1097
HOUSE OF REPRESENTATIVES                H.B. NO.           
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 licensing boards regulating a
 
 3 variety of professions and occupations under the jurisdiction of
 
 4 the department of commerce and consumer affairs.
 
 5      Oversight of these professions and occupations will continue
 
 6 under the control of one entity, the department of commerce and
 
 7 consumer affairs.
 
 8                  PART I.  AMENDMENTS TO TITLE 25
 
 9      SECTION 2.  Section 437-1.1, Hawaii Revised Statutes, is
 
10 amended as follows:
 
11      1.  By adding two new definitions to be appropriately
 
12 inserted and to read as follows:
 
13      ""Department" means the department of commerce and consumer
 
14 affairs.
 
15      "Director" means the director of commerce and consumer
 
16 affairs."
 
17      2.  By amending the definition of "dealer" to read as
 
18 follows:
 
19      ""Dealer" includes "auction" as defined in this section or
 

 
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 1 any person not expressly excluded by this chapter engaged in the
 
 2 business of selling, soliciting, offering, or attempting to
 
 3 negotiate sales, purchases, or exchanges of motor vehicles or any
 
 4 interest therein, including options to purchase motor vehicles.
 
 5 "New motor vehicle dealer" means a dealer who engages in the
 
 6 business of selling at wholesale or retail, or both, new motor
 
 7 vehicles or new and used motor vehicles.  "Used motor vehicle
 
 8 dealer" means a dealer who engages in the business of selling at
 
 9 wholesale or retail, or both, only used motor vehicles.  The term
 
10 "dealer" excludes a person who sells or purchases motor vehicles
 
11 in the capacity of:
 
12      (1)  A receiver, trustee, personal representative, guardian,
 
13           or any other person appointed by or acting under a
 
14           judgment or order of any court;
 
15      (2)  A public officer while performing official duties;
 
16      (3)  A holder of an auction license issued under this
 
17           chapter when acting within the scope of the license;
 
18      (4)  An insurance company, finance company, bank, or other
 
19           financial institution selling or offering for sale
 
20           motor vehicles repossessed or foreclosed by it under
 
21           the terms of a credit sale contract or security
 
22           agreement;
 
23      (5)  A person not engaged in the business of selling or
 

 
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 1           purchasing motor vehicles when acquiring or disposing
 
 2           of motor vehicles for the person's own personal,
 
 3           family, or business use; provided that the vehicles are
 
 4           acquired or disposed of for the person's use in good
 
 5           faith and not for the purpose of evading any provision
 
 6           of this chapter;
 
 7      (6)  A consumer consultant who is not engaged in the
 
 8           business of selling, soliciting, offering, or
 
 9           attempting to negotiate sales or exchanges of motor
 
10           vehicles or any interest therein for any dealer, and
 
11           who for a fee provides specialized information and
 
12           expertise in motor vehicle sales transactions to
 
13           consumers wishing to purchase or lease motor vehicles.
 
14           The consumer consultant shall register and pay a fee to
 
15           the [board] director prior to offering consultant
 
16           services; or
 
17      [[](7)[]]   A Hawaii bank or its affiliate selling or
 
18           offering for sale motor vehicles surrendered or
 
19           redelivered to it under the terms of a lease, or sold
 
20           by it pursuant to a purchase option contained in a
 
21           lease."
 
22      3.  By deleting the definition of "board".
 
23      [""Board" means the motor vehicle industry licensing board
 

 
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 1 created by this chapter."]
 
 2      SECTION 3.  Section 437-2, Hawaii Revised Statutes, is
 
 3 amended by amending subsection (b) to read as follows:
 
 4      "(b)  A license issued under this chapter shall authorize
 
 5 the holder to engage in the same business at branch locations in
 
 6 the same county for which the license is issued during the term
 
 7 thereof; provided that each branch location is approved by the
 
 8 [board.] director."
 
 9      SECTION 4.  Section 437-4, Hawaii Revised Statutes, is
 
10 amended by amending subsection (d) to read as follows:
 
11      "(d)  Display of motor vehicle at unlicensed premises.  All
 
12 dealers or salespersons shall obtain prior approval of the
 
13 [board] director, through its executive officer, to display motor
 
14 vehicles for advertising purposes at or on any place other than
 
15 the licensed premises."
 
