SB2907

SECTION 1. Chapter 397, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§397- Third-party determinations and review. (a) The director shall issue determinations on applications for third-party inspector certificates of competency and certifications of third-party elevator inspection companies. The determinations shall be sent by electronic service or certified mail and shall be final and conclusive, unless a written appeal is filed, clearly stating what items are being contested. The appeal must be addressed to the director and received or, if mailed, postmarked by no later than the twentieth calendar day following receipt of the determination, or, if received by electronic service, no later than the twentieth day after receipt of the determination.

(b) The director or the director's designee may hold a formal hearing, which shall result in a decision by the director. Any party who disagrees with the director's decision may appeal in writing to the director within twenty calendar days of receipt of the decision. The director shall promptly notify the appeals board of the notice of contest. Where a prior formal hearing is held at the department level, the appeals board shall conduct a case review using only the record.

(c) Except where a decision has already become final for failure to contest, the decision of the appeals board shall be final and conclusive unless the director or any party to the proceedings before the appeals board obtains a review thereof in the manner provided in chapter 91 by instituting proceedings in the circuit court. The hearing on review shall be on the record and the department shall be deemed a party to any such proceedings."

SECTION 2. Section 397-3, Hawaii Revised Statutes, is amended by adding new definitions to be appropriately inserted and to read as follows:

""Amusement ride" means a mechanically or electrically operated device designed to carry passengers in various modes and used for entertainment and amusement.

"Certified third-party elevator inspection company" means any person, firm, or corporation that is registered with the department of commerce and consumer affairs pursuant to chapter 444 and is certified by the department.

"Chief boiler inspector" means the person appointed and delegated by the director to administer the state boiler and pressure vessel inspection program and implement and enforce the requirements of this chapter and rules promulgated thereunder, and shall take all action necessary to enforce the laws and rules pertaining to the inspection of pressure retaining items.

"Pressure retaining item" means boiler, pressure

vessel, or pressure system.

"Third-party inspector" means:

(1) Any person, as defined as in the American Society of Mechanical Engineers Qualification for Elevator Inspectors as an inspector who possesses an elevator inspector's certificate of competency issued by the department; and

(2) Has satisfied requirements established by the department."

SECTION 3. Section 397-4, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Inspection and investigation.

(1) Authorized representatives of the director shall have the right to enter without delay during regular working hours and at other reasonable times any place, establishment, or premises in which are located boilers, pressure systems, amusement rides, or elevators and kindred equipment requiring inspection pursuant to this chapter;

(2) The department shall inspect for the purpose of ensuring compliance with the purposes and provisions of this chapter any activity related to the erection, construction, alteration, demolition, or maintenance of buildings, structures, bridges, highways, roadways, dams, tunnels, sewers, underground buildings or structures, underground pipelines or ducts, and other construction projects or facilities;

(3) The department shall review plans and make inspections, and investigations of boilers and pressure systems, and the premises appurtenant to each at times and at intervals determined by the director for the purpose of ensuring compliance with the purposes and provisions of this chapter. This paragraph shall not apply to single family dwellings or multiple dwelling units of less than six living units;

(4) The department shall review plans and make inspections, and investigations of elevators and kindred equipment and the premises appurtenant to each at times and at intervals determined by the director for the purpose of ensuring compliance with the purposes and provisions of this chapter. This paragraph shall not apply to single family dwellings;

(5) The department shall inspect, at least semi-annually, all mechanically or electrically operated devices considered as major rides and used as amusement rides at a carnival, circus, fair, or amusement park for the purpose of protecting the safety of the public. This paragraph shall not apply to any coin operated ride or mechanically or electrically operated devices considered or known in the amusement trade as kiddie rides;

(6) The department may investigate accidents involving boilers, pressure systems, amusement rides, and elevators and kindred equipment inspected under this chapter and may issue orders and recommendations with respect to the elimination and control of the cause factors;

(7) The department shall have the right to question any employer, owner, operator, agent, or employee in investigation, enforcement, and inspection activities covered by this chapter; [~~and~~]

(8) Any employee of the State acting within the scope of the employee's office, employment, or authority under this chapter shall not be liable in or made a party to any civil action arising out of the administration and enforcement of this chapter[.];

(9) The department shall establish an application procedure and all requirements for certification of third-party elevator inspection companies. At a minimum, the individual qualifying on behalf of a corporation, the owner on behalf of a sole ownership, or the partners on behalf of a partnership, shall meet the following requirements:

(A) Five years' work experience at a journey person level in the construction, installation, alteration, testing, maintenance, and service and repair of elevators, kindred equipment, and amusement rides covered by this chapter. This experience shall be verified by current and previously licensed elevator contractors or by third-party elevator inspection companies; and

(B) Satisfactory completion of a written examination administered by the department on the most recent applicable codes and rules;

(10) The department shall conduct quality control monitoring of inspections conducted by third-party inspectors and certified third-party elevator inspection companies;

(11) Companies with certified third-party elevator inspectors shall submit to the department insurance policies, or certified copies thereof, issued by an insurer licensed to conduct business in the State, to provide professional liability coverage of at least $1,000,000, and general casualty coverage of at least $1,000,000 for injury or death of any number of persons in one occurrence, with the coverage of at least $500,000 for property damage in any one occurrence, and proof of valid compliance with chapters 383, 386, 392, and 393; and

(12) Whenever any owner, user, contractor, or vendor fails to pay any fees required under this chapter and rules within sixty days after notification, the director shall suspend or revoke the operating permit and shall require the owner, user, contractor, or vendor to ensure the pressure retaining item, elevator and kindred equipment, or amusement ride not be used."

SECTION 4. Section 397-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The director may prescribe reasonable fees to be charged for inspection, examination, other services rendered and for permits, certificates, or licenses, the issuance of which are required by this chapter or by any rules of the department adopted pursuant to this chapter, and for:

(1) Inspections by the department of any boiler, pressure system, amusement ride, and elevator and kindred equipment for which a permit or certificate is required for its installation, operation, or use, and which is required to be inspected by this chapter or by any rules of the department; [~~and~~]

(2) Examination of any person applying for permits, certificates, or licenses as required by this chapter or by any rules of the department[.]; and

(3) The department shall charge $200 for a third-party inspector certificates of competency, and $500 for certification of a third-party elevator inspection company, both of which shall be valid for two years, provided that the director may adopt rules pursuant to chapter 91 to amend the fees specified in this subsection."

SECTION 5. Section 397-6, Hawaii Revised Statutes, is amended to read as follows:

"§397-6 Safety inspection by qualified inspectors. (a) All safety inspections required under this chapter of boilers and pressure systems shall be performed by deputy boiler inspectors in the employ of the department who are qualified boiler inspectors and, when authorized by the director, may be performed by special inspectors who are qualified boiler inspectors in the employ of insurance companies insuring boilers or pressure systems in this State.

(b) A qualified boiler inspector is a person eligible for or in possession of a valid commission issued by the National Board of Boiler and Pressure Vessel Inspectors, who has satisfied the requirements established by the department, and who has received from the director or the director's authorized agent briefings and instructions regarding the rules pertaining to boilers and pressure systems in this State.

(c) The director shall appoint a chief boiler inspector who shall have had at the time of appointment not less than ten years practical experience in the construction, maintenance, repair, or operation of boilers and pressure vessels as a mechanical engineer, steam engineer, boilermaker, or boiler inspector.

[~~(c)~~] (d) All safety inspections required under this chapter of elevators and kindred equipment, and amusement rides and the premises appurtenant thereto, shall be performed by deputy elevator inspectors of the department who are qualified elevator inspectors and who are employed primarily for purposes of elevator and related inspection work[.], and when authorized by the director and this chapter, may be performed by third-party inspectors. Only deputy elevator inspectors of the department shall conduct the following:

(1) Final acceptance inspection of all new elevators and kindred equipment prior to issuance of the initial permit to operate;

(2) Final acceptance inspections of the modernization or alteration of elevators and kindred equipment;

(3) Investigation of accidents and complaints;

(4) Follow-up inspections to confirm corrective action; and

(5) Inspections of elevators and kindred equipment owned by the State or any political subdivision thereof.

[~~(d)~~] (e) A qualified elevator inspector is a person who meets the criteria of the American Society of Mechanical Engineers and the standards for the qualification of elevator inspectors of the American National Standards Institute and has satisfied requirements established by the department.

(f) When authorized by the director, third-party inspectors employed by certified third-party elevator inspection companies may conduct inspections and witness tests of elevators and kindred equipment, and amusement rides and the premises appurtenant thereto, subject to the limitations of subsection (d). Third-party inspectors shall have the right to question any employer, owner, operator, agent, or employee in inspection and periodic tests activities covered by this chapter. Third-party inspectors shall not be employed as elevator and kindred equipment consultants, or by contractors who are required to obtain elevator permits, owners of amusement rides, licensed elevator contractors, or be the same person that has performed or assisted in the performance of construction, installation, maintenance, relocation, alteration, repair, or management of an elevator, kindred equipment, or amusement ride.

(g) The department shall determine the qualifications of any applicant for a third-party inspector certificate of competency, either by examination or by other satisfactory proof of qualifications. The department may rescind at any time, upon good cause being shown therefor, and after hearing, if requested, any certificate of competency issued by it to a third-party inspector.

(h) The department shall require third-party inspectors to file a written report of each inspection or test with the department and owner within fifteen business days after the inspection or test. A third-party inspector who fails to file a written report of an inspection or test within fifteen business days after the date that the inspection or test was completed shall pay a late filing fee of $50 to the department, provided that the director may adopt rules pursuant to chapter 91 to amend the fee in this subsection. The department shall reject a written report of an inspection or test if it is submitted more than thirty business days after the completion of the inspection or test. The results of an inspection or test rejected pursuant to this subsection shall be deemed invalid and the inspection or test must be performed again. Failure to comply with this section shall be grounds to cancel a certificate of competency of a third-party inspector or certification of a third-party elevator inspection company."

SECTION 6. The director shall submit a report to the legislature on the status of third-party inspections of elevators and kindred equipment and amusement rides, including program results, not less than twenty days prior to the convening of each regular session.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act, upon its approval, shall take effect on July 1, 2020, and shall be repealed on June 30, 2025.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	2907
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII