REPORT TITLE:
Compliance Resolution Fund


DESCRIPTION:
Combines certain special and revolving funds of the department of
commerce and consumer affairs into the department's compliance
resolution fund, to be managed at a department-wide level to fund
department operations.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1083
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
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:

 1      SECTION 1.  Section 26-9, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (i) to read as follows:
 
 3      "(i)  The functions and authority previously exercised by
 
 4 the treasurer (except funds custody, cash management, debt
 
 5 management, and administering of veterans loans transferred to
 
 6 the department of budget and finance) as constituted are
 
 7 transferred to the department of commerce and consumer affairs
 
 8 established by this chapter.  [The director of commerce and
 
 9 consumer affairs also shall be the commissioner of securities.]"
 
10      SECTION 2.  Section 26-9, Hawaii Revised Statutes, is
 
11 amended by amending subsection (l) to read as follows:
 
12      "(l)  Any law to the contrary notwithstanding, the director
 
13 of commerce and consumer affairs may:
 
14           (1)  Establish, increase, decrease, or repeal fees
 
15                relating to any aspect of the registration,
 
16                certification, licensure, or any other
 
17                administrative process for all laws within the
 
18                jurisdiction of the department.  [The fee assessed
 
19                shall bear a reasonable relationship between the
 

 
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 1                revenue derived from the fee and the cost or value
 
 2                of services rendered.]  Amendments to fee
 
 3                assessments shall be made pursuant to chapter 91;
 
 4           (2)  Assess fees for copies in any form of media of the
 
 5                computerized records of the business registration
 
 6                division or for electronic access to the
 
 7                computerized information on a one-time or on-going
 
 8                basis.  The fees charged for the copies or access
 
 9                may include billing service fees, network usage
 
10                fees, and computer consultant fees.  In adopting
 
11                these fees, the director shall take into account
 
12                the intent to make the division self-supporting.
 
13                To this end, the fees may reflect the commercial
 
14                value of the service or information provided.  In
 
15                the case of requests for records by a nonprofit
 
16                organization, the director may reduce or waive the
 
17                fees.  This paragraph shall control in any
 
18                instance where there is a conflict between this
 
19                paragraph and any other statute; and
 
20           (3)  Assess fees for copies of consumer and business
 
21                educational publications prepared or issued by the
 
22                department.  Fees collected under this paragraph
 
23                shall be deposited into the compliance resolution
 

 
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 1                fund under subsection (o).  [The fees assessed
 
 2                shall bear a reasonable relationship between the
 
 3                revenue derived from the fee and the cost of
 
 4                producing the materials issued.]  In the case of
 
 5                requests for copies by a nonprofit organization,
 
 6                the director may reduce or waive the fees.  For
 
 7                purposes of this paragraph, "consumer and business
 
 8                educational publications" does not include copies
 
 9                of statutes or administrative rules.
 
10      The fees collected by the professional and vocational
 
11 licensing division and the business registration division shall
 
12 be deposited into the compliance resolution fund under subsection
 
13 (o) [and shall be used to defray administrative costs, including
 
14 personnel costs associated with these two programs and costs
 
15 incurred by supporting offices and divisions].
 
16      The director may appoint program specialists, not subject to
 
17 chapters 76 and 77, to assist with the activities of the
 
18 professional and vocational licensing division."
 
19      SECTION 3.  Section 26-9, Hawaii Revised Statutes, is
 
20 amended by amending subsection (o) to read as follows:
 
21      "(o)  Every person licensed under any chapter within the
 
22 jurisdiction of the department of commerce and consumer affairs
 
23 and every person licensed subject to chapter 485 or registered
 

 
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 1 under chapter 467B shall pay upon issuance of a license, permit,
 
 2 certificate, or registration a fee and a subsequent annual fee to
 
 3 be determined by the director and adjusted from time to time to
 
 4 ensure that the proceeds, together with all other fines, income,
 
 5 and penalties collected under this section, do not surpass the
 
 6 annual operating costs of conducting compliance resolution
 
 7 activities required under this section.  The fees may be
 
 8 collected biennially or pursuant to rules adopted under chapter
 
 9 91, and shall be deposited into the special fund established
 
10 under this subsection.  Every filing pursuant to chapter 514E or
 
11 section 485-6(15) shall be assessed, upon initial filing and at
 
12 each renewal period in which a renewal is required, a fee that
 
13 shall be prescribed by rules adopted under chapter 91, and that
 
14 shall be deposited into the special fund established under this
 
15 subsection.  Any unpaid fee shall be paid by the licensed person,
 
16 upon application for renewal, restoration, reactivation, or
 
17 reinstatement of a license, and by the person responsible for the
 
18 renewal, restoration, reactivation, or reinstatement of a
 
19 license, upon the application for renewal, restoration, or
 
20 reinstatement of the license.  If the fees are not paid, the
 
21 director may deny renewal, restoration, reactivation, or
 
22 reinstatement of the license.  The director may establish,
 
23 increase, decrease, or repeal the fees when necessary pursuant to
 

 
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 1 rules adopted under chapter 91.
 
