REPORT TITLE:
Professions and Vocations


DESCRIPTION:
Repeals the motor vehicle repair industry board and the motor
vehicle industry licensing board, and provides for the continued
regulation of those areas by the department of commerce and
consumer affairs.  (HB1097, HD1)

 
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                                                        1097
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO REPEAL OF PROFESSIONAL AND VOCATIONAL LICENSING
   BOARDS.



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

 1      SECTION 1.  The purpose of this Act is to make government
 
 2 more efficient by abolishing the motor vehicle repair industry
 
 3 board and the motor vehicle industry licensing board, and by
 
 4 providing for the continued regulation and oversight of those
 
 5 areas by the department of commerce and consumer affairs.
 
 6      SECTION 2.  Section 26-9, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (c) to read as follows:
 
 8      "(c)  The board of acupuncture, board of public accountancy,
 
 9 board of barbering and cosmetology, boxing commission, board of
 
10 chiropractic examiners, contractors license board, board of
 
11 dental examiners, board of electricians and plumbers, elevator
 
12 mechanics licensing board, board of professional engineers,
 
13 architects, surveyors, and landscape architects, board of massage
 
14 therapy, board of medical examiners, [motor vehicle industry
 
15 licensing board, motor vehicle repair industry board,] board of
 
16 examiners in naturopathy, board of nursing, board of examiners in
 
17 optometry, board of osteopathic examiners, pest control board,
 
18 board of pharmacy, board of physical therapy, board of
 
19 psychology, board of private detectives and guards, real estate
 

 
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 1 commission, board of veterinary examiners, board of speech
 
 2 pathology and audiology, and any board, commission, program, or
 
 3 entity created pursuant to or specified by statute in furtherance
 
 4 of the purpose of this section including but not limited to
 
 5 section 26H-4, or chapters 484, 514A, and 514E shall be placed
 
 6 within the department of commerce and consumer affairs for
 
 7 administrative purposes."
 
 8      SECTION 3.  Section 431:10C-305, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (c) to read as follows:
 
10      "(c) (1)  If a temporary substitute vehicle is made
 
11           available to a customer by an auto repair shop
 
12           registered with the [motor vehicle repair industry
 
13           board] department of commerce and consumer affairs or a
 
14           motor vehicle dealer licensed by the [motor vehicle
 
15           industry licensing board,] department of commerce and
 
16           consumer affairs, while the shop or dealer repairs or
 
17           services the customer's insured motor vehicle, the
 
18           motor vehicle insurance policy of the customer's
 
19           insured motor vehicle shall be primary over the policy
 
20           on the temporary substitute vehicle; and
 
21      (2)  In the event that a customer's insured motor vehicle is
 
22           operated by a registered repair shop in the course of
 
23           service or repair, or to verify repairs, the motor
 

 
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 1           vehicle insurance policy of the registered repair shop
 
 2           shall be primary over the policy on the customer's
 
 3           insured motor vehicle."
 
 4      SECTION 4.  Section 437-1.1, Hawaii Revised Statutes, is
 
 5 amended as follows:
 
 6      1.  By adding two new definitions to be appropriately
 
 7 inserted and to read as follows:
 
 8      ""Department" means the department of commerce and consumer
 
 9 affairs.
 
10      "Director" means the director of commerce and consumer
 
11 affairs."
 
12      2.  By deleting the definition of "board".
 
13      [""Board" means the motor vehicle industry licensing board
 
14 created by this chapter."]
 
15      SECTION 5.  Section 437-5, Hawaii Revised Statutes, is
 
16 repealed.
 
17      ["§437-5  Board.  A motor vehicle industry licensing board
 
18 is created and shall consist of seven members.  Three of the
 
19 members shall be engaged in the motor vehicle industry and four
 
20 of the members shall be private citizens not connected with the
 
21 industry."]
 
22      SECTION 6.  Section 437-6, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§437-6  Powers and duties of the [board.] director.  In
 
 2 addition to any other powers and duties authorized by law, the
 
 3 [board] director shall:
 
 4      (1)  Adopt, amend, and repeal from time to time rules not
 
 5           inconsistent with this chapter, as the [board] director
 
 6           deems appropriate for the carrying out of the
 
 7           provisions and purposes of this chapter and for the
 
 8           efficient administration thereof, and the proper
 
 9           conduct of the business that is subject to this
 
10           chapter, including every matter or thing required to be
 
11           done or which may be done with the approval or consent
 
12           or by order or under the direction or supervision of,
 
13           or as prescribed by the [board,] director, which rules,
 
14           when adopted under chapter 91, shall have the effect of
 
15           law;
 
16      (2)  Grant, deny, suspend, or revoke licenses that are
 
17           authorized by this chapter, fine licensees, and impose
 
18           conditions as may be set forth in the rules of the
 
19           [board] department in connection with the granting of
 
20           licenses;
 
21      (3)  Prescribe the nature of the proof to be furnished, the
 
22           notices to be given, and the conditions to be met or
 
23           observed for the issuance of a duplicate license in
 

 
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 1           place of one alleged to have been lost or destroyed,
 
 2           including a requirement for any indemnity deemed
 
 3           appropriate to the case;
 
 4      (4)  Prescribe all forms to be used for the purposes of this
 
 5           chapter not otherwise provided for;
 
 6      (5)  Establish, by rules, minimum qualifications for
 
 7           salespersons or dealers which must be met by applicants
 
 8           prior to the issuance of any license; and
 
 9      (6)  The exercise by the [board] director of power,
 
10           authority, and discretion in it so vested shall be
 
11           final in each case and shall not be reviewable by or
 
12           appealable to any court or tribunal, except as
 
13           otherwise provided in chapter 91 or in this chapter."
 
14      SECTION 7.  Section 437-7, Hawaii Revised Statutes, is
 
15 amended as follows:
 
16      1.  By amending subsection (b) to read:
 
17      "(b)  A person applying for a salesperson's license under
 
18 this section shall be granted a temporary license by the
 
19 executive officer on behalf of the [board;] director; provided no
 
20 patent disqualification of the applicant is disclosed or no valid
 
21 objection to the granting of the temporary license is apparent
 
22 and if all requirements relative to the filing of the application
 
23 appear to have been met and the dealer files a statement that
 

 
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 1 this person is employed by and under the supervision of the
 
 2 dealer.  A fee shall be charged for the issuance of the temporary
 
 3 license, as provided in rules adopted by the director of commerce
 
 4 and consumer affairs pursuant to chapter 91, and the license
 
 5 shall remain in effect until the [board] director approves or
 
 6 denies the application for a permanent license."
 
 7      2.  By amending subsection (l) to read:
 
 8      "(l)  The executive officer on behalf of the director may
 
 9 grant [preliminary] approval of a dealer or auction license
 
10 application if all licensing requirements have been met.  [The
 
11 board shall ratify all preliminary approvals.]"
 
12      SECTION 8.  Section 437-25, Hawaii Revised Statutes, is
 
13 amended by amending subsection (b) to read as follows:
 
14      "(b)  The executive officer on behalf of the [board]
 
15 director is authorized to issue the amended license of a
 
16 salesperson [subject to the ratification by the board for the
 
17 first three amendments to a license during the original term
 
18 thereof.  The board shall issue the fourth and following
 
19 amendments to such license during the term of the original
 
20 license.  The executive officer may issue an amended license for]
 
21 and new or amended premises or for additional branch locations of
 
22 the business under a license [subject to the board's
 
23 ratification]; provided that the executive officer may not issue
 

 
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 1 an amended license when a prior amendment to the same license has
 
 2 not been acted upon by the [board.] director.  Unless good cause
 
 3 exists, the amended license shall be freely issued for the
 
 4 remainder of the original term."
 
 5      SECTION 9.  Section 437B-1, Hawaii Revised Statutes, is
 
 6 amended as follows:
 
 7      1.  By adding the following definition to be appropriately
 
 8 inserted and to read as follows:
 
 9      ""Director" means the director of commerce and consumer
 
10 affairs."
 
11      2.  By deleting the definition of "board".
 
12      [""Board" means the motor vehicle repair industry board."]
 
13      SECTION 10.  Section 437B-3, Hawaii Revised Statutes, is
 
14 repealed.
 
15      ["§437B-3 Motor vehicle repair industry board.  There shall
 
16 be a motor vehicle repair industry board consisting of seven
 
17 members.  Three members of the board shall be persons connected
 
18 with the motor vehicle repair industry and at least two of those
 
19 members shall be motor vehicle mechanics licensed under this
 
20 chapter.  The remaining four members shall not be connected with
 
21 the motor vehicle repair industry."]
 
22      SECTION 11.  Sections 437-1.1 (definition of "dealer");
 
23 437-2(b); 437-4(d); 437-7(a), (c), (d), (h), (i), and (j);
 

 
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 1 437-11(a); 437-13; 437-16; 437-18(a), (c), and (d); 437-21.1;
 
 2 437-23(b); 437-24(c) and (d); 437-25(a); 437-27; 437-27.5;
 
 3 437-28; 437-29; 437-36; 437-39; and 437-40, Hawaii Revised
 
 4 Statutes, are amended by substituting the word "director"
 
 5 wherever the word "board" or the words "motor vehicle industry
 
 6 licensing board" appear, as the context requires.
 
 7      SECTION 12.  Sections 437-15, 437-35, and 437-35.5, Hawaii
 
 8 Revised Statutes, are amended by substituting the word
 
 9 "department" wherever the word "board" appears, as the context
 
10 requires.
 
11      SECTION 13.  Sections 437B-1 (definition of "repair of motor
 
12 vehicles"); 437B-4; 437B-7.5; 437B-8; 437B-9(c); 437B-12(a), (c),
 
13 and (d); 437B-14; 437B-15(a); 437B-16; 437B-17; 437B-19;
 
14 437B-23(a) and (c); and 437B-26, Hawaii Revised Statutes, are
 
15 amended by substituting the word "director" wherever the word
 
16 "board" appears, as the context requires.
 
17      SECTION 14.  All rules, guidelines, and other material
 
18 adopted or developed by a board abolished by this Act shall
 
19 remain in full force and effect until amended or repealed by the
 
20 director of commerce and consumer affairs.
 
21      In the interim, every reference to an abolished board in
 
22 those rules, guidelines, and other material is amended to refer
 
23 to the director of commerce and consumer affairs.
 

 
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 1      SECTION 15.  This Act does not affect rights and duties that
 
 2 matured, penalties that were incurred, and proceedings that were
 
 3 begun, before its effective date.
 
 4      SECTION 16.  All Acts passed during this regular session of
 
 5 1999, whether enacted before or after the passage of this Act,
 
 6 shall be amended to conform to this Act, unless such acts
 
 7 specifically provide otherwise.
 
 8      SECTION 17.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 18.  This Act shall take effect upon its approval.
 

 
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