word, or phrase;

(3) Advertise or endorse a product, brand, or service that is provided for sale;

(4) Promote any religious belief; or

(5) Promote any philosophy based on prejudice or that is contrary to state civil rights laws.

(d) Each special number plate shall be securely fastened to the motor vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be determined by the director of finance in consultation with the chief executive officer of Hui o Ho`ohonua. The fundraising fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate.

(g) The revenue generated by the fundraising fees, or a portion of the revenue generated by the fundraising fees as determined by the director of finance, shall be deposited in the name of Malama Puuloa in a separate county budget account. The director of finance shall determine the most efficient means of directing the net revenue generated by the fundraising fees to Malama Puuloa, as appropriate, to fund the restoration of Puuloa, or Pearl Harbor.

[~~(i) Nothing in this section shall be construed to apply to any plates issued pursuant to section 249-9.2.~~

~~(j)~~] (i) For the purposes of this section, unless a different meaning appears from the context, "special number plate" means a license plate that commemorates Malama Puuloa."

SECTION 26. Section 249-31, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4[,] and 249-6, [~~and 249~~‑~~31.5,~~] shall be subject to a $46 annual vehicle registration fee; provided that alternative fuel vehicles shall pay an annual vehicle registration surcharge of $50, which shall be assessed and collected beginning with the first registration renewal for every alternative fuel vehicle and shall be deposited into the state highway fund established under section 248-8. The surcharge shall be paid each year together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51, and the state registration for that county shall likewise be staggered so that the state registration fee is due and payable at the same time and shall be collected together with the county fee. The state registration fee shall be deemed delinquent if not paid with the county registration fee. The respective counties shall collect this fee together with the vehicle registration tax collected for the county and shall transfer the moneys collected under this section to the State.

For the purposes of this subsection, "alternative fuel vehicle" means a vehicle powered by a non-petroleum-based fuel, but excludes an electric vehicle as defined in section 249-36(g)."

SECTION 27. Section 249-33, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4, 249-5.5, and 249-6, [~~and 249-6.5,~~] in addition to all other fees and taxes levied by this chapter, shall be subject to an annual state vehicle weight tax. The tax shall be levied by the county director of finance at the rate of 1.75 cents a pound according to the net weight of each vehicle as the "net weight" is defined in section 249-1 up to and including four thousand pounds net weight; vehicles over four thousand pounds and up to and including seven thousand pounds net weight shall be taxed at the rate of 2.00 cents a pound; vehicles over seven thousand pounds and up to and including ten thousand pounds net weight shall be taxed at the rate of 2.25 cents a pound; vehicles over ten thousand pounds net weight shall be taxed at a flat rate of $300."

SECTION 28. Section 249-36, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Vehicles subject to the state mileage-based road usage charge shall include all electric vehicles in the State except for vehicles that qualify for any of the exemptions in sections 249-4, 249-5.5, and 249-6[~~, and 249-6.5~~]."

SECTION 29. Section 249-37, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In addition to any other fees required by law, each county shall impose and collect a $5 surcharge on every motor vehicle registration issued under section 249-31 [~~or 249-31.5~~], no later than December 31, 2025."

SECTION 30. Section 286-107, Hawaii Revised Statutes, is amended to read as follows:

"§286-107 License renewals; procedures and requirements. (a) The examiner of drivers may accept an application for a renewal of a driver's license made not more than six months prior to the date of expiration.

If, however, the renewal is not applied for within ninety days after the expiration of the license, the applicant for renewal shall be treated as an applicant for a new license and examined as provided in section 286-108.

(b) Except as otherwise provided in subsection (c), an applicant for a renewal of a driver's license under this section, or the reactivation of an expired license under section 286-107.5(a), shall appear in person before the examiner of drivers and the examiner of drivers shall administer such physical examinations as the state director of transportation deems necessary to determine the applicant's fitness to continue to operate a motor vehicle.

(c) Any person who holds a category (1), (2), or (3) license issued under this part may apply for a renewal of the license online via any electronic or digital means provided by the examiner of drivers, or by mail, if the person is not disqualified from renewing the license under subsection (a) except as provided under subsection (h). The applicant's request to have the license renewed by mail must be received by the examiner of drivers within ninety days after the expiration of the license or it shall be treated as an application for reactivation of an expired license under section 286-107.5. The examiner of drivers shall, upon receipt of the request, furnish the applicant with all necessary forms and instructions. An application for renewal made by electronic or digital means or by mail pursuant to this subsection shall be accompanied by a statement from a licensed physician, physician assistant, or advanced practice registered nurse certifying that the applicant was examined by the licensed physician, physician assistant, or advanced practice registered nurse no more than six months before the expiration date of the applicant's license and that the applicant was found by the examination to have met the physical requirements established by the state director of transportation for the renewal of licenses. The application for renewal by electronic or digital means or by mail shall also be accompanied by:

(1) A notarized statement of the applicant certifying that the applicant does not possess any valid license to operate the same or similar category or categories of motor vehicles, issued by another licensing authority (unless the license is concurrently surrendered); and

(2) Any other information as may be required by the examiner of drivers that is reasonably necessary to confirm the identity of the applicant and the applicant's fitness to continue to operate a motor vehicle.

(d) An applicant for a renewal of the applicant's driver's license, whether applying pursuant to subsections (b) or (c), shall pay the fee determined by the council of the appropriate county. Payment of the fee shall be by certified check or money order, tendered together with the application.

(e) No driver's license shall be renewed by the examiner of drivers unless:

(1) The examiner of drivers is satisfied of the applicant's fitness to continue to operate a motor vehicle;

(2) The fee required by subsection (d) is tendered together with the application for renewal;

(3) The applicant complies with section 286-102.5; and

(4) The examiner of drivers is satisfied that the applicant does not have outstanding charges and fines relating to the disposition of an abandoned vehicle.

(f) No driver's license shall be renewable by electronic or digital means or by mail:

(1) For more than two consecutive renewals, regardless of whether the license expires, as provided under section 286-106, on the eighth or fourth birthday after issuance; or

(2) Sixteen years have lapsed since the applicant had appeared in person[;

~~provided that this subsection shall not apply to a resident military person or that person's immediate family if the resident military person resides outside the State on official military orders~~].

[(g) Notwithstanding subsection (a), any applicant for a renewal of a driver's license who is a member of any component of the United States armed forces and who is on active federal service outside of the State at the time the applicant's license should be renewed, may file an application for a renewal of the driver's license, which shall be accompanied by verification of federal active service outside the State as required by the examiner of drivers, within ninety days of the applicant's return to the State or discharge from hospitalization. The examiner of drivers may waive the reactivation fee otherwise required by section 286-107.5.

~~(h)~~] (g) The state director of transportation shall adopt rules and regulations pursuant to chapter 91, necessary for the purposes of this section, including rules and regulations governing the effect to be given to convictions for violations of traffic laws of a foreign jurisdiction, upon license renewal procedures."

SECTION 31. Section 286-109, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Upon payment of the required fee and upon demonstrating the ability to operate a certain category or categories of motor vehicles to the satisfaction of the examiner of drivers, an applicant for a driver's license shall be issued a single license of a design approved by the director of transportation upon which is made a notation of:

(1) The person's full legal name, date of birth, gender designation, residence address, and license number;

(2) The category or categories of motor vehicles the applicant may operate;

(3) Any restrictive provisions to which the license is subject;

[~~(4)~~ ~~Veteran status, if desired by the applicant; provided that the notation shall be on the front of the license and shall not include any designation other than the term "veteran";~~] and

[~~(5)~~] (4) When the license is issued to a person under twenty-one years of age, a statement, in clearly legible print that shall contrast with the other information appearing on the license, which indicates the date on which the person will attain the age of twenty-one years.

As used in this subsection:

"Gender designation" includes the options of F, M, or X.

["Veteran" means any person who served in any of the uniformed services of the United States, including veterans of the Korean conflict and persons who served in the armed forces of the Republic of Korea, who fought under the command of the United Nations led by the United States, during the Korean conflict and are currently United States citizens, and was discharged under conditions other than dishonorable.]"

SECTION 32. Section 286-111, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Every application shall state the full name, date of birth, gender designation, occupation, [veteran status if applicable (including veterans of the Korean conflict and persons who served in the armed forces of the Republic of Korea, who fought under the command of the United Nations led by the United States, during the Korean conflict and are currently United States citizens) and desired by the applicant,] social security number if the applicant is eligible for a social security number, the residence address, and business address, if any, of the applicant, shall briefly describe the applicant, and shall state whether the applicant has theretofore been licensed as a driver, and, if so, when and in what state or country, and whether any such license has ever been suspended or revoked, or whether an application has ever been refused, and if so, the date of and reason for the suspension, revocation, or refusal.

The examiner of drivers shall not require documentation for an applicant's selection of gender designation or an applicant's request for an amendment to a gender designation other than the applicant's self-certification of their chosen gender designation; provided that the examiner of drivers shall not be prohibited from requiring documentation that may incidentally show an applicant's birth sex category if the documentation is necessary to establish that the applicant is legally entitled to a license.

For purposes of this subsection, "gender designation" shall have the same meaning as in section 286-109(a)."

SECTION 33. Section 286-235.5, Hawaii Revised Statutes, is amended to read as follows:

"§286-235.5 Persons exempt from licensure. The following persons shall be exempt from licensure under this part:

[~~(1)~~ Individuals who operate commercial motor vehicles for military purposes. This exception is limited to active-duty military personnel, members of the military reserves, members of the national guard on active duty, including personnel on full-time national guard duty, personnel on part-time national guard training, and national guard military technicians (civilians who are required to wear military uniforms), and active-duty United States Coast Guard personnel. This exception is not applicable to United States reserve technicians; and

~~(2)~~ ~~Federal,~~] federal, state, and county firefighters, and law enforcement officers who drive federal, state, or county fire trucks, including fire pumpers, aerial ladder trucks, and elevated platform trucks, or authorized emergency vehicles; provided that they are trained by the federal, state, or county government and the commercial motor vehicles are equipped with audible and visual signals and are not subject to normal traffic regulation. For purposes of this paragraph, "authorized emergency vehicle" shall have the same meaning as in section 291C-1."

SECTION 34. Section 286-303, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Every application for an identification card or duplicate of an identification card shall be made on a form developed by the director and furnished by the examiner of drivers, signed by the applicant, and signed by the applicant's parent or guardian if the applicant is under eighteen years of age. The application shall contain the following information:

(1) Name and complete address, including the number and street name, of the applicant's permanent residence;

(2) The applicant's occupation and any pertinent data relating thereto;

(3) The applicant's citizenship status;

[~~(4)~~ ~~The applicant's veteran status if applicable and desired by the applicant;~~

~~(5)~~] (4) The applicant's date and place of birth;

[~~(6)~~] (5) General description of the applicant, including the applicant's gender designation, height, weight, hair color, and eye color;

[~~(7)~~] (6) The applicant's left and right index fingerprints or, if clear impressions cannot be obtained, other identifying imprints as specified by rules of the director;

[~~(8)~~] (7) The social security number of the applicant; and

[~~(9)~~] (8) A digitized frontal photograph of the applicant's full face.

Each applicant shall present documentary evidence as required by the examiner of drivers of the applicant's age and identity, and the applicant shall swear or affirm that all information given is true and correct; provided that an applicant shall not be required to provide documentation to prove the applicant's gender designation other than the applicant's self-certification of their chosen gender designation; provided further that documentation that may incidentally show an applicant's birth gender may be required if necessary to establish that the applicant is legally entitled to an identification card.

For purposes of this subsection, "gender designation" shall have the same meaning as in section 286-109(a)."

SECTION 35. Section 291E-1, Hawaii Revised Statutes, is amended by amending the definition of "number plates" to read as follows:

""Number plates" refer to the number plates or special number plates, which are commonly known as license plates, that are issued under sections 249-9, 249-9.1, [~~249-9.2,~~] and 249-9.3 and that are required to be attached on a motor vehicle pursuant to sections 249-1 to 249-13."

SECTION 36. Section 302A-121, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-121[]] Board of education; members; student [~~and military representatives.~~] representative. (a) The board shall consist of nine members as follows:

(1) One member from the county of Hawaii;

(2) One member from the county of Maui;

(3) One member from the county of Kauai;

(4) Three members from the city and county of Honolulu; and

(5) Three at-large members; provided that the governor shall select an at-large member as the chairperson.

The members shall be appointed by the governor, with the advice and consent of the senate. The governor may remove or suspend for cause any member of the board.

(b) Pursuant to article XVIII, section 12, of the Hawaii State Constitution, the period of transition from the elected to the appointed board shall be as determined in section 21 of Act 5, Session Laws of Hawaii 2011.

(c) The members of the board shall serve without pay but shall be entitled to reimbursement for necessary expenses, including travel and board and lodging expenses, while attending meetings of the board or when actually engaged in business relating to the work of the board.

(d) Pursuant to section 302A-447, the state student council shall select a nonvoting public high school student representative to the board.

[~~(e) Pursuant to section 302A-1101(c), the board shall invite the senior military commander in Hawaii to appoint a nonvoting military representative to the board.~~]"

SECTION 37. Section 302A-1101, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1101 Department of education; board of education; superintendent of education. (a) There shall be a principal executive department to be known as the department of education, which shall be headed by a policy-making board to be known as the board of education. The board shall have power in accordance with law to formulate statewide educational policy, adopt student performance standards and assessment models, monitor school success, and appoint the superintendent of education as the chief executive officer of the public school system.

(b) The board shall appoint, and may remove, the superintendent by a majority vote of its members. The superintendent:

(1) May be appointed without regard to the state residency provisions of section 78-1(b);

(2) May be appointed for a term of up to four years; and

(3) May be terminated only for cause.

[(c) The board shall invite the senior military commander in Hawaii to appoint a nonvoting military representative to the board, who shall serve for a two-year term without compensation. As the liaison to the board, the military representative shall advise the board regarding state education policies and departmental actions affecting students who are enrolled in public schools as family members of military personnel. The military representative shall carry out these duties as part of the representative's official military duties and shall be guided by applicable state and federal statutes, regulations, and policies and may be removed only for cause by a majority vote of the members of the board.

~~(d)~~] (c) The board shall appoint the state public charter school commission which shall serve as the statewide charter authorizer for charter schools, with the power and duty to issue charters, oversee and monitor charter schools, hold charter schools accountable for their performance, and revoke charters."

SECTION 38. Section 302A-1404, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1404 Federal impact aid [~~military liaison~~]. [~~(a)~~] The department and the state public charter school commission or an authorizer, as appropriate, may retain and expend federal indirect overhead reimbursements for grants for the reimbursements as determined by:

(1) The director of finance and the superintendent; or

(2) The director of finance and the state public charter school commission or an authorizer, as appropriate.

[~~(b) Each fiscal year the department of education may set aside $100,000 of federal impact aid moneys received pursuant to this section to:~~

~~(1)~~ ~~Establish and fund a permanent, full-time military liaison position within the department of education; and~~

~~(2)~~ ~~Fund the joint venture education forum to facilitate interaction between the military community and the department of education.~~

SECTION 39. Section 304A-102, Hawaii Revised Statutes, is amended to read as follows:

"[[]§304A-102[]] Purposes of the university. The purposes of the university are to give thorough instruction and conduct research in, and disseminate knowledge of, agriculture, mechanic arts, mathematical, physical, natural, economic, political, and social sciences, languages, literature, history, philosophy, and such other branches of advanced learning as the board of regents from time to time may prescribe [~~and to give such military instruction as the board of regents may prescribe and that the federal government requires~~]. The standard of instruction shall be equal to that given and required in similar universities on the mainland United States. Upon the successful completion of prescribed courses, the board of regents may confer a corresponding degree upon every student who becomes entitled thereto."

SECTION 40. Section 304A-502, Hawaii Revised Statutes, is amended to read as follows:

"[[]§304A-502[]] Power of regents to grant tuition waivers. The board of regents, or its designated representatives, is authorized to grant, modify, or suspend tuition waivers.

The board may:

(1) Waive entirely or reduce the tuition fee or any of the other fees for graduate teaching and research assistants;

(2) Enter into agreements with government and university officials of any other state or foreign country to provide for reciprocal waiver of the nonresident tuition and fee differential;

(3) Waive the nonresident tuition and fee differential for selected students from Pacific and Asian jurisdictions when their presence would be beneficial to the university or the State; and

(4) Waive entirely or reduce the tuition fee or any of the other fees for students, resident or nonresident[~~; and~~

~~(5)~~ ~~Waive the nonresident tuition and fee differential for members in good standing of the following military units, regardless of their actual state of residence:~~

~~(A)~~ ~~The Hawaii national guard; and~~

~~(B)~~ ~~The federal reserve components of the Army, Navy, Air Force, Marine Corps, and Coast Guard who attend drills with units located within the State~~].

The board shall determine the percentage of allowable tuition and fee waivers for financial need and other university priorities. These tuition waivers and waivers of the nonresident tuition and fee differential shall be awarded in accordance with guidelines established by the board."

SECTION 41. Section 304A-802, Hawaii Revised Statutes, is amended to read as follows:

"§304A-802 College-credit equivalency program established; purpose; policies and procedures; eligibility. (a) There is established at the university and the community colleges a college-credit equivalency program. The purpose of this program is to award college credits to students who are enrolled in a degree or certificate program at the university or at a community college and who have successfully completed, at a high school, business school, trade school, or adult education school, [~~or military training program,~~] courses that are equivalent to courses offered for credit in the University of Hawaii system. [~~The program shall also award credits for professional experience gained through service in the United States armed forces.~~] Credits may also be awarded for work or other experiences at the discretion of the university.

(b) The university shall be responsible for the establishment of policies and procedures to administer the program. In this regard, the university, among other things, shall prepare and make public the following:

(1) The list of the high school, business school, trade school, and adult education school courses for which college credits may be earned;

(2) The number of credits that may be earned for each course; and

(3) The minimum standards or grades necessary to earn college credits[~~; and~~

~~(4)~~ ~~A learning assessment or other criteria to determine college-level learning gained during service in the United States armed forces~~]."

SECTION 42. Section 329-4, Hawaii Revised Statutes, is amended to read as follows:

"§329-4 Duties of the Hawaii advisory commission on drug abuse and controlled substances. The Hawaii advisory commission on drug abuse and controlled substances shall:

(1) Assist the department of health in coordinating all action programs of community agencies (state, county, [~~military,~~] or private) specifically focused on the problem of drug abuse;

(2) Assist the department of health in carrying out educational programs designed to prevent and deter abuse of controlled substances;

(3) Create public awareness and understanding of the problems of drug abuse;

(4) Sit in an advisory capacity to the governor and other state departments as may be appropriate on matters relating to the commission's work; and

(5) Act in an advisory capacity to the director of health in substance abuse matters under chapter 321, part XVI. For the purposes of this paragraph, "substance" shall include alcohol in addition to any drug on schedules I through IV of this chapter and any substance that includes in its composition volatile organic solvents."

SECTION 43. Section 431:8-327, Hawaii Revised Statutes, is amended to read as follows:

"§431:8-327 Prerequisites for license renewal. (a) To qualify for a license renewal, a licensee shall:

(1) Preceding a license renewal, complete the required number of credit hours specified in subsection (b) in approved continuing education courses; and

(2) Pay the fees as required under section 431:7-101.

(b) The required number of credit hours in approved continuing education courses shall be as follows:

(1) For a licensee authorized to sell surplus lines insurance but who does not hold a producer license, the requisite number of credit hours shall be twenty-four credit hours, consisting of twenty-one credit hours relating to property, marine and transportation, vehicle, general casualty, or surety insurance, and three credit hours relating to ethics training or relating to the insurance laws and rules.

