STAND. COM. REP. NO.  143

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 723

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred H.B. No. 723 entitled:

"A BILL FOR AN ACT RELATING TO ACTIVITY DESKS,"

begs leave to report as follows:

The purpose of this measure is to update regulatory requirements for activity desks by:

(1)  Requiring activity desks to designate fiduciaries in case of certain business closures and to submit monthly client trust account reports to the Department of Commerce and Consumer Affairs; and

(2)  Exempting from regulation activity desks that operate without accepting consumer moneys for third-party services.  

The Activities & Attractions Association of Hawaii supported this measure.  The Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs opposed this measure.  The Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs offered comments.  

     Your Committee notes that the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs testified that the activity desk regulatory exemption is ambiguous and does not clearly identify conduct that is exempt from regulation under Chapter 468M, Hawaii Revised Statutes.  Your Committee also notes that the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs testified that it had concerns regarding fiduciary and reporting requirements as well as the types of services that would warrant an exemption.  Although your Committee acknowledges these concerns, your Committee recommends that this measure proceed through the legislative process to facilitate further discussion.

     Your Committee has amended this measure by changing its effective date to July 1, 2020, to promote further discussion.

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 723, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 723, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Tourism,

____________________________

TOM BROWER, Chair