 2      There is created in the state treasury a special fund to be
 
 3 known as the compliance resolution fund to be expended by the
 
 4 director's designated representatives as provided by this
 
 5 subsection.  Notwithstanding any law to the contrary, [the moneys
 
 6 in the fund shall consist of annual fees collected under this
 
 7 subsection, section 514A-95, penalties or fines assessed as a
 
 8 result of action brought by department personnel, and penalties,
 
 9 fines, or reimbursement of costs or attorneys' fees assessed as a
 
10 result of actions brought for violations of chapters 480 and
 
11 487.] all revenues, fees, and fines collected by the department
 
12 shall be deposited into the compliance resolution fund.
 
13 Unencumbered balances existing on June 30, 1999 in the cable
 
14 television fund, the division of consumer advocacy fund, the
 
15 financial institution examiners' revolving fund, and the special
 
16 handling fund, shall be deposited into the compliance resolution
 
17 fund.  This provision shall not apply to the drivers education
 
18 fund underwriters fee, insurance premium taxes and revenues,
 
19 revenues of the workers' compensation special compensation fund,
 
20 the captive insurance administrative fund, the insurance
 
21 commissioner's education and training fund, the medical
 
22 malpractice patients' compensation fund, the insurance examiners'
 
23 revolving fund, the motor vehicle insurance administration
 

 
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 1 revolving fund, and fees collected for deposit in the office of
 
 2 consumer protection restitution fund, the real estate appraisers
 
 3 fund, the real estate recovery fund, the real estate education
 
 4 fund, the contractors recovery fund, the contractor's education
 
 5 fund, the condominium management education fund, and the public
 
 6 broadcasting revolving fund.  Any law to the contrary
 
 7 notwithstanding, the director may use the moneys in the fund to
 
 8 employ, without regard to chapters 76 and 77, hearings officers,
 
 9 investigators, attorneys, accountants, and other necessary
 
10 personnel to implement this subsection.  [In addition,] Any law
 
11 to the contrary notwithstanding, the moneys in the fund shall
 
12 [defray all other administrative costs, including personnel costs
 
13 of operating the regulated industries complaints office and costs
 
14 incurred by supporting offices and divisions.] be used to fund
 
15 the operations of the department with the exception of costs
 
16 related to the Hawaii public broadcasting authority.  The moneys
 
17 in the fund may be used to train personnel as the director deems
 
18 necessary and for any other activity related to compliance
 
19 resolution.
 
20      As used in this subsection, unless otherwise required by the
 
21 context, "compliance resolution" means a determination of
 
22 whether:
 
23      (1)  Any licensee or applicant under any chapter subject to
 

 
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 1           the jurisdiction of the department of commerce and
 
 2           consumer affairs has complied with that chapter;
 
 3      (2)  Any person subject to chapter 485 has complied with
 
 4           that chapter;
 
 5      (3)  Any person submitting any filing required by chapter
 
 6           514E or section 485-6(15) has complied with chapter
 
 7           514E or section 485-6(15);
 
 8      (4)  Any person has complied with the prohibitions against
 
 9           unfair and deceptive acts or practices in trade or
 
10           commerce; [or]
 
11      (5)  Any person subject to chapter 467B has complied with
 
12           that chapter[.]; or
 
13      (6)  Work involved in or supporting the above functions,
 
14           licensing or registration of individuals or companies
 
15           regulated by the department, consumer protection, and
 
16           other activities of the department.
 
17      The director shall prepare and submit an annual report to
 
18 the governor and the legislature on the use of the compliance
 
19 resolution fund.  The report shall describe expenditures made
 
20 from the fund including non-payroll operating expenses.  Any law
 
21 to the contrary notwithstanding, the compliance resolution fund
 
22 shall not be subject to sections 36-27 and 36-30 and moneys in
 
23 the fund shall not revert to the general fund."
 

 
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 1      SECTION 4.  Section 36-27, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "36-27  Transfers from special funds for central service
 
 4 expenses.  Except as provided in this section, and
 
 5 notwithstanding any other law to the contrary, from time to time
 
 6 the director of finance, for the purpose of defraying the
 
 7 prorated estimate of central service expenses of government in
 
 8 relation to all special funds, except the:
 
 9      (1)  Special summer school and intersession fund under
 
10           section 302A-1310;
 
11      (2)  School cafeteria special funds of the department of
 
12           education;
 
13      (3)  Special funds of the University of Hawaii;
 
14      (4)  State educational facilities improvement special fund;
 
15      (5)  Convention center capital special fund under section
 
16           206X-10.5 and the convention center operations special
 
17           fund under section 206X-10.6;
 
18      (6)  Special funds established by section 206E-6;
 
19      (7)  Housing loan program revenue bond special fund;
 
20      (8)  Housing project bond special fund;
 
21      (9)  Aloha Tower fund created by section 206J-17;
 
22     (10)  Domestic violence prevention special fund under section
 
23           321-1.3;
 

 
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 1     (11)  Spouse and child abuse special account under section
 
 2           346-7.5;
 
 3     (12)  Spouse and child abuse special account under section
 
 4           601-3.6;
 
 5     (13)  Funds of the employees' retirement system created by
 
 6           section 88-109;
 
 7     (14)  Unemployment compensation fund established under
 
 8           section 383-121;
 
 9     (15)  Hawaii hurricane relief fund established under chapter
 
10           431P;
 
11     (16)  Hawaii health systems corporation special funds;
 
12     (17)  Boiler and elevator safety revolving fund established
 
13           under section 397-5.5;
 
14     (18)  Tourism special fund established under section
 
15           [[]201B-11[]]; [and]
 
16     (19)  Department of commerce and consumer affairs' special
 
17           funds; and
 
18     (20)  Compliance resolution fund established under section
 
19           26-9;
 
20 shall deduct five per cent of all receipts of all other special
 
21 funds, which deduction shall be transferred to the general fund
 
22 of the State and become general realizations of the State.  All
 
23 officers of the State and other persons having power to allocate
 

 
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 1 or disburse any special funds shall cooperate with the director
 
 2 in effecting these transfers.  To determine the proper revenue
 
 3 base upon which the central service assessment is to be
 
 4 calculated, the director shall adopt rules pursuant to chapter 91
 
 5 for the purpose of suspending or limiting the application of the
 
 6 central service assessment of any fund.  No later than twenty
 
 7 days prior to the convening of each regular session of the
 
 8 legislature, the director shall report all central service
 
 9 assessments made during the preceding fiscal year."
 
10      SECTION 5.  Section 36-30, Hawaii Revised Statutes, is
 
11 amended by amending subsection (a) to read as follows:
 
12      "(a)  Each special fund, except the:
 
13      (1)  Transportation use special fund established by section
 
14           261D-1;
 
15      (2)  Special summer school and intersession fund under
 
16           section 302A-1310;
 
17      (3)  School cafeteria special funds of the department of
 
18           education;
 
19      (4)  Special funds of the University of Hawaii;
 
20      (5)  State educational facilities improvement special fund;
 
21      (6)  Special funds established by section 206E-6;
 
22      (7)  Aloha Tower fund created by section 206J-17;
 
23      (8)  Domestic violence prevention special fund under section
 

 
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 1           321-1.3;
 
 2      (9)  Spouse and child abuse special account under section
 
 3           346-7.5;
 
 4     (10)  Spouse and child abuse special account under section
 
 5           601-3.6;
 
 6     (11)  Funds of the employees' retirement system created by
 
 7           section 88-109;
 
 8     (12)  Unemployment compensation fund established under
 
 9           section 383-121;
 
10     (13)  Hawaii hurricane relief fund established under chapter
 
11           431P;
 
12     (14)  Convention center capital special fund established
 
13           under section 206X-10.5 and the convention center
 
14           operations special fund established under section 206X-
 
15           10.6;
 
16     (15)  Hawaii health systems corporation special funds; [and]
 
17     (16)  Tourism special fund established under section
 
18           [[]201B-11[]]; and
 
19     (17)  Compliance resolution fund established under section
 
20           26-9;
 
21 shall be responsible for its pro rata share of the administrative
 
22 expenses incurred by the department responsible for the
 
23 operations supported by the special fund concerned."
 

 
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 1      SECTION 6.  Section 92-24, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "92-24  Directors of finance and commerce and consumer
 
 4 affairs; fees.  The director of finance and the director of
 
 5 commerce and consumer affairs each shall charge the following
 
 6 fees:
 
 7      (1)  For administering any oath, $1;
 
 8      (2)  For preparing every photostat copy of any document on
 
 9           record in the director's office, 50 cents per page or
 
10           portion thereof;
 
11      (3)  For preparing every typewritten copy of any document on
 
12           record in the director's office, 50 cents per page or
 
13           portion thereof;
 
14      (4)  For preparing a certificate of compliance, $5 for the
 
15           original certificate, and $1 for each additional copy
 
16           thereof, of which $4 from each certificate and 75 cents
 
17           of each additional copy shall be deposited in the
 
18           [special fund referred to in section 415-128, and the
 
19           balance deposited to the general fund of the State;]
 
20           the compliance resolution fund established pursuant to
 
21           section 26-9(o);
 
22      (5)  For comparing any document submitted for certification,
 
23           15 cents per page or portion thereof;
 

 
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 1      (6)  For certifying any document on record in the director's
 
 2           office, 25 cents for each certification;
 
 3      (7)  For all other acts and duties, the fees of which are
 
 4           not otherwise provided for, such charges as each may
 
 5           from time to time prescribe."
 
 6      SECTION 7.  Section 207-14, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  The statement filed pursuant to this section shall be
 
 9 accompanied by a registration fee of $30.  The registration fee
 
10 shall be nonrefundable even in the event of a denial.  In
 
11 addition, foreign lenders who are currently registered pursuant
 
12 to this chapter shall pay an annual renewal fee of $30 in order
 
13 to maintain the immunities and privileges granted in this
 
14 section.  The annual renewal fee shall be due on or before
 
15 June 30, of each calendar year.  The failure to submit the annual
 
16 renewal fee as required shall result in the automatic
 
17 cancellation of any statements filed pursuant to this section but
 
18 shall not retroactively affect or impair any of the immunities
 
19 provided by this part.  In the commissioner's discretion, the
 
20 time period for filing of a renewal fee may be extended for an
 
21 additional thirty days beyond June 30 of each calendar year if
 
22 good cause exists for such an extension.  The registration fee,
 
23 annual renewal fee, and any other charge or fee assessed under
 

 
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 1 this part shall be deposited into the [financial institution
 
 2 examiners' revolving] compliance resolution fund established
 
 3 under section [412:2-109.] 26-9(o)."
 