(2) For a licensee who also holds a producer license to sell life or accident and health or sickness lines of insurance pursuant to article 9A, the total requisite number of credit hours shall be twenty-four credit hours, consisting of:

(A) Ten credit hours relating to life or accident and health or sickness insurance;

(B) Eleven credit hours relating to property, marine and transportation, vehicle, general casualty, or surety insurance; and

For purposes of this section, ethics training shall include but not be limited to the topics of fiduciary responsibility, commingling of funds, payment and acceptance of commissions, unfair claims practices, policy replacement considerations, and conflicts of interest.

(c) Continuing education equivalents, as determined and approved by the commissioner, may include the teaching of continuing education courses and holding certain professional designations, but shall not include the use of carryover credit hours earned in excess of the required hours in any two-year renewal cycle.

(d) Unless an extension of time has been granted in advance by the commissioner, a licensee's failure to satisfy all of the continuing education requirements by the renewal date shall result in that licensee's license being automatically placed on an inactive status. To reactivate a license, the licensee shall submit proof to the commissioner that the requisite number of credit hours has been completed and the licensee shall pay any required fees and penalties.

(e) After a licensee completes an approved continuing education course, the approved course provider shall issue to the licensee a certificate of completion in a form approved by the commissioner that certifies that the licensee has successfully completed the course. Both the licensee and a person authorized to sign on behalf of the approved course provider shall sign the certificate of completion. The approved course provider shall electronically submit the certificate of completion to the commissioner within fifteen days of course completion.

(f) This section shall not apply to a licensee granted an exemption by the commissioner from this section pursuant to section 431:8-322.

[(g) The commissioner may grant an extension of time to meet the requirements of this section to a licensee on extended active military duty for a period of time equal to the number of days the licensee was on active military duty, provided there are no federal laws mandating an extension of time in a specified situation.

~~(h)~~] (g) A licensee need not retake the surplus lines broker license examination; provided that all renewal requirements in this section are met or reactivation occurs within twelve months of the date of inactivation."

SECTION 44. Section 431:9A-107, Hawaii Revised Statutes, is amended to read as follows:

"§431:9A-107 License. (a) Except as provided in section 431:9A-112, a person who has met the requirements of sections 431:9A-105 and 431:9A-106 shall be issued an insurance producer license. An insurance producer may receive a license in one or more of the following lines of authority:

(1) Life: insurance coverage on human lives, including benefits of endowment and annuities, benefits in the event of death or dismemberment by accident, and benefits for disability income;

(2) Accident and health or sickness: insurance coverage for sickness, bodily injury, or accidental death and benefits for disability income;

(3) Property: insurance coverage for the direct or consequential loss or damage to property of every kind;

(4) Casualty: insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property;

(5) Variable life and variable annuity products: insurance coverage provided under variable life insurance contracts and variable annuities;

(6) Personal: property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;

(7) Credit: limited line credit insurance; or

(8) Any other line of insurance permitted under state law or rule.

(b) Except as provided in section 431:9A-112, an insurance producer license shall remain in effect so long as the fee set forth in section 431:7-101 is paid and the educational requirements for resident individual producers are timely met.

(c) An insurance producer who allows the producer's license to become inactive for nonpayment of the renewal fee may reinstate that license without the necessity of passing a written examination, if the fee payable and a penalty in the amount of double the then-unpaid renewal fees are paid within twelve months from the inactivation date and the producer is in compliance with all the requirements of chapter 431.

[(d) A licensed insurance producer who is unable to comply with license renewal procedures due to military service or an extenuating circumstance as determined by the commissioner may request a waiver of those procedures. The producer also may request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures.

~~(e)~~] (d) The license shall contain the licensee's name, address, personal identification number, and the date of issuance, the lines of authority, the expiration date, and any other information the commissioner deems necessary.

[~~(f)~~] (e) A licensee shall:

(1) Inform the commissioner by any means acceptable to the commissioner of any change of status within thirty days of the change; and

(2) Report any change of status to the business registration division if the licensee is a business entity registered with the department of commerce and consumer affairs pursuant to title 23 or title 23A, or if the licensee has registered a trade name pursuant to part II of chapter 482.

Failure to timely inform the commissioner or the business registration division of a change of status may result in a penalty pursuant to section 431:2-203.

As used in this subsection, "change of status" includes but shall not be limited to change of legal name, assumed name, trade name, business address, home address, mailing address, business phone number, business fax number, business electronic mail address, or business website address.

[~~(g)~~] (f) In order to assist in the performance of the commissioner's duties, the commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or any affiliates or subsidiaries that the National Association of Insurance Commissioners oversees, to perform any ministerial functions, including the collection of fees, related to producer licensing as agreed upon by the commissioner and the nongovernmental entity."

SECTION 45. Section 431:9A-111, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The commissioner may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases:

(1) To the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned or controlled by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer's business;

(2) To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license; or

[~~(3)~~ ~~To the designee of a licensed insurance producer entering active service in the armed forces of the United States of America; or~~

~~(4)~~] (3) In any other circumstance where the commissioner deems that the public interest will best be served by the issuance of this temporary license."

SECTION 46. Section 431:9A-124, Hawaii Revised Statutes, is amended to read as follows:

"§431:9A-124 Prerequisites for license renewal. (a) To qualify for a license renewal, a licensee shall:

(1) Preceding a license renewal, complete the required number of credit hours as set forth in subsection (b) in approved continuing education courses; and

(2) Pay the fees as required under section 431:7-101.

(b) The required number of credit hours shall be as follows:

(1) For a licensee authorized to sell lines of insurance in only one of the following groups:

(A) Life or accident and health or sickness; or

(B) Property, marine and transportation, vehicle, general casualty, or surety;

the requisite number of credit hours shall be twenty-four credit hours, consisting of twenty-one credit hours relating to the line of authority for which the license is held and three credit hours relating to ethics training or relating to the insurance laws and the insurance rules;

(2) For a licensee with a license to sell lines of insurance in both groups in paragraph (1), the total requisite number of credit hours shall be twenty-four credit hours, consisting of:

(A) Ten credit hours relating to paragraph (1)(A);

(B) Eleven credit hours relating to paragraph (1)(B); and

For purposes of this section, ethics training shall include but shall not be limited to the study of fiduciary responsibility, commingling of funds, payment and acceptance of commissions, unfair claims practices, policy replacement considerations, and conflicts of interest.

(d) Unless an extension of time has been granted in advance by the commissioner, a licensee's failure to satisfy all of the continuing education requirements by the renewal date shall result in that licensee's license being automatically placed on an inactive status. To reactivate a license, the licensee shall submit proof to the insurance division that the requisite number of credit hours has been completed and the licensee shall pay any required fees and penalties.

(e) After a licensee completes an approved continuing education course, the approved course provider shall issue to the licensee a certificate of completion in a form approved by the commissioner that certifies that the licensee has successfully completed the course. Both the licensee and a person authorized to sign on behalf of the approved course provider shall sign the certificate of completion. The approved course provider shall electronically submit the certificate of completion to the insurance division within fifteen days of course completion.

(f) This section shall not apply to a licensee granted an exemption by the commissioner from this section pursuant to section 431:9A-116.

~~(h)~~] (g) A licensee need not retake the producer license examination; provided that renewal requirements in this section are met or reactivation occurs within twelve months of the date of inactivation."

SECTION 47. Section 431:10C-119, Hawaii Revised Statutes, is amended to read as follows:

"§431:10C-119 Insurer's requirements. (a) Prior to licensing an insurer to transact a motor vehicle insurance business in this State, the commissioner:

(1) Shall effect a thorough examination of the insurer's business experience, financial soundness, and general reputation as an insurer in this and other states. In the discretion of the commissioner, this examination may include an examination of any or all of the business records of the insurer, and an audit of all or any part of the insurer's motor vehicle insurance business, each to be performed by the commissioner's staff or by independent consultants. No license shall be issued until the commissioner is satisfied as to the business experience, financial solvency, and the economic soundness of the insurer;

(2) Except for a member-owned reciprocal insurer and its wholly owned insurer subsidiaries, as specified in subsection (c), shall require of each insurer, and determine that satisfactory arrangements have been made for, the provision of a complete sales and claims service office in the State; provided that the establishment and maintenance of an office by licensed producers of an insurer in every county the insurer does business shall meet the requirements of this paragraph; provided further that the preceding shall not be required for the county of Kalawao; and

(3) Notwithstanding any other requirements of this section or of the insurance code, may require a bond in a reasonable amount and with deposits or sureties determined in the commissioner's discretion of any applicant for a license hereunder. The commissioner may, at any time, make and enforce such a requirement of any licensed insurer or self-insurer.

(b) The commissioner, prior to issuing a certificate of self-insurance to any person, shall require the applicant to provide for a complete claims service office and an officer for the purpose of service of process in this State.

[(c) A member-owned reciprocal insurer and its wholly owned insurer subsidiaries shall make satisfactory arrangements for claims service and adjustment and for policy service of all policies sold or issued to consumers in this State if:

~~(1)~~ ~~A majority of its members are members of the United States military services, veterans of the United States military services, current or former spouses or dependents of these persons; and~~

~~(2)~~ ~~The primary purpose of the insurer is to serve these persons.~~

~~The member-owned reciprocal insurer and its wholly owned insurer subsidiaries, upon request by the commissioner, shall provide in writing, specific information as to those arrangements.~~

~~(d)~~] (c) The commissioner shall adopt rules to permit any licensed accident and health or sickness insurer to secure a license to engage in the business of motor vehicle insurance to provide only those personal injury protection benefits defined in section 431:10C-103.5(a) and optional major medical coverages."

SECTION 48. Section 440E-26, Hawaii Revised Statutes, is amended to read as follows:

"[[]§440E-26[]] Chapter does not apply to [~~active duty armed forces, National Guard, armed forces reserve, or~~] Police Activities League. This chapter shall not apply to any mixed martial arts contest held as a recreational activity by [~~active duty armed forces, armed forces reserve, or National Guard personnel, or~~] the Police Activities League, when the contest is held under the supervision of a [~~recreational officer of the active duty armed forces, armed forces reserve, National Guard, or a~~] Police Activities League staff member."