16      SECTION 5.  Section 437-5, Hawaii Revised Statutes, is
 
17 repealed.
 
18      ["437-5  Board.  A motor vehicle industry licensing board
 
19 is created and shall consist of seven members.  Three of the
 
20 members shall be engaged in the motor vehicle industry and four
 
21 of the members shall be private citizens not connected with the
 
22 industry."]
 
23      SECTION 6.  Section 437-6, Hawaii Revised Statutes, is
 

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

 
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 1           observed for the issuance of a duplicate license in
 
 2           place of one alleged to have been lost or destroyed,
 
 3           including a requirement for any indemnity deemed
 
 4           appropriate to the case;
 
 5      (4)  Prescribe all forms to be used for the purposes of this
 
 6           chapter not otherwise provided for;
 
 7      (5)  Establish, by rules, minimum qualifications for
 
 8           salespersons or dealers which must be met by applicants
 
 9           prior to the issuance of any license; and
 
10      (6)  The exercise by the [board] director of power,
 
11           authority, and discretion in it so vested shall be
 
12           final in each case and shall not be reviewable by or
 
13           appealable to any court or tribunal, except as
 
14           otherwise provided in chapter 91 or in this chapter."
 
15      SECTION 7.  Section 437-7, Hawaii Revised Statutes, is
 
16 amended as follows:
 
17      1.  By amending subsections (a), (b), (c), and (d) to read
 
18 as follows:
 
19      "(a)  Any person desiring the issuance of a license under
 
20 this chapter shall file an application therefor with the [motor
 
21 vehicle industry licensing board.] director.  Prior to the
 
22 expiration of the term of a license, the holder shall file an
 
23 application for renewal of the license.  The [board] director
 

 
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 1 shall prescribe the form, information required, manner, and time
 
 2 for presentation of applications for issuance or renewal of
 
 3 licenses issued under this chapter, except as otherwise provided
 
 4 in this chapter.
 
 5      (b)  A person applying for a salesperson's license under
 
 6 this section shall be granted a temporary license by the
 
 7 executive officer on behalf of the [board;] director; provided no
 
 8 patent disqualification of the applicant is disclosed or no valid
 
 9 objection to the granting of the temporary license is apparent
 
10 and if all requirements relative to the filing of the application
 
11 appear to have been met and the dealer files a statement that
 
12 this person is employed by and under the supervision of the
 
13 dealer.  A fee shall be charged for the issuance of the temporary
 
14 license, as provided in rules adopted by the director of commerce
 
15 and consumer affairs pursuant to chapter 91, and the license
 
16 shall remain in effect until the [board] director approves or
 
17 denies the application for a permanent license.
 
18      (c)  Requirements for financial reviews or financial
 
19 statements shall be as follows:
 
20      (1)  Applicants for the issuance of a dealer's or auction's
 
21           license shall furnish the following financial review or
 
22           financial statement to the [board:] director:
 
23           (A)  An applicant proposing to operate as a sole
 

 
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 1                proprietorship shall furnish a personal financial
 
 2                review or financial statement and a financial
 
 3                review or financial statement of the proposed
 
 4                business;
 
 5           (B)  An applicant proposing to operate as a partnership
 
 6                shall furnish a personal financial review or
 
 7                financial statement for each general partner and a
 
 8                financial review or a financial statement of the
 
 9                partnership; and
 
10           (C)  A corporate applicant shall submit a corporate
 
11                financial review or financial statement;
 
12      (2)  The [board] director shall determine and prescribe the
 
13           requirement of, form, and information required in
 
14           financial reviews and financial statements for
 
15           applicants for other licenses;
 
16      (3)  All financial reviews and financial statements shall be
 
17           certified as to accuracy by a public or certified
 
18           public accountant; and
 
19      (4)  The purpose of the financial review and the financial
 
20           statement is to provide the [board] director with
 
21           information to assist it in determining the financial
 
22           capability and integrity of the applicant.
 
23      (d)  Requirement for lines of credit shall be as follows:
 

 
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 1      (1)  Applicants for issuance of a dealer's license shall
 
 2           obtain an inventory or flooring line of credit from a
 
 3           federally insured financial institution or from a
 
 4           financing source having a net worth of at least
 
 5           $50,000,000.  The line of credit shall be in the
 
 6           following amount:
 
 7           (A)  For new motor vehicle dealer applicants, $500,000
 
 8                or the amount required in the applicant's dealer
 
 9                sales and service agreement, whichever is less;
 
10           (B)  For used motor vehicle dealer applicants, $50,000;
 
11                and
 
12           (C)  For new and used motorcycle and motor scooter
 
13                dealer applicants, $50,000;
 
14      (2)  Applicants for issuance of a dealer's license shall
 
15           provide the [board] director with a photocopy of the
 
16           financing statement filed at the bureau of conveyances
 
17           of the department of land and natural resources,
 
18           securing the line of credit;
 
19      (3)  Applicants for the issuance of an auction license shall
 
20           obtain a secured line of credit in the amount of
 
21           $100,000 from a federally insured financial
 
22           institution; and
 
23      (4)  When an inventory or flooring line of credit cannot
 

 
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 1           reasonably be obtained by a dealer, the [board]
 
 2           director may provide that a bond, in an amount set
 
 3           forth in the board's rules, be obtained as an
 
 4           alternative form of security for the inventory or
 
 5           flooring line of credit."
 
 6      2.  By amending subsections (h), (i), and (j) to read as
 
 7 follows:
 
 8      (h)  After the filing of the application, the [board]
 
 9 director may interview the applicant and upon the interview and
 
10 other information that is before the [board,] director, it may
 
11 grant or deny the license.
 
12      (i)  No dealer's or auction's license shall be issued under
 
13 this chapter unless and until the applicant submits:
 
14      (1)  A description of the premises intended to become the
 
15           licensed premises, the office facilities, equipment,
 
16           and surrounding conditions;
 
17      (2)  A statement that the applicant has met the requirements
 
18           under section 437-11;
 
19      (3)  A copy of a minimum one-year lease or rental agreement
 
20           for the site the applicant has entered into; and
 
21      (4)  Photographs of the premises and facilities;
 
22 and the [board] director is satisfied that the applicant has met
 
23 all the requirements as provided in this chapter and that all
 

 
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 1 other general conditions and proposed methods of operation under
 
 2 the license are such as are suitable for carrying on the business
 
 3 in a reputable manner.
 
 4      (j)  Limitations on licenses shall be as follows:
 
 5      (1)  A dealer's or auction's license issued under this
 
 6           chapter shall authorize the doing of the business at
 
 7           the licensed premises, the boundaries of which shall be
 
 8           determined by the map or plan submitted together with
 
 9           the application for license approved by the [board;]
 
10           director; except in the case of an enlargement or
 
11           reduction of the licensed premises with the approval of
 
12           the [board] director endorsed on an amended map or
 
13           plan; and
 
14      (2)  A license issued under this chapter shall authorize the
 
15           doing of a business thereunder only for the county in
 
16           which the license has been issued; and in the case of a
 
17           salesperson, the license shall authorize the
 
18           salesperson to be a salesperson only for the dealer
 
19           named in the application for a license or an amended
 
20           license."
 
21      3.  By amending subsection (l) to read as follows:
 
22      "(l)  The executive officer on behalf of the director may
 
23 grant [preliminary] approval of a dealer or auction license
 

 
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 1 application if all licensing requirements have been met.  [The
 
 2 board shall ratify all preliminary approvals]."
 
 3      SECTION 8.  Section 437-11, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (a) to read as follows:
 
 5      "(a)  Requirements to be met before issuance of dealer's and
 
 6 auction's license.
 
 7      (1)  The following requirements shall be met by an applicant
 
 8           for a dealer's license before a license may be issued
 
 9           by the [motor vehicle industry licensing board:]
 
10           director:
 
11           (A)  The applicant has a site which will be used
 
12                primarily for the purpose of selling, displaying,
 
13                offering for sale, or otherwise dealing in motor
 
14                vehicles;
 
15           (B)  The site has a permanent building thereon suitable
 
16                for the display at any one time of at least three
 
17                motor vehicles having an average base of at least
 
18                ninety inches; and
 
19           (C)  The site has suitable sanitation facilities.
 