 4      SECTION 8.  Section 269-33, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (a) to read as follows:
 
 6      "(a) There is established in the state treasury a public
 
 7 utilities commission special fund to be administered by the
 
 8 public utilities commission.  The proceeds of the fund shall be
 
 9 used by the public utilities commission and the division of
 
10 consumer advocacy of the department of commerce and consumer
 
11 affairs for all expenses incurred in the administration of
 
12 chapters 269, 271, 271G, and 486J; provided that the expenditures
 
13 of the public utilities commission shall be in accordance with
 
14 legislative appropriations.  On a quarterly basis, an amount not
 
15 exceeding thirty per cent of the proceeds remaining in the fund
 
16 after the deduction for central service expenses, pursuant to
 
17 section 36-27, shall be allocated by the public utilities
 
18 commission to the division of consumer advocacy and deposited in
 
19 the compliance resolution fund established pursuant to section
 
20 26-9(o); provided that all moneys allocated by the public
 
21 utilities commission from the fund to the division of consumer
 
22 advocacy shall be in accordance with legislative appropriations."
 
23      SECTION 9.  Section 412:2-105, Hawaii Revised Statutes, is
 

 
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 1 amended by amending subsections (c), (d), and (e) to read as
 
 2 follows:
 
 3      "(c)  The commissioner shall bill the affected financial
 
 4 institution for examination fees and expenses as soon as feasible
 
 5 after the close of the examination or investigation.  The
 
 6 affected financial institution shall pay the division of
 
 7 financial institutions within thirty days following the billing.
 
 8 All such payments shall be deposited to the [financial
 
 9 institution examiners' revolving] compliance resolution fund[.]
 
10 established pursuant to section 26-9(o).  All disputes relating
 
11 to these billings between the affected financial institution and
 
12 the commissioner shall be resolved in accordance with the
 
13 procedures for contested cases under chapter 91.
 
14      (d)  The commissioner, by rules adopted in accordance with
 
15 chapter 91, may set reasonable fee amounts to be collected by the
 
16 division in connection with its regulatory functions, including,
 
17 without limitation, any fees for renewals, applications,
 
18 licenses, and charters.  Unless otherwise provided by statute,
 
19 all such fees shall be deposited into the [financial institution
 
20 examiners' revolving] compliance resolution fund[.] established
 
21 pursuant to section 26-9(o).
 
22      (e)  A Hawaii financial institution that fails to make a
 
23 payment required by this section shall be subject to an
 

 
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 1 administrative fine of not more than $250 per day for each day it
 
 2 is in violation of this section, which fine, together with the
 
 3 amount due under this section, may be recovered pursuant to [the
 
 4 provisions of] section 412:2-611 and shall be deposited [to] into
 
 5 the [financial institution examiners' revolving] compliance
 
 6 resolution fund[.] established pursuant to section 26-9(o)."
 
 7      SECTION 10.  Section 412:2-109, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "412:2-109  [Financial institution examiners' revolving]
 
10 Compliance resolution fund and appointment of examiners.(a)
 
11 [There is established in the state treasury a separate fund
 
12 designated as the financial institution examiners' revolving
 
13 fund.] Any law to the contrary notwithstanding, fees and fines
 
14 collected by the commissioner of financial institutions shall be
 
15 deposited into the compliance resolution fund established
 
16 pursuant to section 26-9(o).
 
17      (b)  The commissioner may appoint financial institution
 
18 examiners, not subject to chapters 76 and 77, who shall examine
 
19 the affairs, transactions, accounts, records, documents, and
 
20 assets of financial institutions.  The commissioner also may
 
21 appoint administrative support personnel, not subject to chapters
 
22 76 and 77, who shall assist and support the examiners.  The
 
23 commissioner may pay the salaries of the financial institution
 

 
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 1 examiners and administrative support personnel from the
 
 2 [financial institution examiners' revolving] compliance
 
 3 resolution fund.
 
 4      (c)  The compliance resolution fund also may be used to
 
 5 reimburse financial institution examiners and administrative
 
 6 support personnel for the following expenses necessarily incurred
 
 7 on account of an examination and the education and training of
 
 8 financial institution examiners and administrative support
 
 9 personnel:
 
10      (1)  Actual travel expenses in amounts customary for these
 
11           expenses and approved by the commissioner;
 
12      (2)  A reasonable living expense allowance at a rate
 
13           customary for these expenses and approved by the
 
14           commissioner; and
 
15      (3)  Any fee or tuition necessary to attend educational and
 
16           training conferences, workshops, seminars, and any
 
17           similar events of this nature.
 