SECTION 49. Section 457-9.2, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The board may extend the deadline for compliance with the continuing competency requirements and shall consider each case on an individual basis. Prior to the expiration of the license, a nurse licensee may submit a written request for an extension and any documentation requested by the board to substantiate the reason for the extension of the deadline for compliance with the continuing competency requirements of this section, based on [~~the following circumstances:~~

~~(1)~~ ~~Illness,~~] illness, as certified by a physician or osteopathic physician licensed under chapter 453 or advanced practice registered nurse licensed under chapter 457 in the jurisdiction in which the licensee was treated[~~; or~~

~~(2)~~ ~~Military service under extended active duty with the armed forces of the United States~~]."

SECTION 50. Section 461-8, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Beginning with the renewal for the licensing biennium commencing on January 1, 2008, and every biennial renewal thereafter, each licensee shall have completed thirty credit hours in continuing education courses within the two-year period preceding the renewal date, regardless of the licensee's initial date of licensure; provided that a licensee who has graduated from an accredited pharmacy school within one year of the licensee's first license renewal period shall not be subject to the continuing education requirement for the first license renewal. The board may extend the deadline for compliance with the continuing education requirement based on any of the following:

(1) Illness, as certified by a physician or osteopathic physician licensed under chapter 453 or licensed in the jurisdiction in which the licensee was treated;

[~~(2)~~ ~~Military service under extended active duty with the armed forces of the United States;~~

~~(3)~~] (2) Lack of access to continuing education courses due to the practice of pharmacy in geographically isolated areas; and

[~~(4)~~] (3) Inability to undertake continuing education due to incapacity, undue hardship, or other extenuating circumstances."

SECTION 51. Section 461J-10.14, Hawaii Revised Statutes, is amended to read as follows:

"[[]§461J-10.14[]] Exemption from continuing competence requirements. (a) Prior to the expiration of a renewal period, a licensee may submit a written request to the board for an exemption from the continuing competence requirements in this chapter.

(b) The request for an exemption shall include the following information:

(1) Evidence that, during the two-year period prior to the expiration of the license, the licensee was residing in another country for one year or longer, reasonably preventing completion of the continuing competence requirements;

(2) Evidence that, during the two-year period prior to the expiration of the license, the licensee was ill or disabled for one year or longer as documented by a licensed physician, surgeon, or clinical psychologist, preventing completion of the continuing competence requirements; or

(3) Evidence that, during the two-year period prior to the expiration of the license, a dependent family member of the licensee was ill or disabled for one year or longer as documented by a licensed physician, surgeon, or clinical psychologist, preventing completion of the continuing competence requirements.

(c) The above exemptions shall not be granted for more than one renewal period. In the event a licensee cannot complete the continuing competence requirements during the two-year period after receiving an exemption, the licensee may only renew the license on an inactive status.

[(d) When a licensee is absent from the State because of military service for a period of one year or longer during the two-year renewal period, preventing completion of the continuing competence requirement, the board may provide an exemption from the continuing competence requirement for more than one renewal period.]"

SECTION 52. Section 464-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The board shall require continuing education to renew a license for architects effective as of the renewal date for a license expiring on April 30, 2008, and for every biennial renewal period thereafter. All continuing education courses shall be relevant to public protection subjects and shall be approved by the board as provided in the board's rules; provided that:

(1) Architects initially licensed in the first year of the biennium shall have completed eight continuing education credit hours;

(2) Architects initially licensed in the second year of the biennium shall not be required to complete any continuing education credit hours;

(3) All other architects shall have completed sixteen continuing education credit hours;

(4) The board shall randomly audit an architect's continuing education courses, and shall establish guidelines for random audits in rules adopted in accordance with chapter 91;

(5) An architect whose license is not renewed because of failure to comply with the continuing education requirement shall have two years from the expiration date of the license to restore the license by complying with all applicable continuing professional education requirements and paying the appropriate renewal and penalty fees. After the two-year restoration period, the licensee shall be required to apply as a new applicant, and meet the requirements in effect at that time; and

(6) An architect licensee shall not be subject to the continuing education requirement if the architect otherwise meets all other renewal requirements and:

[~~(A)~~ ~~Is a member of the armed forces, National Guard, or a reserve component on active duty and deployed during a state or national crisis as "state or national crisis" is defined in chapter 436B;~~

~~(B)~~] (A) Is ill or disabled for a significant period of time as documented by a licensed physician, and is unable to meet the continuing education requirements of this subsection;

[~~(C)~~] (B) Can demonstrate undue hardship that prevented the licensee from meeting the continuing education requirements of this subsection; or

[~~(D)~~] (C) Is retired from the practice of architecture and is no longer performing or providing architectural services;

provided that any exemption from the continuing education requirements shall be subject to the board's approval."

SECTION 53. Section 471-9, Hawaii Revised Statutes, is amended to read as follows:

"§471-9 Licenses. (a) Except as otherwise provided in this chapter, the Hawaii board of veterinary medicine shall issue a license to engage in the practice of veterinary medicine to all persons meeting the requirements of this chapter upon payment of a license fee.

(b) All licenses issued by the board shall expire on June 30 of each even-numbered year next following the date of issuance. Failure to renew the license on or before June 30 of each even-numbered year shall automatically constitute a forfeiture of the license; provided that the license shall be restored upon the submission of a written application, a renewal fee, a penalty fee, and proof of completing the applicable continuing education credits to the board.

(c) Prior to the June 30, 2016, payment deadline for license renewal, and prior to every license renewal thereafter, a licensee shall:

(1) Pay all required fees; and

(2) Complete at least twenty credit hours of continuing education within the two-year period preceding the renewal date.

(d) A licensee who has graduated from an accredited veterinary school within one year of the licensee's first license renewal shall not be subject to the continuing education requirement for the first license renewal.

(e) Each licensee shall be responsible for maintaining the licensee's continuing education records. At the time of renewal, each licensee shall certify under oath that the licensee has complied with the continuing education requirement of this section. The board may require a licensee to submit, in addition to the certification, evidence satisfactory to the board that demonstrates compliance with the continuing education requirement of this section.

(f) The board may conduct random audits of licensees to determine compliance with the continuing education requirement. The board shall provide written notice of an audit to a licensee randomly selected for audit. Within sixty days of notification, the licensee shall provide the board with documentation verifying compliance with the continuing education requirement established by this section.

[(g) Notwithstanding any other provision, no license shall expire while the licensee is serving on active duty in the armed forces of the United States during any emergency declared by the President or Congress and six months after the termination thereof.]"

SECTION 54. Section 480J-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each installment loan transaction and renewal shall meet the following requirements:

(1) Any transaction and renewal shall be documented in a written agreement pursuant to section 480J-3;

(2) The total amount of the installment loan shall not be greater than $1,500 pursuant to section 480J-5(a);

(3) The total amount of loan charges an installment lender may charge, collect, or receive in connection with an installment loan shall not exceed fifty per cent of the principal loan amount;

(4) Subject to paragraph (3), a monthly maintenance fee may be charged by the lender; provided that thirty days shall equal one month and for any fraction of a month the fee shall be prorated on a daily basis not to exceed the following:

(A) $25 monthly fee on a loan of an original principal loan amount up to $299.99; provided further that a fraction of a month shall use a daily factor of 83 cents per day;

(B) $30 monthly fee on a loan of an original principal loan amount of at least $300 and up to $699.99; provided further that a fraction of a month shall use a daily factor of $1 per day; and

(C) $35 monthly fee on a loan of an original principal loan amount of at least $700 and greater; provided further that a fraction of a month shall use a daily factor of $1.17 per day;

provided further that the monthly maintenance fee shall not be added to the loan balance upon which the interest is charged[; provided further that an installment lender shall not charge, collect, or receive a monthly maintenance fee if the borrower is a person on active duty in the armed forces of the United States or a dependent of that person];

(5) The minimum contracted repayment term of the installment loan shall be two months if the contracted loan amount is $500 or less, or four months if the contracted loan amount is $500.01 or more; provided that, for purposes of meeting the required minimum contracted repayment term, an installment lender may calculate one month as twenty-eight days or longer;

(6) All repayment schedule due dates shall be dates upon which an installment lender is open for business to the public at the place of business where the installment loan was made;

(7) An installment lender shall accept prepayment in full or in part from a consumer prior to the loan due date and shall not charge the consumer a fee or penalty if the consumer opts to prepay the loan; provided that to make a prepayment, all past due interest and fees shall be paid first;

(8) The loan amount shall be fully amortized over the term of the loan, and maintenance fees shall be applied in arrears on a monthly basis;

(9) A consumer's repayment obligations shall not be secured by a lien on any real or personal property;

(10) An installment lender may offer to a consumer the option to make a payment through the consumer's debit card and may charge not more than a $1 convenience fee; provided that the installment lender shall be prohibited from requiring this form of payment. The form of payment decision shall rest with the consumer. The installment lender shall not charge the consumer a non-sufficient funds fee for rejected payments through the use of the consumer's debit card. This $1 convenience fee shall not be considered loan charges[;]

(11) An installment lender shall not charge a consumer any loan charges for an installment loan, other than the fees permitted by this chapter;

(12) The written agreement required under section 480J-3 shall not require a consumer to purchase add-on products, such as credit insurance; and

(13) The maximum contracted repayment term of the installment loan shall be twelve months."

SECTION 55. Section 514B-98.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Before the commission brings an action in any court of competent jurisdiction pursuant to subsection (a) against any person who executed an affidavit pursuant to this subpart, it may consider whether the following extenuating circumstances affected the person's ability to comply with the law:

(1) Serious illness of any of the owner-occupants who executed the affidavit or of any other person who was to or has occupied the residential unit;

(2) Unforeseeable job [~~or military~~] transfer;

(3) Unforeseeable change in marital status, or change in parental status; or

(4) Any other unforeseeable occurrence subsequent to execution of the affidavit.

If the commission finds that extenuating circumstances exist, the commission may cease any further action and order release of any net proceeds held in abeyance."

SECTION 56. Section 514B-146.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The association's power of sale provided in section 514B-146(a) may not be exercised against:

(1) Any lien that arises solely from fines, penalties, legal fees, or late fees, and the foreclosure of any such lien shall be filed in court pursuant to part IA of chapter 667;

[~~(2)~~ Any unit owned by a person who is on military deployment outside of the State of Hawaii as a result of active duty military status with any branch of the United States military, and the foreclosure of any such lien shall be filed in court pursuant to part IA of chapter 667; provided that this paragraph shall not apply if the lien of the association has been outstanding for a period of one year or longer;] or

[~~(3)~~] (2) Any unit while the nonjudicial or power of sale foreclosure has been stayed pursuant to section 667-92(c)."

SECTION 57. Section 516-33, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as otherwise provided under section 516-28, no application to purchase shall be accepted nor shall any sale of any residential houselot within a development tract be made to any person unless the person meets the following requirements:

(1) Is at least eighteen years of age;

(2) Is a bona fide resident of the State and resides on the lot, except in hardship circumstances as determined by the corporation on a case by case basis where such inability to reside on the lot arises out of a temporary job [~~or military~~] transfer, a temporary educational sabbatical or the serious illness of the person; provided further that if either the person or the lessor disagree with the corporation's determination, they shall be entitled to a contested case proceeding under chapter 91 in which both the person and lessor shall be parties;

(3) Has legal title to, or pursuant to an agreement of sale an equitable interest in, a residential structure situated on the leased lot applied for; provided that for the purposes of this section, the vendor under such agreement of sale shall not be eligible to purchase the lot. An agreement of sale means an executory contract for the sale and purchase of real property which binds one party to sell and the other party to buy property which is the subject matter of the transaction;

(4) Has a letter of credit, certificate of deposit, proof of funds, or approved application from any lending institution demonstrating that the person will be able to promptly pay the corporation for the leased fee interest in the lot;

(5) Submits an application in good faith in such form as is acceptable to the corporation;

(6) Executes a contract for purchase of the fee interest in such form as is acceptable to the corporation; and

(7) Does not own in fee simple lands suitable for residential purposes for such person within the county and in or reasonably near the place of business of such person or has or have pending before the Hawaii housing finance and development corporation an unrefused application to lease or purchase a lot in a development tract. A person is deemed to own lands herein if the person, the person's spouse, or both the person and the person's spouse (unless separated and living apart under a decree of a court of competent jurisdiction) own lands."

SECTION 58. Section 531B-4, Hawaii Revised Statutes, is amended to read as follows:

"[[]§531B-4[]] Right to control disposition; priority. [~~(a)~~] Unless a decedent has left directions in writing for the disposition of remains pursuant to section 531B-3 or 531B-5 or a person has forfeited the right of disposition pursuant to section 531B-6, the following persons, in the priority listed, have the right to control the disposition of the decedent's remains and the location, manner, and conditions of disposition of the decedent's remains:

(1) A person designated by the decedent in a testamentary disposition or a written instrument executed in accordance with section 531B-5;

(2) The surviving spouse, if the decedent was legally married at the time of death; the surviving partner, as defined in section 572B-1, if the decedent had legally entered into a civil union at the time of death; or the surviving reciprocal beneficiary, as defined in section 572C-3, if the decedent was in a reciprocal beneficiary relationship at the time of death;

(3) The sole surviving child of the decedent, or if there is more than one surviving child, the majority of the surviving children. Less than the majority of the surviving children shall be vested with the rights and duties of this section if they have used reasonable efforts to notify all other surviving children and the other surviving children cannot be located or have not responded within five days of the notification of the decedent's death;

(4) The surviving parent or parents of the decedent. Only one surviving parent shall be vested with the rights and duties of this section if that surviving parent used reasonable efforts to notify the other surviving parent and the other surviving parent cannot be located or has not responded within five days of the notification of the decedent's death;

(5) The surviving sibling of the decedent, or if there is more than one surviving sibling, the majority of the surviving siblings. Less than the majority of the surviving siblings shall be vested with the rights and duties of this section if they have used reasonable efforts to notify all other surviving siblings and the other surviving siblings cannot be located or have not responded within five days of the notification of the decedent's death;

(6) The surviving grandparent of the decedent, or if there is more than one surviving grandparent, the majority of the surviving grandparents. Less than the majority of the surviving grandparents shall be vested with the rights and duties of this section if they have used reasonable efforts to notify all other surviving grandparents and the other surviving grandparents cannot be located or have not responded within five days of the notification of the decedent's death;

(7) The surviving grandchild of the decedent, or if there is more than one surviving grandchild, the majority of the surviving grandchildren. Less than the majority of the surviving grandchildren shall be vested with the rights and duties of this section if they have used reasonable efforts to notify all other surviving grandchildren and the other surviving grandchildren cannot be located or have not responded within five days of the notification of the decedent's death;

(8) The guardian of the decedent at the time of the decedent's death, if one had been appointed;

(9) The personal representative of the estate of the decedent;

(10) The person in the next degree of kinship to the decedent, in descending order, subject to descent and distribution under the laws of succession of the State. If there is more than one person of the same degree of kinship to the decedent, any person of that degree may exercise the right of disposition;

(11) If the disposition of the remains of the decedent is the responsibility of the State or a political subdivision of the State, the public officer, administrator, or employee responsible for arranging the final disposition of decedent's remains; and

(12) In the absence of any person under paragraphs (1) through (10) of this section, any other person willing to assume the responsibilities to act and arrange the final disposition of the decedent's remains, after attesting in writing that a good faith effort has been made to notify the individuals under paragraphs (1) through (10) of the decedent's death, and no persons have agreed to assume the responsibilities or have responded within five days of the notification.

[(b) If a United States Department of Defense Record of Emergency Data, DD Form 93, or its successor form, was in effect at the time of death for a decedent who died in a manner described by title 10 United States Code sections 1481(a)(1) through (8), the DD Form 93 controls any other written instrument described in section 531B-3 or 531B-5 with respect to designating a person to control the disposition of the decedent's remains. Notwithstanding section 531B-3 or 531B-5, the form is legally sufficient if it is properly completed, signed by the decedent, and witnessed in the manner required by the form.]"

SECTION 59. Section 605-2, Hawaii Revised Statutes, is amended to read as follows:

"§605-2 Attorneys; license required. Except as provided by the rules of court, no person shall be allowed to practice in any court of the State unless that person has been duly licensed so to do by the supreme court; provided that nothing in this chapter shall prevent any person, plaintiff, defendant, or accused, from appearing in person before any court, and there prosecuting or defending that person's, plaintiff's, defendant's, or accused's own cause, without the aid of legal counsel; provided further that in the district courts [~~sections 605-13 and~~] section 633-28 shall apply."

PART III

SECTION 60. Chapter 124B, Hawaii Revised Statutes, is repealed.

SECTION 61. Chapter 311D, Hawaii Revised Statutes, is repealed.

SECTION 62. Chapter 363, Hawaii Revised Statutes, is repealed.

SECTION 63. Chapter 657D, Hawaii Revised Statutes, is repealed.

SECTION 64. Chapter 88, part I, subpart E, Hawaii Revised Statutes, is repealed.

SECTION 65. Section 5-22, Hawaii Revised Statutes, is repealed.

["~~§5-22 Hawaii medal of honor.~~ ~~(a) The Hawaii medal of honor may be awarded on behalf of the people of the State of Hawaii to an individual who has been killed in action while:~~

~~(1)~~ ~~Engaged in an action against an enemy of the United States;~~

~~(2)~~ ~~Engaged in military operations involving conflict with an opposing foreign force;~~

~~(3)~~ ~~Serving with friendly foreign forces engaged in an armed conflict against an opposing armed force in which the United States is not a belligerent party;~~

~~(4)~~ ~~Serving in a combat zone as designated by presidential order;~~

~~(5)~~ ~~Serving in direct support of military operations in a combat zone if that service is designated as such by the United States Department of Defense; or~~

~~(6)~~ ~~Performing duty subject to hostile fire or imminent danger if that duty qualifies the individual for special military pay as determined by the United States Department of Defense.~~

~~(b) A recipient of the Hawaii medal of honor may have the recipient's name entered on the Hawaii medal of honor roll.~~

~~(c) Individuals eligible to receive the Hawaii medal of honor include:~~

~~(1)~~ ~~Members of the Hawaii National Guard who were legal residents of Hawaii and were activated into service at the time they were killed in action;~~

~~(2)~~ ~~Members of the United States military reserves who were legal residents of Hawaii and were activated into service at the time they were killed in action;~~

~~(3)~~ ~~Members of the regular United States armed forces who were:~~

~~(A)~~ ~~Legal residents of Hawaii at the time they were killed in action; or~~

~~(B)~~ ~~Stationed in Hawaii by a proper order of the United States Department of Defense at the time they were killed in action; and~~

~~(4)~~ ~~Members~~ ~~of the Hawaii National Guard or United States military reserves who were activated into service, or members of the regular United States armed forces, who:~~

~~(A)~~ ~~Attended a public or private educational institution in Hawaii at some period during their lives; and~~

~~(B)~~ ~~Were killed in action.~~

~~(d) The Hawaii medal of honor shall be awarded solely by a concurrent resolution:~~

~~(1)~~ ~~Introduced by:~~

~~(A)~~ ~~The president of the senate;~~

~~(B)~~ ~~The speaker of the house of representatives; or~~

~~(C)~~ ~~The duly authorized representative of the president of the senate or the speaker of the house of representatives; and~~

~~(2)~~ ~~Adopted by both houses of the legislature.~~"]

SECTION 66. Section 121-10.5, Hawaii Revised Statutes, is repealed.

["[~~§121-10.5]~~ Prisoner of war and missing in action designations. The State of Hawaii hereby recognizes the designations of prisoner of war and missing in action as valid descriptions of casualty status and category classification for military personnel."]

SECTION 67. Section 122A-16, Hawaii Revised Statutes, is repealed.

["~~§122A-16 Courts-martial; nonjudicial punishment.~~ Any limitations in chapter 124B to the contrary notwithstanding, whenever this chapter specifically authorizes an act to be punished by court-martial or nonjudicial punishment, the court-martial may be convened or nonjudicial punishment imposed and punishment administered as though the act complained of were a violation of the punitive articles of chapter 124B."]

SECTION 68. Section 231-15.8, Hawaii Revised Statutes, is repealed.

["~~§231-15.8 Time for performing certain acts postponed by reason of service in combat zone.~~ (a) This section shall apply to state tax laws set forth in this title 14 that provide for the filing with the director of taxation of a return or statement of the tax or payment of the amount taxable.

(b) This section applies to any individual serving in the armed forces of the United States, or serving in support of the armed forces, in an area designated by the President of the United States by Executive Order as a combat zone for purposes of section 112 (with respect to certain combat pay of members of the armed forces) of the federal Internal Revenue Code of 1986, as amended, at any time during the periods designated by the President by Executive Order as the periods of combatant activities in the zone for the purposes of section 112, or when deployed outside the United States away from the individual's permanent duty station while participating in an operation designated by the Secretary of Defense as a contingency operation (as defined in section 101(a)(13) of title 10, United States Code) or which became such a contingency operation by operation of law, at any time during the period designated by the President by Executive Order as the period of combatant activities in such zone for purposes of such section or at any time during the period of such contingency operation, or hospitalized as a result of injury received while serving in such zone or operation during such time.

The period of service in the zone or operation, plus the period of continuous qualified hospitalization attributable to the injury, and the next one hundred eighty days thereafter, shall be disregarded in determining in respect of any tax liability (including any interest, penalty, additional amount, or addition to the tax) of the individual:

~~(1)~~ ~~Whether any of the following acts was performed within the time prescribed therefor:~~

~~(A)~~ ~~Filing any tax return (except income tax withheld at source);~~

~~(B)~~ ~~Payment of any tax (except income tax withheld at source) or any installment thereof or any other liability to the State in respect of such tax;~~

~~(C)~~ ~~Filing a tax appeal pursuant to chapter 232 or an action to recover moneys paid under protest pursuant to section 40-35(b) if the payment was for tax liability imposed pursuant to this title 14;~~

~~(D)~~ ~~Allowance of a credit or refund of any tax;~~

~~(E)~~ ~~Filing a claim for credit or refund of any tax;~~

~~(F)~~ ~~Bringing suit upon any claim for credit or refund;~~

~~(G)~~ ~~Assessment of any tax;~~

~~(H)~~ ~~Giving or making any notice or demand for the payment of any tax or with respect to any liability to the State in respect of any tax;~~

~~(I)~~ ~~Collection by the director, by levy or otherwise, of the amount of any liability in respect of any tax;~~

~~(J)~~ ~~Bringing suit by the State or any representative of the State on its behalf in respect of any liability in respect of any tax; and~~

~~(K)~~ ~~Any other act required or permitted under the tax or revenue laws of the State pursuant to rules adopted by the director.~~

~~(2)~~ ~~The amount of any credit or refund.~~

(c) This section shall apply to the spouse of any individual entitled to the benefits of this section. The preceding sentence shall not cause this section to apply for any spouse for any taxable year beginning more than two years after the date designated under section 112 (with respect to certain combat pay of members of the armed forces) of the federal Internal Revenue Code of 1986, as amended, as the date of termination of combatant activities in a combat zone.

(d) The period of service in a designated combat zone shall include the period during which an individual entitled to benefits under this section is in a missing status, within the meaning of section 6013(f)(3) (with respect to joint return where an individual is in missing status) of the federal Internal Revenue Code of 1986, as amended.

(e) Notwithstanding subsection (b), any action or proceeding authorized by section 231-24 (regardless of the taxable year for which the tax arose) as well as any other action or proceeding authorized by law in connection therewith, may be taken, begun, or prosecuted. In any other case in which the director determines that collection of the amount of any assessment would be jeopardized by delay, subsection (b) shall not operate to stay collection of the amount by levy or otherwise as authorized by law. There shall be excluded from any amount assessed or collected pursuant to this subsection the amount of interest, penalty, additional amount, and addition to the tax, if any, in respect of the period disregarded under subsection (b). In any case to which this subsection relates, if the director is required to give any notice to or make any demand upon any person, the requirement shall be deemed to be satisfied if the notice or demand is prepared and signed, in any case in which the address of the person last known to the director is in an area for which United States post offices under instructions of the Postmaster General, by reason of the combatant activities, are not accepting mail for delivery at the time the notice or demand is signed. In this case the notice or demand shall be deemed to have been given or made upon the date it is signed.

(f) The assessment or collection of any tax or of any liability to the State in respect of any tax or any action or proceeding by or on behalf of the State in connection therewith, may be made, taken, begun, or prosecuted in accordance with law, without regard to subsection (b), unless prior to the assessment, collection, action, or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (b).

~~(g) Treatment of individuals performing Desert Shield services:~~

~~(1)~~ Any individual who performed Desert Shield services (and the spouse of the individual) shall be entitled to the benefits of this section in the same manner as if the services were services referred to in subsection (b).

~~(2)~~ For purposes of this subsection, "Desert Shield services" means any services in the armed forces of the United States or in support of the armed forces if these services are performed in the area designated by the President as the "Persian Gulf Desert Shield area" and the services are performed during the period beginning on August 2, 1990, and ending on the date on which any portion of the Persian Gulf Desert Shield area is designated by the President as a combat zone pursuant to section 112 (with respect to certain combat pay of members of the armed forces) of the federal Internal Revenue Code of 1986, as amended.

(h) For purposes of this section, "qualified hospitalization" means any hospitalization outside the United States and any hospitalization inside the United States, except that not more than five years of hospitalization inside the United States may be taken into account under this subsection. The five-year period of qualified hospitalization inside the United States shall not apply for purposes of applying this section with respect to the spouse of an individual entitled to the benefits of subsection (b).

(i) If an individual is entitled to the benefits of this section with respect to any return and the return is timely filed (determined after the application of subsection (b)) section 231-23(d)(1) with respect to the limitations for computing interest shall not apply and interest shall be paid from the due date of the return regardless of when the return is filed.

(j) If an individual is entitled to the benefits of subsection (b), then, with respect to claiming any credit pursuant to state tax laws set forth in this title 14 and any general credit enacted pursuant to article VII, section 6, of the state constitution, the limitation period prescribed for such claims shall be determined after the application of subsection (b)."]

SECTION 69. Section 235-100, Hawaii Revised Statutes, is repealed.

["~~§235-100 Persons in military service.~~ The collection from any person in the military service of any tax on the income of such person, whether falling due prior to or during the person's period of military service (which term, as used in this section, shall have the same meaning as in the Soldiers' and Sailors' Civil Relief Act of 1940, as amended), shall be deferred for a period extending not more than six months after the termination of the person's period of military service if such person's ability to pay such tax is materially impaired by reason of such service. No interest on any amount of tax, collection of which is deferred for any period under this section, and no penalty for nonpayment of such amount during such period, shall accrue for such period of deferment by reason of such nonpayment. The running of any statute of limitations against the collection of such tax by distraint or otherwise shall be suspended for the period of military service of any individual the collection of whose tax is deferred under this section, and for an additional period of nine months beginning with the day following the period of military service."]

SECTION 70. Section 235-100.5, Hawaii Revised Statutes, is repealed.

["[~~§235-100.5] Abatement of income taxes of members of armed forces on death.~~ Section 692 (with respect to income taxes of members of armed forces on death) of the Internal Revenue Code shall be operative for the purposes of this chapter and the department shall have the authority to abate income taxes as provided in section 692.

~~For the purposes of this section "member of the Armed Forces of the United States" shall have the same meaning as provided by section 7701(a)(15) of the Internal Revenue Code.~~"]

SECTION 71. Section 249-6.5, Hawaii Revised Statutes, is repealed.

["[~~§249-6.5] Exemption for National Guard, military reserves, and other active duty military personnel claiming Hawaii as their residence of record.~~ ~~One noncommercial motor vehicle registered to a member of the National Guard, military reserve, or armed service, including the Coast Guard, who is:~~

~~(1)~~ ~~Assigned to a unit in the State; and~~

~~(2)~~ ~~A member in good standing,~~

~~shall be exempt from the vehicle weight tax provided for in this chapter.~~"]

SECTION 72. Section 249-9.2, Hawaii Revised Statutes, is repealed.

["~~§249-9.2 Special number plates; military service.~~ (a) In lieu of the number plates contracted on behalf of the counties by the director of finance of the city and county of Honolulu, the director of finance shall provide, for a fee, one set of special number plates upon the receipt of an application together with:

~~(1)~~ ~~Specific proof that the applicant was awarded the Purple Heart by the United States Department of Defense for wounds received in military or naval combat against an armed enemy of the United States;~~

~~(2)~~ ~~Certification that the applicant is a veteran;~~

~~(3)~~ Specific proof that the applicant was serving the United States in the military or as a civilian, on Oahu, or offshore at a distance of not more than three miles at the time of the December 7, 1941, attack on Pearl Harbor. Certification from the Hawaii state chairperson of the Pearl Harbor Survivors Association shall constitute sufficient proof;

~~(4)~~ ~~Specific proof that the applicant was confined as a prisoner of war while providing military service to the United States;~~

~~(5)~~ Certification from the United States Department of Veterans Affairs or the state office of veterans' services that the applicant is a combat veteran or a veteran of the Vietnam conflict, the Korean conflict, World War II, the Persian Gulf conflict, the Iraq war, or the Afghanistan war; or

~~(6)~~ Specific proof that the applicant would qualify for a gold star lapel button under the criteria established by title 10 United States Code section 1126; provided that the applicant shall not be disqualified for the special number plates because the applicant is the grandparent of the deceased member of the United States armed forces;

provided that applicants, except civilian applicants under paragraph (3) and civilian applicants and applicants who are currently serving the United States in the military under paragraph (6), shall also provide a copy of the applicant's most recent discharge paper or separation document that indicates an honorable discharge or general (under honorable conditions) discharge from active duty.

~~(b) The design of the plates for:~~

~~(1)~~ ~~Purple heart recipients shall include the words "COMBAT WOUNDED";~~

~~(2)~~ ~~Veterans shall include the word "VETERAN";~~

~~(3)~~ ~~Pearl Harbor survivors shall include the words "PEARL HARBOR SURVIVOR";~~

~~(4)~~ ~~Former prisoners of war shall include the words "FORMER PRISONER OF WAR";~~

~~(5)~~ ~~Combat veterans shall include the words "COMBAT VETERAN";~~

~~(6)~~ ~~Veterans of the Vietnam conflict shall include the words "VIETNAM VETERAN";~~

~~(7)~~ ~~Veterans of the Korean conflict shall include the words "KOREA VETERAN";~~

~~(8)~~ ~~Veterans of World War II shall include the words "WORLD WAR II VETERAN";~~

~~(9)~~ ~~Veterans of the Persian Gulf conflict shall include the words "PERSIAN GULF VETERAN";~~

~~(10)~~ ~~Veterans of the Iraq war shall include the words "IRAQ VETERAN";~~

~~(11)~~ ~~Veterans of the Afghanistan war shall include the words "AFGHANISTAN VETERAN"; and~~

~~(12)~~ ~~Gold star family members, including grandparents, shall include the words "GOLD STAR FAMILY".~~

~~These designations shall be imprinted on the left side of the license plates in a manner similar to congressional and honorary consul license plates.~~

(c) Registration certificates and license plates issued under this section shall not be transferable to any other person. Special number plates for military service shall be assigned to a noncommercial passenger motor vehicle, a noncommercial motorcycle, or motor scooter registered in the name of the qualified applicant and shall be available in any category of special number plates for military service. Prior to the transfer of the ownership of the qualified person's vehicle to another party, the special number plates shall be surrendered to the director of finance as a condition to the issuance of replacement special number plates; provided that the director of finance shall allow the survivor of the qualified person, upon request, to retain the front special number plate as a memorial.

(d) The director of finance shall authorize the design of a license plate that is readily identifiable and distinguishable under actual traffic conditions and shall adopt rules pursuant to chapter 91 to carry out this section."]

SECTION 73. Section 249-31.5, Hawaii Revised Statutes, is repealed.

["~~§249-31.5 Exemptions from registration fees for certain vehicles; disabled veterans.~~ ~~(a) A disabled veteran who:~~

~~(1)~~ ~~Is a resident of Hawaii;~~

~~(2)~~ ~~Has been other than dishonorably discharged from the United States uniformed armed forces; and~~

~~(3)~~ Is determined by the United States Department of Veterans Affairs or its predecessor to have a service-connected one hundred per cent disability rating for compensation or a service-connected disability rating of one hundred per cent,

shall be exempt from payment of all annual vehicle registration fees as required by section 249-31; provided that this exemption shall not extend to any vehicle used for commercial purposes or to more than one vehicle owned by the disabled veteran.

~~(b) The director of the office of veterans' services, in consultation with the policy advisory board on~~ [veterans'] services, shall submit a report to the legislature and the department of taxation no later than twenty days prior to the convening of each regular session providing the legislature and the department of taxation with the total number of disabled veterans who qualify under this section for the exemption from annual vehicle registration fees."]

SECTION 74. Section 286-106.5, Hawaii Revised Statutes, is repealed.

["~~§286-106.5 Expiration of licenses; out-of-country active duty military personnel and dependents.~~ Notwithstanding section 286-106, the expired driver's license of a member of any component of the United States armed forces who is on active federal service, or the member's dependent if the dependent accompanied the member, and whose driver's license expired while the member was deployed outside the United States, shall remain valid for ninety days after the service member's return to the United States."]

SECTION 75. Section 302A-627, Hawaii Revised Statutes, is repealed.

["~~§302A-627 Credit for military service.~~ Any teacher who served on active duty with the armed forces of the United States shall be given credit by the department for the teacher's military service in the determination of the teacher's salary, the teacher's eligibility for leaves of absence, and for all other purposes of seniority. Both reentering and entering teachers shall have each year of their military service or six months thereof credited as a year of teaching experience; provided that no more than four years of credit for military service shall be allowed. Evidence of military service shall be by certificate."]

SECTION 76. Section 431:2-201.8, Hawaii Revised Statutes, is repealed.

["[~~§431:2-201.8] Sales to members of the armed forces.~~ Pursuant to the Military Personnel Financial Services Protection Act, Pub. L. No. 109-290, the commissioner shall have the authority to adopt rules to protect service members of the United States armed forces from dishonest and predatory life insurance sales practices by declaring certain life insurance practices, identified in the rules, to be false, misleading, deceptive, or unfair."]

SECTION 77. Section 436B-14.5, Hawaii Revised Statutes, is repealed.

["[~~§436B-14.5] Extension of licenses for members of the armed forces, National Guard, and reserves.~~ (a) Notwithstanding any other law to the contrary, any license held by a member of the armed forces, National Guard, or a reserve component that expires, is forfeited, or deemed delinquent while the member is on active duty and deployed during a state or national crisis shall be restored under the restoration requirements provided in this section.

~~For the purposes of this section, "state or national crisis" includes but is not limited to:~~

~~(1)~~ ~~A situation requiring the proper defense of nation or State;~~

~~(2)~~ ~~A federal or state disaster or emergency;~~

~~(3)~~ ~~A terrorist threat; or~~

~~(4)~~ ~~A homeland security or homeland defense event or action.~~

~~(b) The licensing authority shall restore a license upon the payment of the current renewal fee if the member:~~

~~(1)~~ ~~Requests a restoration of the license within one hundred twenty days after being discharged or released from active duty deployment;~~

~~(2)~~ ~~Provides the licensing authority with a copy of the member's order calling the member to active duty deployment and the member's discharge or release orders; and~~

~~(3)~~ ~~If required for renewal, provides documentation to establish the financial integrity of the licensee or to satisfy a federal requirement.~~

~~(c) This section:~~

~~(1)~~ Shall not apply to a member who is on scheduled annual or specialized training, or to any person whose license is suspended or revoked, or who otherwise has been adjudicated and is subject to disciplinary action on a license; and

~~(2)~~ ~~Shall also apply to a member whose license is current, but will expire within one hundred twenty days of the member's discharge or release from active duty deployment.~~"]

SECTION 78. Section 436B-14.6, Hawaii Revised Statutes, is repealed.

["[~~§436B-14.6] Licensure by endorsement or licensure by reciprocity; experience requirements.~~ (a) Unless otherwise provided by law, an applicant for licensure by endorsement or licensure by reciprocity who is a nonresident military spouse may demonstrate competency in a specific profession or vocation as determined by the licensing authority in lieu of a requirement that the applicant has worked or practiced in that profession or vocation for a specified period of time prior to the application for licensure by endorsement or licensure by reciprocity.

(b) The licensing authority shall expedite consideration of the application and issuance of a license by endorsement or license by reciprocity to a nonresident military spouse who meets the requirements of this section."]

SECTION 79. Section 436B-14.7, Hawaii Revised Statutes, is repealed.

["~~§436B-14.7 Licensure by endorsement or licensure by reciprocity; initial acceptance by affidavit; temporary license; military spouse.~~ ~~(a) Notwithstanding any other law to the contrary, a person who is married to an active duty member of the armed forces of the United States shall be approved for temporary licensure if the person:~~

~~(1)~~ ~~Is accompanying the member on an official permanent change of station to a military installation located in this State;~~

~~(2)~~ ~~Either holds a license in another jurisdiction of the United States:~~

~~(A)~~ As an acupuncturist, behavior analyst, dentist, dispensing optician, hearing aid dealer and fitter, marriage and family therapist, mental health counselor, certified nurse aide, licensed practical nurse, registered nurse, nursing home administrator, occupational therapist, optometrist, pharmacist, naturopathic physician, osteopathic physician, physician, physician assistant, podiatrist, psychologist, respiratory therapist, social worker, speech pathologist, audiologist, or veterinary technician; or

~~(B)~~ Is in a profession or vocation not included in subparagraph (A) for which the licensing authority of this State has determined that the licensure requirements of the other jurisdiction are equivalent to or exceed those of this State;

~~(3)~~ Has been licensed or certified by another jurisdiction of the United States for at least one year, and the license or certification is current, active, and in good standing without conditions or restrictions in all jurisdictions in which the person holds a license or certification;

~~(4)~~ Has met minimum education requirements and applicable work experience and clinical supervision requirements when licensed or certified by another jurisdiction, and the other jurisdiction verifies that the person met those requirements to become licensed or certified in that jurisdiction;

~~(5)~~ ~~Has passed the examination requirements for the license or certification, if required by the licensing authority of this State or another jurisdiction;~~

~~(6)~~ Has not had a license or certificate limited, suspended, or revoked and has not voluntarily surrendered a license or certificate in another jurisdiction while under investigation for licensing violations;

~~(7)~~ Has not had an application for licensure denied, been censured, or had discipline imposed by another licensing authority; provided that if another jurisdiction has taken disciplinary action against the person, the licensing authority of this State shall determine if all terms and conditions of the discipline, if any, are satisfied and the matter resolved; provided further that if the terms and conditions of discipline have not been satisfied in that jurisdiction, the licensing authority may deny or refuse to issue a license applied for under this section until the terms and conditions of discipline are satisfied;

~~(8)~~ Has not surrendered membership on any professional staff in any professional association, society, or faculty while under investigation or to avoid adverse action for acts or conduct that would constitute grounds for disciplinary action in this State;

~~(9)~~ ~~Pays all applicable fees;~~

~~(10)~~ ~~Does not have a disqualifying criminal history as determined by the licensing authority; and~~

~~(11)~~ Submits with the application a signed affidavit stating that the application information, including evidence of requisite education, exam, and experience; prior employment; and criminal history record check, is true and accurate; provided that, upon receiving the affidavit, if the licensing authority issues the license to the person, the licensing authority may revoke the license at any time if the information provided in the application is found to be false or if the person fails to maintain the conditions of initial licensure.

(b) A person who is licensed pursuant to this section shall be subject to the laws regulating the person's practice in this State and shall be subject to the jurisdiction of the licensing authority of this State.

(c) The licensing authority shall issue to the person a temporary license to allow the person to perform specified services, under the supervision of a professional licensed by this State if appropriate, while completing any requirements necessary for licensure in this State; provided that a temporary license shall only be issued in those professions where credentials, experience, or passage of a national exam is substantially equivalent to or exceed those established by the licensing authority of this State.

(d) The licensing authority shall expedite consideration of the application and issuance of a license by endorsement, license by reciprocity, or temporary license to a person who meets the requirements of this section.

(e) A license issued under subsection (a) shall be valid for the same period of time as a license issued pursuant to the requirements of title 25 for the particular profession; provided that the total time period that the person holds a license issued under subsection (a) shall not exceed five years in the aggregate or the period covered under the military member's orders of assignment in the State."]

SECTION 80. Section 476-26, Hawaii Revised Statutes, is repealed.

["~~§476-26 Removal; member of armed forces.~~ Notwithstanding the provisions of section 476-25, a member of the armed forces of the United States on active duty who is a buyer of a motor vehicle under a contract, without the consent of the seller, may remove the motor vehicle from the island in which the motor vehicle was first kept for use by the buyer after sale if the buyer was a member of the armed forces of the United States on active duty at the time of execution of the contract and if such buyer has been reassigned to a different county, state, or country by competent government orders, unless the seller and buyer execute an agreement, separate and apart from the contract in respect of which it applies, stating that the motor vehicle may not be removed or stating the terms and conditions under which it may be removed. Notwithstanding the provisions of section 286-57, a member of the armed forces of the United States under contract with an out-of-state dealer or financial institution identified as the lien holder of record on a vehicle registration or vehicle title may remove said vehicle from the State without the consent of the seller."]

SECTION 81. Section 481B-16, Hawaii Revised Statutes, is repealed.

["[~~§481B-16] Protection of military; lending practices.~~ (a) The director of commerce and consumer affairs may enforce title 10 United States Code section 987, (section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007, Public Law No. 109-364), and federal regulations promulgated thereunder, including but not limited to title 32 Code of Federal Regulations part 232.

(b) The director of commerce and consumer affairs may enter into an agreement with the United States Federal Trade Commission to allow the director to access the Military Sentinel Network maintained by the Federal Trade Commission for the purpose of enforcing subsection (a)."]

SECTION 82. Section 486N-7.5, Hawaii Revised Statutes, is repealed.

["[~~§486N-7.5]~~ Military personnel; federal active duty deployment outside State; cancellation or suspension of contract. (a) In addition to cancellation of a health club contract under sections 486N-6 and 486N-7, a health club contract of a member of the United States military, including a member of the Hawaii National Guard, United States military reserves, or regular United States armed forces who is serving on federal active duty or active duty in federal service and deployed or otherwise serving outside of this State during the term of the contract, may be canceled or suspended; provided that the request for cancellation or suspension:

~~(1)~~ ~~Is made by the member or the member's legally designated representative;~~

~~(2)~~ ~~Includes a copy of the member's official military orders or a written verification from the member's commanding officer; and~~

~~(3)~~ ~~Is made within ninety days after the member receives notice of serving on federal active duty or active duty in federal service and deployment or service outside of this State.~~

(b) If a contract is suspended under this section, the health club shall not charge any fees to reinstate the contract and shall maintain the original payment obligations set forth in the contract. A contract that is suspended pursuant to this section shall be subject to cancellation two years from the date of suspension if the buyer fails to reinstate the contract.

(c) If a contract is canceled under this section, the health club may retain the portion of the total contract price representing the services used plus reimbursement for the expenses incurred in an amount not to exceed twenty-five per cent of the total contract price."]

SECTION 83. Section 521-83, Hawaii Revised Statutes, is repealed.

["[~~§521-83] Early termination of tenancy; servicemember tenants.~~ (a) A servicemember tenant may terminate a rental agreement of a term of one year or less without penalty or fees for early termination or liability for future rent if the servicemember tenant receives military orders requiring the servicemember tenant to vacate civilian housing and move into on-post government quarters; provided that:

~~(1)~~ ~~Failure to move into on-post government quarters will result in a forfeiture of the servicemember tenant's basic allowance for housing;~~

~~(2)~~ ~~The servicemember tenant requests permission from their commanding officer to maintain their housing allowance and their request is denied; and~~

~~(3)~~ ~~The servicemember tenant submits at least thirty days written notice to the landlord.~~

(b) When the tenancy is from month to month, a servicemember tenant may terminate a rental agreement without penalty or fees for early termination or liability for future rent if the servicemember tenant receives military orders requiring the servicemember tenant to vacate civilian housing and move into on-post government quarters; provided that failure to move into on-post government quarters will result in a forfeiture of the servicemember tenant's basic allowance for housing; provided further that the servicemember tenant submits at least fifteen days written notice to the landlord.

~~(c) The written notice required under subsection (a) or (b) shall be accompanied by the following documents:~~

~~(1)~~ ~~Either:~~

~~(A)~~ ~~A copy of official military orders; or~~

~~(B)~~ ~~A written verification signed by the servicemember tenant's commanding officer; and~~

~~(2)~~ ~~Written proof from the servicemember tenant's commanding officer that the servicemember tenant's request to maintain their housing allowance was denied.~~

(d) In the event a servicemember tenant dies during active duty, an adult member of the servicemember tenant's family may terminate a rental agreement of a term of one year or less, or a rental agreement with a month to month tenancy, without penalty or fees for early termination or liability for future rent if the family member provides at least fifteen days written notice to the landlord. The notice shall be accompanied by a copy of the servicemember tenant's death certificate and:

~~(1)~~ ~~A copy of official military orders showing the servicemember tenant was on active duty; or~~

~~(2)~~ ~~A written verification signed by the servicemember tenant's commanding officer.~~

(e) If the servicemember tenant is solely liable on the rental agreement, the rental agreement shall terminate on the early termination date described in subsection (a), (b), or (d), and the servicemember tenant or servicemember tenant's estate or family member, as applicable, shall be liable for rent owed through the early termination date plus any previous obligations outstanding as of that date. The amount due from the servicemember tenant shall be paid to the landlord on or before the early termination date.

(f) If there are multiple tenants who are parties to the rental agreement, the release of one or more servicemember tenants under this section shall not terminate the rental agreement with respect to the other non-terminating tenants; provided that the other non-terminating tenants demonstrate an ability to pay the rent under the rental agreement, as determined by the landlord. If the other non-terminating tenants fail to demonstrate an ability to pay the rent, the landlord may terminate the rental agreement by giving notice of early termination to the other non-terminating tenants at least thirty days before the early termination date specified in the notice; provided that the landlord shall not assess any penalty or fees for the early termination. The amount due from the other non-terminating tenants shall be paid to the landlord on or before the early termination date.

~~The landlord shall not be required to refund security deposits under section 521-44 or prepaid rent until:~~

~~(1)~~ ~~The rental agreement terminates with respect to all tenants and the dwelling unit is surrendered to the landlord; or~~

~~(2)~~ Early termination is effected pursuant to this section, in which case each terminating tenant shall receive a prorated share of any security deposit or prepaid rent from the landlord upon termination of the rental agreement; provided that the percentage of any security deposit to be returned shall be determined by the parties in writing; provided further that if there is no determination made by the parties regarding the percentage share of the security deposit, the landlord shall be permitted to refund the security deposit in equal shares to each tenant on the rental agreement.

~~(g) If a servicemember tenant or an adult member of the servicemember tenant's family submits notice of early termination in compliance with this section, the landlord shall:~~

~~(1)~~ Return a prorated share of all security deposits recoverable by the terminating servicemember tenant or the terminating servicemember tenant's family member under section 521-44 and prepaid rent recoverable by the terminating servicemember tenant or the terminating servicemember tenant's family member following the servicemember tenant's or family member's surrender of the dwelling unit, except as otherwise provided in subsection (f); provided that the landlord may withhold a prorated amount of the security deposit for payment of damages that the landlord has suffered by reason of the terminating servicemember tenant's noncompliance with section 521-51; and

~~(2)~~ ~~Not assess any fee or penalty against the terminating servicemember tenant or the terminating servicemember tenant's family member for exercising any right granted under this section.~~

(h) This section shall not affect a servicemember tenant's liability for delinquent, unpaid rent, or other amounts owed to the landlord before the rental agreement was terminated by the servicemember tenant or servicemember tenant's family member under this section.

(i) Nothing in this section shall be construed to infringe upon or affect in any way the rights a servicemember tenant may have under the federal Servicemembers Civil Relief Act, P.L. 108-189, or chapter 657D.

~~(j) This section shall not apply if the military orders are a result of disciplinary action or court order.~~

(k) For the purposes of this section, "servicemember tenant" means an active duty member of the regular or reserve component of the United States armed forces, the United States Coast Guard, or the Hawaii national guard, who is on ordered federal duty for a period of ninety days or more and who is a party to a rental agreement under this chapter."]

SECTION 84. Section 605-13, Hawaii Revised Statutes, is repealed.

["~~§605-13 District courts, cases involving military vehicles.~~ Any legal officer of the United States military forces, to the extent that the officer is authorized or required by the officer's respective branch of service, may without license represent military personnel in the district courts in any case which arises out of the driving of a military vehicle."]

SECTION 85. Section 702-232, Hawaii Revised Statutes, is repealed.

["~~§702-232 Military orders.~~ It is an affirmative defense to a penal charge that the defendant, in engaging in the conduct or causing the result alleged, which the defendant did not know to be unlawful, did no more than execute an order of the defendant's superior in the armed services."]

PART IV

SECTION 86. In the event that the government of the United States or any agency or entity of the United States government commences condemnation proceedings of any land or interest in land owned or held by the State, the governor shall issue a written public notice announcing the commencement of the condemnation proceedings, and the provisions of the Hawaii Revised Statutes identified in part II and part III of this Act shall be amended or repealed, as applicable, as of the date of the commencement of condemnation proceedings announced by the governor.

SECTION 87. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 88. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 89. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 90. This Act shall take effect upon its approval; provided that part II and part III of this Act shall not take effect until the date of the commencement of condemnation proceedings announced by the governor pursuant to section 86 of this Act.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2527
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII