HB1125 HD2

HOUSE OF REPRESENTATIVES	H.B. NO.	1125
THIRTIETH LEGISLATURE, 2019		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS.

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

PART I. GENERAL PROVISIONS

SECTION 1. The purpose of part I and part II of this Act is to establish the operating budget for the fiscal biennium beginning July 1, 2019, and ending June 30, 2021, for state executive branch programs under the purview of the house of representatives standing committee on intrastate commerce. SECTION 2. DEFINITIONS. Unless otherwise clear from the context, as used in part I and part II of this Act: "Expending agency" means the executive department, independent commission, bureau, office, board, or other establishment of the state government (other than the legislature, office of Hawaiian affairs, and judiciary), the political subdivisions of the State, or any quasi public institution supported in whole or in part by state funds, which is authorized to expend specified appropriations made by this Act.

Abbreviations, where used to denote the expending agency or a house of representatives standing committee, shall mean the following:

CCA Department of commerce and consumer affairs

IAC House of representatives standing committee on intrastate commerce

"Means of financing" or "MOF" means the source from which funds are appropriated or authorized to be expended for the programs and projects specified in this Act. All appropriations are followed by letter symbols. The letter symbols, where used, shall have the following meanings:

B Special funds

T Trust funds

"Position ceiling" means the maximum number of permanent and temporary full-time equivalent positions authorized for a particular program during a specified period or periods, as denoted by an asterisk for permanent full-time equivalent positions and a pound sign for temporary full-time equivalent positions.

"Program ID" means the unique identifier for the specific program and consists of the abbreviation for the organization responsible for carrying out the program followed by the organization number for the program.

PART II. PROGRAM APPROPRIATIONS

SECTION 3. APPROPRIATIONS. The following sums, or so much thereof as may be sufficient to accomplish the purposes and programs designated herein, are hereby appropriated or authorized, as the case may be, from the means of financing specified to the expending agency designated for the fiscal biennium beginning July 1, 2019, and ending June 30, 2021. The total expenditures and the number of positions in each fiscal year of the biennium shall not exceed the sums and the number indicated for each fiscal year, except as provided elsewhere in this Act, or as provided by general law.

PART III. STATUTORY AMENDMENTS

SECTION 4. Section 241-7, Hawaii Revised Statutes, is amended to read as follows:

"§241-7 Disposition of funds. All taxes collected under this chapter shall be state realizations[; provided that, by June 30 of each fiscal year, the sum of $2,000,000 shall be deposited with the director of finance to the credit of the compliance resolution fund as established pursuant to section 26-9(o)]."

SECTION 5. Section 412:2-105, Hawaii Revised Statutes, is amended to read as follows:

"§412:2-105 Fees[.]; expenses; assessments. (a) The commissioner shall charge any financial institution examined by the commissioner or the commissioner's staff, an amount for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination.

(b) The commissioner shall bill the affected financial institution for expenses as soon as feasible after the close of the examination. The affected financial institution shall pay the division within thirty days following the billing. All such payments shall be deposited to the compliance resolution fund established pursuant to section 26-9(o). All disputes relating to these billings between the affected financial institution and the commissioner shall be resolved in accordance with the procedures for contested cases under chapter 91.

(c) A Hawaii financial institution that fails to make a payment required by this section shall be subject to an administrative fine of not more than $250 per day for each day it is in violation of this section, which fine, together with the amount due under this section, may be recovered pursuant to section 412:2-611, and shall be deposited into the compliance resolution fund established pursuant to section 26-9(o).

(d) The amount or amounts to be assessed for fees and expenses regulated under this chapter shall be determined and assessed as provided below:

(1) The total amount or amounts to be assessed of financial institutions regulated under this chapter shall be calculated based on the division's proposed fiscal year budget, less funds credited to the division in the compliance resolution fund on June 30 of the fiscal year immediately preceding the fiscal year of the proposed budget and less the division's anticipated revenues;

(2) The assessments shall bear a reasonable relationship to the costs of regulating the financial institutions, including any administrative costs of the division; and

(3) The sum total of all assessments made and collected shall not exceed any related funding ceiling established by the legislature; provided that the total assessments for all financial institutions in any one fiscal year shall not exceed $ ."

SECTION 6. Section 454F-41, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) When the mortgage loan recovery fund attains a funding level of $750,000, the commissioner [~~may~~] shall either make a finding to adjust the fees generated by renewals or [~~may~~] determine that payments made by renewing licensees shall cease[.]; provided that payments shall remain ceased until the funding level falls below $750,000. If the funding level falls below $250,000 after the first five years of the establishment of the fund, the commissioner may adjust the fees to a reasonable level for the purpose of attaining a funding level of $750,000."

PART IV. GENERAL PROVISIONS

SECTION 7. If any portion of this Act or its application to any person, entity, or circumstance is held to be invalid for any reason, then the legislature declares that the remainder of the Act and each and every other provision thereof shall not be affected thereby. If any portion of a specific appropriation is held to be invalid for any reason, the remaining portion shall be expended to fulfill the objective of the appropriation to the extent possible.

SECTION 8. If manifest clerical, typographical, or other mechanical errors are found in part I or part II of this Act, the governor may correct the errors.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2030.

Report Title:

State Budget; DCCA; Division of Financial Institutions; Financial Services Regulation; CCA104; IAC

Description:

Appropriates funds for Fiscal Biennium 2019-21 for operations of the Department of Commerce and Consumer Affairs division under Program ID CCA104 - Financial Services Regulation. House Committee on Intrastate Commerce. Repeals the existing statutory requirement that $2,000,000 of certain taxes collected on bank and financial corporations be deposited to the credit of the compliance resolution fund. Requires adjustments to fees and assessments collected by the Division of Financial Institutions based on the amount of moneys credited to the division in the compliance resolution fund. Requires the Commissioner of Financial Institutions to adjust fees or cease collection of payments when the mortgage loan recovery fund attains a funding level of $750,000. (HB1125 HD2)

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