18      (d)  The compliance resolution fund also may be used for
 
19 other expenses relating to examinations of financial institutions
 
20 and administrative costs, including personnel costs of the
 
21 division and costs incurred by supporting offices and divisions.
 
22      (e)  All persons receiving any reimbursement or compensation
 
23 from the [financial institution examiners' revolving] compliance
 

 
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 1 resolution fund shall submit to the commissioner for approval a
 
 2 detailed account of all expenses and compensation necessarily
 
 3 incurred.  Persons shall not receive or accept any additional
 
 4 compensation on account of an examination.  In the case of an
 
 5 examination, any reimbursement or compensation made by the fund
 
 6 and approved by the commissioner shall be charged to the
 
 7 financial institution being examined by the commissioner and all
 
 8 receipts shall be credited to the fund.
 
 9      (f)  Moneys in the [financial institution examiners'
 
10 revolving] compliance resolution fund shall not revert to the
 
11 general fund.
 
12      (g)  [Before August 16, 1995, and thereafter before July 2,
 
13 1996, each financial institution subject to examination by the
 
14 commissioner shall pay a sum of $250 plus $50 for each office,
 
15 agency, and branch office maintained by the financial
 
16 institution, to the commissioner to be credited to the financial
 
17 institution examiners' revolving fund.
 
18      (h)  Before July 2, 1997, and each] Each year [thereafter]
 
19 before July 2, each financial institution subject to examination
 
20 by the commissioner shall pay a sum of $500 plus $100 for each
 
21 office, agency, and branch office maintained by the financial
 
22 institution, to the commissioner to be credited to the [financial
 
23 institution examiners' revolving] compliance resolution fund.
 

 
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 1 The commissioner may establish, increase, decrease, or repeal
 
 2 this fee when necessary pursuant to rules adopted in accordance
 
 3 with chapter 91."
 
 4      SECTION 11.  Section 412:2-315, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (d) to read as follows:
 
 6      "(d)  The commissioner may assess and collect from all
 
 7 affected Hawaii financial institutions their ratable share of the
 
 8 administrative costs incurred by the division in its
 
 9 administration of any emergency orders issued under this section.
 
10 Administrative costs assessed under this section shall be
 
11 deposited into the [financial institution examiners' revolving]
 
12 compliance resolution fund established under section [412:2-109.]
 
13 26-9(o).  The determination of the commissioner of which Hawaii
 
14 financial institution or institutions are "affected" and the
 
15 proration method the commissioner chooses to employ in making
 
16 assessments under this section may be appealed to the circuit
 
17 court as provided in chapter 91 by any Hawaii financial
 
18 institution aggrieved thereby."
 
19      SECTION 12.  Section 412:2-611, Hawaii Revised Statutes, is
 
20 amended as follows:
 
21      1.  By amending the title to read:
 
22      "412:2-611  Action to recover administrative fines; deposit
 
23 to [revolving] compliance resolution fund."
 

 
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 1      2.  By amending subsection (b) to read:
 
 2      "(b)  All administrative fines collected under authority of
 
 3 this chapter shall be deposited in the [financial institution
 
 4 examiners' revolving] compliance resolution fund established
 
 5 under section [412:2-109.] 26-9(o)."
 
 6      SECTION 13.  Section 415-128, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "415-128  Fees for filing documents and issuing
 
 9 certificates.  The following fees shall be paid to the director
 
10 upon the filing of corporate documents:
 
11      (1)  Articles of incorporation, $100;
 
12      (2)  Articles of amendment, $50;
 
13      (3)  Restated articles of incorporation, $50;
 
14      (4)  Articles of merger or consolidation, $200;
 
15      (5)  Articles of merger (subsidiary corporation), $100;
 
16      (6)  Articles of dissolution, $50;
 
17      (7)  Annual report of domestic and foreign corporations
 
18           organized for profit, $25;
 
19      (8)  Any other statement, report, certificate, application,
 
20           or other corporate document, except an annual report,
 
21           of a domestic or foreign corporation, $50;
 
22      (9)  Application for a certificate of authority, $100;
 
23     (10)  Application for a certificate of withdrawal, $50;
 

 
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 1     (11)  Reservation of corporate name, $20;
 
 2     (12)  Transfer of reservation of corporate name, $20;
 
 3     (13)  Good standing certificate, $25;
 
 4     (14)  Special handling fee for review of corporation
 
 5           documents, excluding articles of merger or
 
 6           consolidation, $50;
 
 7     (15)  Special handling fee for review of articles of merger
 
 8           or consolidation, $150;
 
 9     (16)  Special handling fee for certificates issued by the
 
10           department, $20 per certificate; and
 
11     (17)  Special handling fee for certification of documents, $1
 
12           per page.
 
13      All [special handling fees shall be credited to the special
 
14 fund established for use by the department in expediting the
 
15 processing of documents.  At least two temporary business
 
16 registration assistant I positions shall be paid out of the
 
17 special fund.] fees collected under this section shall be managed
 
18 in accordance with section 26-9(l).
 
19      The director [shall] may adjust the fees assessed under this
 
20 section, as necessary from time to time, through rules adopted
 
21 under chapter 91 [to ensure that the proceeds, together with all
 
22 other receipts of the special fund under this section do not
 
23 surpass the annual operating costs of the program.  All
 

 
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 1 unexpended and unencumbered moneys remaining on balance with the
 
 2 fund at the close of each fiscal year which are deemed, by the
 
 3 director of finance, to be in excess of the moneys necessary to
 
 4 carry out the processing of corporate documents over the next
 
 5 following fiscal year shall lapse to the credit of the state
 
 6 general fund]."
 
 7      SECTION 14.  Section 415B-155, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "415B-155  Fees for filing documents and issuing
 
10 certificates.  The following fees shall be paid to the director
 
11 upon the filing of corporate documents:
 
12      (1)  Articles of incorporation, $50;
 
13      (2)  Articles of amendment, $20;
 
14      (3)  Restated articles of incorporation, $20;
 
15      (4)  Articles of merger or consolidation, $100;
 
16      (5)  Articles of dissolution, $20;
 
17      (6)  Annual report of nonprofit domestic and foreign
 
18           corporations, $5;
 
19      (7)  Any other statement, report, certificate, application,
 
20           or other corporate document, except an annual report,
 
21           of a nonprofit domestic or foreign corporation, $20;
 
22      (8)  Application for a certificate of authority, $50;
 
23      (9)  Application for a certificate of withdrawal, $20;
 

 
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 1     (10)  Reservation of corporate name, $20;
 
 2     (11)  Transfer of reservation of corporate name, $20;
 
 3     (12)  Good standing certificate, $20;
 
 4     (13)  Special handling fee for review of corporation
 
 5           documents, excluding articles of merger or
 
 6           consolidation, $50;
 
 7     (14)  Special handling fee for review of articles of merger
 
 8           or consolidation, $150;
 
 9     (15)  Special handling fee for certificates issued by the
 
10           department, $20 per certificate; and
 
11     (16)  Special handling fee for certification of documents, $1
 
12           per page.
 
13      All [special handling fees shall be credited to a special
 
14 fund which may be established for use by the department in
 
15 expediting the processing of documents.  At least two temporary
 
16 business registration assistant I positions shall be paid out of
 
17 the special fund.] fees collected under this section shall be
 
18 managed in accordance with section 26-9(l)."
 
19      SECTION 15.  Section 425-12, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "425-12  Fee for filing documents and issuing certificates.
 
22 The following fees shall be paid to the director upon the filing
 
23 of general partnership documents:
 

 
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 1      (1)  Partnership registration statement, $25;
 
 2      (2)  Partnership change of name statement, $25;
 
 3      (3)  Partnership dissolution statement, $25;
 
 4      (4)  Foreign general partnership registration statement,
 
 5           $25;
 
 6      (5)  Statement of change, $25;
 
 7      (6)  Application for certificate of withdrawal, $10;
 
 8      (7)  Statement of correction, $25;
 
 9      (8)  Reservation of name, $20;
 
10      (9)  Transfer of reservation of name, $20;
 
11     (10)  Annual statement for domestic or foreign general
 
12           partnership, $10;
 
13     (11)  Good standing certificate, $25;
 
14     (12)  Any other statement, certificate, or other document for
 
15           a domestic or foreign general partnership, $25;
 
16     (13)  Special handling fee for review of any general
 
17           partnership document, $20;
 
18     (14)  Special handling fee for certificates issued by the
 
19           director, $20 per certificate; and
 
20     (15)  Special handling fee for certification of documents, $1
 
21           per page.
 
22      All [special handling fees shall be credited to the special
 
23 fund authorized by section 415-128.] fees collected under this
 

 
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 1 section shall be managed in accordance with section 26-9(l)."
 
 2      SECTION 16.  Section 425-169, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "425-169  Fee for recording.(a) The director shall collect
 
 5 the following fees for documents filed under this part:
 
 6      (1)  For each change of partnership name or statement of
 
 7           dissolution filed, a fee of $5 per partner, subject to
 
 8           a maximum fee of $5,000;
 
 9      (2)  For each annual statement filed, a fee of $50;
 
10      (3)  For each limited liability partnership registered, a
 
11           fee of $100 for each partner, subject to a maximum fee
 
12           of $10,000;
 
13      (4)  For each foreign limited liability partnership
 
14           registered, a fee of $1,000 if the partnership has
 
15           fewer than ten partners; $5,000 if the partnership has
 
16           ten or more but fewer than fifty partners; and $10,000
 
17           if the partnership has fifty or more partners;
 
18      (5)  For each reservation or transfer of limited liability
 
19           partnership name, a fee of $100;
 
20      (6)  For each certificate of correction or certificate of
 
21           amendment, a fee of $100;
 
22      (7)  For each certificate of good standing, a fee of $100;
 
23      (8)  For any other certificate, statement, or document, a
 

 
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 1           fee of $100; and
 
 2      (9)  For each certification of domestic or foreign
 
 3           partnership, a fee of $100.
 
 4      (b)  The following special handling fees shall be assessed
 
 5 by the director for expeditious review of the following
 
 6 documents:
 
 7      (1)  For limited liability partnerships:  certificate of
 
 8           limited liability partnership, $100; certificate of
 
 9           correction, $100; change of name statement, $100;
 
10           partnership dissolution statement, $100; annual
 
11           statement, $100; certification of limited liability
 
12           partnership, $1 a page; certificate of good standing,
 
13           $100;
 
14      (2)  For foreign limited liability partnerships:
 
15           registration statement, $100; certificate of
 
16           correction, $100; withdrawal application, $100; annual
 
17           statement, $100; certification of foreign partnership,
 
18           $1 a page; certificate of good standing, $100; and
 
19      (3)  For any other certificate or document authorized by
 
20           this part, $100.
 
21      All [special handling fees shall be credited to the special
 
22 fund authorized by section 415-128.  All other] fees collected
 
23 under this section shall be managed in accordance with section
 

 
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 1 26-9(1)."
 
 2      SECTION 17.  Section 425D-1107, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "425D-1107  Fees for filing documents and issuing
 
 5 certificates.  The following fees shall be paid to the director
 
 6 upon the filing of limited partnership documents:
 
 7      (1)  Certificate of limited partnership, $50;
 
 8      (2)  Any certificate of amendment, restatement, or
 
 9           correction, $20;
 
10      (3)  Certificate of cancellation, $20;
 
11      (4)  Annual statement for domestic or foreign limited
 
12           partnership, $10;
 
13      (5)  Any other certificate or document of domestic or
 
14           foreign limited partnership, $20;
 
15      (6)  Application for registration as a foreign limited
 
16           partnership, $100;
 
17      (7)  Any certificate of amendment or agent change for
 
18           foreign limited partnership, $20;
 
19      (8)  Application for certificate of withdrawal of foreign
 
20           limited partnership, $20;
 
21      (9)  Reservation of name, $20;
 
22     (10)  Transfer of reservation of name, $20;
 
23     (11)  Good standing certificate, $20;
 

 
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 1     (12)  Special handling fee for review of any limited
 
 2           partnership document, $50;
 
 3     (13)  Special handling fee for certificates issued by the
 
 4           director, $20 per certificate; and
 
 5     (14)  Special handling fee for certification of documents, $1
 
 6           per page.
 
 7      All [special handling fees shall be credited to the special
 
 8 fund authorized by section 415-128.] fees collected under this
 
 9 section shall be managed in accordance with section 26-9(l)."
 
10      SECTION 18.  Section 428-1301, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "428-1301  Fees.  The following fees shall be paid to the
 
13 director upon the filing and issuance of records under this
 
14 chapter:
 
15      (1)  Articles of organization, $100;
 
16      (2)  Articles of amendment, $50;
 
17      (3)  Restated articles of organization, $50;
 
18      (4)  Articles of merger, $200;
 
19      (5)  Statement of dissociation, $50;
 
20      (6)  Articles of termination, $50;
 
21      (7)  Application for reinstatement for administratively
 
22           terminated limited liability company, $50;
 
23      (8)  Annual report, $25;
 

 
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 1      (9)  Statement of change of designated office or agent for
 
 2           service of process, or both, for limited liability
 
 3           company or foreign limited liability company, $50;
 
 4     (10)  Statement of resignation of agent for service of
 
 5           process, $50;
 
 6     (11)  Any other statement or document of a domestic or
 
 7           foreign limited liability company, $50;
 
 8     (12)  Application for certificate of authority for foreign
 
 9           limited liability company, $100;
 
10     (13)  Application for cancellation of authority of foreign
 
11           limited liability company, $50;
 
12     (14)  Reservation of name, $25;
 
13     (15)  Good standing certificate, $25;
 
14     (16)  Any other record not otherwise covered in this part,
 
15           $50;
 
16     (17)  Certified copy of any record relating to a limited
 
17           liability company or foreign limited liability company,
 
18           25 cents per page, and $10 for the certificate and
 
19           affixing the seal thereto;
 
20     (18)  Special handling fee for review of any record other
 
21           than articles of merger, $80;
 
22     (19)  Special handling fee for review of articles of merger,
 
23           $200;
 

 
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 1     (20)  Special handling fee for certificates issued by the
 
 2           director not otherwise covered by this part, $10 per
 
 3           certificate;
 
 4     (21)  Special handling fee for certification of record, $1
 
 5           per page; and
 
 6     (22)  Any service of notice, demand, or process upon the
 
 7           director as agent for service of process of a limited
 
 8           liability company or foreign limited liability company,
 
 9           $50, which amount may be recovered as taxable costs by
 
10           the party to the suit or action causing such service to
 
11           be made if such party prevails in the suit or action.
 
12      All [special handling fees shall be credited to the special
 
13 fund authorized by section 415-128.] fees collected under this
 
14 section shall be managed in accordance with section 26-9(l)."
 
15      SECTION 19.  Section 440G-15, Hawaii Revised Statutes, is
 
16 amended to read as follows: 
 
17      "440G-15  Annual fees.(a) Each cable operator shall pay
 
18 an annual fee to be determined by the director.  The fees so
 
19 collected under this section shall be [used to offset the costs
 
20 of administering this chapter.] deposited into the compliance
 
21 resolution fund established under section 26-9(o).
 
22      (b)  The director shall adjust the fees assessed under this
 
23 section, as necessary from time to time, [to ensure that the
 

 
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 1 gross proceeds collected do not surpass the annual operating
 
 2 costs of the program.] pursuant to rules adopted in accordance
 
 3 with chapter 91."
 
 4      SECTION 20.  Section 449-14, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "449-14  Fees.  The following fees shall be paid by
 
 7 licensed escrow depositories to the commissioner and, together
 
 8 with any administrative penalty or other charge assessed under
 
 9 this chapter, shall be deposited into the [financial institution
 
10 examiners' revolving] compliance resolution fund[:] established
 
11 pursuant to 26-9(o):
 
12      (1)  For filing and investigation of an escrow depository's
 
13           application for license, $2,000;
 
14      (2)  For initial issuance and annual renewal of an escrow
 
15           depository's license, $100;
 
16      (3)  For initial issuance and annual renewal of a branch
 
17           office license, $50; and
 
18      (4)  For reissuance of a license or endorsement on the
 
19           license for the change in the business address of its
 
20           office, $25.
 
21      An escrow depository that fails to make a payment required
 
22 by this section shall be subject to an administrative penalty of
 
23 not more than $200 per day for each day it is in violation of
 

 
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 1 this section."
 
 2      SECTION 21.  Section 482-2, Hawaii Revised Statutes, is
 
 3 amended by amending subsection (b) to read as follows:
 
 4      "(b)  Before any person may receive a certificate of
 
 5 registration of a print, label, or trademark, the person shall
 
 6 file in the office of the director of commerce and consumer
 
 7 affairs an application for the registration of the print, label,
 
 8 or trademark, with a declaration, certified by the applicant,
 
 9 stating that the applicant is the sole and original proprietor or
 
10 the assign of the proprietor of this print, label, or trademark,
 
11 and describing the goods or manufactured articles for which the
 
12 print, label, or trademark is used, and stating the manner in
 
13 which the print, label, or trademark is used.  Before any person
 
14 may receive a certificate of registration of a service mark or
 
15 trade name, the person shall file in the office of the director
 
16 an application for the registration thereof, with a declaration,
 
17 certified, as aforesaid, stating that the person is the sole and
 
18 original proprietor of the service mark or trade name, or the
 
19 assign of the proprietor and setting forth the nature of the
 
20 business in which the service mark or trade name is used.  The
 
21 application shall be accompanied by two exact copies of the
 
22 print, label, trademark, service mark, or trade name.  Upon
 
23 filing the application, the applicant shall pay to the director a
 

 
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 1 fee of $50.  A special handling fee of $20 for expediting
 
 2 registration of a trade name, print, label, trademark, or service
 
 3 mark shall be assessed by the department.  All special handling
 
 4 fees shall be credited to the [special fund authorized by section
 
 5 415-128.] compliance resolution fund established under section
 
 6 26-9."
 
 7      SECTION 22.  Act 216, Session Laws of Hawaii 1997, is
 
 8 amended by amending section 13 to read as follows:
 
 9      "SECTION 13.  This Act shall take effect on July 1, 1997,
 
10 and shall be repealed on June 30, 2000; provided that any
 
11 statutory or session law material in this Act in existence on
 
12 June 30, 1997, shall be reenacted on July 1, 2000, in the same
 
13 form in which it existed on June 30, 1997[.]; and provided
 
14 further that the amendments made to sections 36-27 and 36-30,
 
15 Hawaii Revised Statutes, by Act   , Session Laws of Hawaii 1999,
 
16 shall be retained."
 
17      SECTION 23.  Act 142, Session Laws of Hawaii 1998, is
 
18 amended by amending section 9 to read as follows:
 
19      "SECTION 9.  This Act shall take effect upon its approval
 
20 and shall be repealed on July 31, 2003, except that section 3 of
 
21 this Act shall not be repealed; provided that sections 36-27 and
 
22 397-5(b), Hawaii Revised Statutes, shall be reenacted in the form
 
23 in which they read on the day before the approval of this Act[.];
 

 
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 1 and provided further that the amendments made to sections 36-27,
 
 2 Hawaii Revised Statutes, by section 2 of Act    , Session Laws of
 
 3 Hawaii 1999, shall be retained."
 
 4      SECTION 24.  In printing this Act, the revisor of statutes
 
 5 shall insert the appropriate number of this Act in sections 22
 
 6 and 23 of this Act.
 
 7      SECTION 25.  All acts passed by the legislature during this
 
 8 regular session of 1999, whether enacted before or after the
 
 9 effective date of this Act, shall be amended to conform to this
 
10 Act unless such acts specifically provide that this Act is being
 
11 amended.
 
12      SECTION 26.  Any Act passed by the legislature during this
 
13 regular session of 1999, whether enacted before or after the
 
14 effective date of this Act that creates a special or revolving
 
15 fund to be administered by the insurance commissioner shall not
 
16 become part of the compliance resolution fund.
 
17      SECTION 27.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 28.  This Act shall take effect on July 1, 1999.