20      (2)  The following requirements shall be met by an applicant
 
21           for an auction's license before a license may be issued
 
22           by the [motor vehicle industry licensing board:]
 
23           director:
 

 
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 1           (A)  The applicant has a permanent site which will be
 
 2                used primarily for the purpose of selling,
 
 3                displaying, offering for sale, or otherwise
 
 4                dealing in motor vehicles; and
 
 5           (B)  The site has suitable sanitation facilities."
 
 6      SECTION 9.  Section 437-13, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "437-13  Disclosure of dealer.  Where a person licensed
 
 9 according to this chapter represents a buyer in the State in
 
10 purchasing or attempting to purchase a motor vehicle from or
 
11 through a dealer or broker not licensed in the State (hereinafter
 
12 called "nonresident") residing or doing business without the
 
13 State the person shall file with the [motor vehicle industry
 
14 licensing board] director each month a statement showing the name
 
15 and address of all such nonresidents with whom the person has
 
16 actually negotiated any such sale for the past month and with
 
17 whom the person is authorized in writing to negotiate or continue
 
18 to negotiate or to make such sales.  All such statements shall be
 
19 under oath."
 
20      SECTION 10.  Section 437-16, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "437-16  Records to be kept.  Every motor vehicle dealer
 
23 shall keep a record of the purchases, consignments, sales and
 

 
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 1 exchanges, moneys, commissions, or any other thing of value paid
 
 2 or agreed to be paid to any person for each motor vehicle
 
 3 purchased, sold, consigned to be sold, or exchanged, and the
 
 4 record shall be at all times open to the inspection of the [motor
 
 5 vehicle industry licensing board] director or any peace officer
 
 6 designated by the [board] director to inspect the record.  The
 
 7 record shall contain:
 
 8      (1)  The names and addresses of all persons from whom any
 
 9           motor vehicle is purchased or received;
 
10      (2)  The names and addresses of all persons to whom any
 
11           motor vehicle is sold, consigned to be sold, or
 
12           exchanged;
 
13      (3)  The names and addresses of all persons who have
 
14           received any moneys, commissions, or any other thing of
 
15           value, or to whom the same is due and owing, in
 
16           connection with the sale of any motor vehicle; and
 
17      (4)  The license number, motor number, serial number, and
 
18           style of any such motor vehicle."
 
19      SECTION 11.  Section 437-18, Hawaii Revised Statutes, is
 
20 amended as follows:
 
21      1.  By amending subsection (a) to read as follows:
 
22      "(a)  Each broker receiving a license shall give to the
 
23 [motor vehicle industry licensing board] director and keep in
 

 
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 1 force a bond or bonds in the penal sum totaling not less than
 
 2 $200,000."
 
 3      2.  By amending subsections (c) and (d) to read as follows:
 
 4      "(c)  If the applicant maintains an established place of
 
 5 business in a county which is used, or will be used, for the
 
 6 purpose of selling, displaying, or offering to negotiate for the
 
 7 purchase of motor vehicles, the market value of which, over and
 
 8 above all liens, charges, and encumbrances thereon, is equal to
 
 9 or greater than ninety per cent of the amount of bond required by
 
10 this section, and the financial condition of the applicant is
 
11 such that, in the judgment of the [board,] director, the excess
 
12 over ten per cent of the bond may be waived without unduly
 
13 jeopardizing the rights and interests of present and prospective
 
14 claimants against the applicant, then the amount of the bond may
 
15 be reduced at the discretion of the [board.] director.
 
16      (d)  The bond shall be subject to the following conditions:
 
17      (1)  That the broker will faithfully and truly comply with
 
18           all the valid provisions of this chapter as the same
 
19           now are or may hereafter be amended, and with any rule
 
20           adopted by the [board] director pursuant to this
 
21           chapter;
 
22      (2)  That the broker will not be guilty of fraud,
 
23           misrepresentation, or other improper business conduct
 

 
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 1           in connection with the selling, purchasing, negotiating
 
 2           for purchase, or otherwise dealing with motor vehicles
 
 3           or any other property related thereto, and will satisfy
 
 4           all judgments rendered against the broker based in
 
 5           whole or in part upon representations or warranties
 
 6           made in connection with any retail sale or negotiation
 
 7           for the purchase of a motor vehicle; and
 
 8      (3)  That the broker will protect the treasurer of the
 
 9           county and any purchaser of any vehicle or any person
 
10           acquiring any lien thereon or successor in interest of
 
11           any such person against any loss on account of any
 
12           defect in or undisclosed encumbrance upon the title of
 
13           any motor vehicle, registered by the treasurer in
 
14           reliance upon any certificate, affidavit, or other
 
15           representation of the dealer, or registration or
 
16           transfer of registration procured by the broker."
 
17      SECTION 12.  Section 437-21.1, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "437-21.1  Bonds of auctions.  The bond of an auction shall
 
20 be in the same amount and under the same terms and conditions as
 
21 required for a new motor vehicle dealer in accordance with rules
 
22 adopted by the [motor vehicle industry licensing board.]
 
23 director."
 

 
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 1      SECTION 13.  Section 437-23, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  Reapplication.  If a licensee fails to renew the
 
 4 licensee's license on or before June 30 of each even-numbered
 
 5 year and desires to continue in the business or activity for
 
 6 which the license was issued, the licensee shall file a new
 
 7 application for a license and shall pay in addition to the
 
 8 license and filing fee a penalty of twenty-five per cent of the
 
 9 original license fee; provided that the [board] director may for
 
10 good cause waive the collection of all or a part of the penalty;
 
11 and provided that nothing contained in this section shall limit
 
12 the power of the [board] director to deny any application on the
 
13 grounds provided in this chapter."
 
14      SECTION 14.  Section 437-24, Hawaii Revised Statutes, is
 
15 amended by amending subsections (c) and (d) to read as follows:
 
16      "(c)  Upon the termination, suspension, or revocation of a
 
17 license, the holder shall deliver it to the [board.] director.
 
18      (d)  Where the termination is not the result of suspension
 
19 or revocation by the [board] director for cause, the [board]
 
20 director shall reissue the license to the holder without cost if
 
21 the holder resumes the holder's business or employment within the
 
22 term for which it was issued."
 
23      SECTION 15.  Section 437-25, Hawaii Revised Statutes, is
 

 
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 1 amended by amending subsections (a) and (b) to read as follows:
 
 2      "(a)  Prior to entering the employ of a dealer, other than
 
 3 the one for which the salesperson's license was issued, a
 
 4 salesperson shall apply to the [board] director for an amended
 
 5 license authorizing the new employment.  Prior to moving or
 
 6 amending the premises or adding branch locations of a business
 
 7 for which a license was issued under this chapter, the holder
 
 8 shall apply for an amended license authorizing the change.
 
 9      (b)  The executive officer on behalf of the [board] director
 
10           is authorized to issue the amended license of a
 
11           salesperson [subject to the ratification by the board
 
12           for the first three amendments to a license during the
 
13           original term thereof.  The board shall issue the
 
14           fourth and following amendments to such license during
 
15           the term of the original license.  The executive
 
16           officer may issue an amended license for] and new or
 
17           amended premises or for additional branch locations of
 
18           the business under a license [subject to the board's
 
19           ratification]; provided that the executive officer may
 
20           not issue an amended license when a prior amendment to
 
21           the same license has not been acted upon by the
 
22           [board.] director.  Unless good cause exists, the
 
23           amended license shall be freely issued for the
 

 
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 1           remainder of the original term."
 
 2      SECTION 16.  Section 437-27, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "437-27  Change of status, notice.  If the status of any
 
 5 licensee changes during the period for which the license is
 
 6 issued in respect to:
 
 7      (1)  Changes in officers, directors, or limited partners of
 
 8           the licensee or termination of the employment of any
 
 9           licensed salesperson;
 
10      (2)  The transfer of more than ten per cent of the ownership
 
11           of the licensee to one person;
 
12      (3)  The termination of a licensed premises by a dealer or
 
13           auction or the acquiring or termination of a franchise;
 
14           or
 
15      (4)  The assignment of any part of the licensee's assets for
 
16           the benefit of creditors;
 
17 the licensee shall within fifteen days thereafter file with the
 
18 [board] director notice of such change containing such
 
19 information as may be required by the [board;] director; provided
 
20 that nothing contained in this section shall limit the power of
 
21 the [board] director to suspend, revoke, or deny the renewal of
 
22 such license or impose any other penalty authorized by this
 
23 chapter."
 

 
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 1      SECTION 17.  Section 437-27.5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "437-27.5  Requirements to maintain license.  A broker
 
 4 shall have and maintain in full force and effect a bond as
 
 5 required under section 437-18.  Failure, refusal, or neglect to
 
 6 maintain in full force and effect a bond shall cause the
 
 7 automatic suspension of the license effective as of the date of
 
 8 expiration or cancellation of the bond.  The license shall not be
 
 9 reinstated until a bond as required under section 437-18 is
 
10 received by the [board.] director.
 
11      Failure to effect a reinstatement of a suspended license
 
12 within sixty days of the suspension shall cause the license and
 
13 all fees to be forfeited.
 
14      A licensee may, within fifteen calendar days after receipt
 
15 of notification of the license forfeiture, request an
 
16 administrative hearing pursuant to chapter 91 to review the
 
17 forfeiture."
 
18      SECTION 18.  Section 437-28, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "437-28  Suspension; revocation; fine; denial of issuance
 
21 or renewal of a license.(a)  In addition to any other actions
 
22 authorized by law, the [board,] director, after notice and
 
23 hearing as provided in chapter 91, and subject to appeal to the
 

 
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 1 circuit court of the circuit in which the [board] director has
 
 2 jurisdiction under the procedure and rules prescribed by the laws
 
 3 of the State or the applicable rules of the courts pertaining to
 
 4 appeals to circuit courts, may suspend, revoke, fine, or deny the
 
 5 renewal of any license, or prior to notice and hearing deny the
 
 6 issuance of any license for any cause authorized by law,
 
 7 including but not limited to circumstances where the [board]
 
 8 director finds that the applicant or holder, or any officer,
 
 9 director, general manager, trustee, partner, or stockholder
 
10 owning more than ten per cent interest of the applicant or
 
11 holder:
 
12      (1)  Has intentionally made a false statement of a material
 
13           fact in the application for a license or in any other
 
14           statement required by this chapter or has obtained or
 
15           attempted to obtain a license by fraud or
 
16           misrepresentation;
 
17      (2)  Has failed to comply, observe, or adhere to any
 
18           provision of this chapter or any other law relating to
 
19           the sale, taxing, or licensing of motor vehicles or any
 
20           rule or order made pursuant to this chapter;
 
21      (3)  Has committed a fraudulent act in selling, purchasing,
 
22           or otherwise dealing in motor vehicles or has
 
23           misrepresented the terms and conditions of a sale,
 

 
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 1           purchase, or contract for sale or purchase of a motor
 
 2           vehicle or any interest therein including an option to
 
 3           purchase motor vehicles;
 
 4      (4)  Has engaged in business under a past or present license
 
 5           issued pursuant to this chapter, in a manner as to
 
 6           cause injury to the public or to those with whom one is
 
 7           dealing;
 
 8      (5)  Has failed to comply, observe, or adhere to any law in
 
 9           any other respect on account whereof the [board]
 
10           director may deem the applicant or holder to be an
 
11           unfit or improper person to hold a license;
 
12      (6)  Has failed to meet or maintain the conditions and
 
13           requirements necessary to qualify for the issuance of a
 
14           license;
 
15      (7)  Is insolvent or has filed or is the subject of petition
 
16           for bankruptcy, wage earner's plan, or financial
 
17           reorganization plan; or has made or proposes to make an
 
18           assignment for benefit of creditors;
 
19      (8)  In the case of an individual applicant or holder of a
 
20           license, if the applicant or holder is not at least
 
21           eighteen years of age; in the case of a partnership
 
22           applicant or holder of a license, if any general or
 
23           limited partner thereof is not at least eighteen years
 

 
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 1           of age;
 
 2      (9)  Has charged more than the legal rate of interest on the
 
 3           sale or purchase or attempted sale or purchase or in
 
 4           arranging the sale or purchase of a motor vehicle or
 
 5           any interest therein including an option to purchase;
 
 6     (10)  Has violated any of the laws pertaining to false
 
 7           advertising or to credit sales in the offering,
 
 8           soliciting, selling, or purchasing, or arranging to
 
 9           sell or purchase a motor vehicle or any interest
 
10           therein;
 
11     (11)  Has wilfully failed or refused to perform any
 
12           unequivocal and indisputable obligation under any
 
13           written agreement involving the sale or purchase of a
 
14           motor vehicle or any interest therein including an
 
15           option to purchase;
 
16     (12)  Has been denied the issuance of a license under this
 
17           chapter for substantial culpable cause or for having
 
18           had a license issued under this chapter suspended,
 
19           revoked, or the renewal thereof denied for substantial
 
20           culpable cause;
 
21     (13)  Has entered or has attempted to enter or proposes to
 
22           enter into any contract or agreement contrary to this
 
23           chapter or any rule adopted thereunder;
 

 
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 1     (14)  Has been or is engaged or proposes to engage in the
 
 2           business of selling new motor vehicles as a dealer or
 
 3           auction without a proper franchise therefor;
 
 4     (15)  Has at any time employed or utilized or attempted or
 
 5           proposed to employ or utilize any person not licensed
 
 6           under this chapter who is required to be so licensed;
 
 7     (16)  Has entered or attempted to enter any one-payment
 
 8           contract, where the contract is required to be signed
 
 9           by the purchaser prior to removal of the motor vehicle
 
10           for test driving from the seller's premises;
 
11     (17)  Being a salesperson or dealer:
 
12           (A)  Has required a purchaser of motor vehicles as a
 
13                condition of sale and delivery thereof to purchase
 
14                special features, appliances, accessories, or
 
15                equipment not desired or requested by the
 
16                purchaser; provided that this prohibition shall
 
17                not apply as to special features, appliances,
 
18                accessories, or equipment which are ordinarily
 
19                installed on the vehicle when received or acquired
 
20                by the dealer;
 
21           (B)  Has represented and sold as an unused motor
 
22                vehicle any motor vehicle which has been operated
 
23                as a demonstrator, leased, or U-drive motor
 

 
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 1                vehicle;
 
 2           (C)  Has sold a new motor vehicle without providing or
 
 3                securing for the purchaser the standard factory
 
 4                new car warranty for the vehicle, unless the
 
 5                dealer or salesperson clearly notes in writing on
 
 6                the sales contract that the new motor vehicle is
 
 7                sold without the standard factory warranty;
 
 8           (D)  Has sold a new motor vehicle covered by a standard
 
 9                factory warranty without informing the purchaser
 
10                in writing that any repairs or other work
 
11                necessary on any accessories which were not
 
12                installed by the manufacturer of the vehicle may
 
13                not be obtainable in a geographic location other
 
14                than where the purchase occurred; provided that
 
15                the notice required by this section shall conform
 
16                to the plain language requirements of section
 
17                487A-1, regardless of the dollar amount of the
 
18                transaction; or
 
19           (E)  Has engaged in any improper business conduct,
 
20                including but not limited to employing,
 
21                contracting with, or compensating consumer
 
22                consultants;
 
23     (18)  Being an applicant or holder of a dealer's license:
 

 
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 1           (A)  Has sold or proposed to sell new motor vehicles
 
 2                without providing for the maintenance of a
 
 3                reasonable inventory of parts for new vehicles or
 
 4                without providing and maintaining adequate repair
 
 5                facilities and personnel for new vehicles at
 
 6                either the main licensed premises or at any branch
 
 7                location;
 
 8           (B)  Has employed or proposed to employ any salesperson
 
 9                who is not duly licensed under this chapter; or
 
10           (C)  Has sold or proposed to sell new motor vehicles
 
11                without being franchised therefor;
 
12     (19)  Being an applicant or holder of an auction's license
 
13           has sold or proposed to sell new motor vehicles without
 
14           being franchised therefor;
 
15     (20)  Being an applicant for a salesperson's license:
 
16           (A)  Does not intend to be employed as a salesperson
 
17                for a licensed motor vehicle dealer; or
 
18           (B)  Intends to be employed as a salesperson for more
 
19                than one dealer.
 
20      (b)  For disregard of an order suspending a license pursuant
 
21 to section 436B-23, the [board] director may summarily take
 
22 possession of and impound all motor vehicles belonging to or in
 
23 the possession of the licensee whether or not the vehicles are
 

 
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 1 situated upon the licensed premises, pending final action in this
 
 2 case or, without taking possession of the motor vehicles, may
 
 3 render them unusable; provided that the right of the [board]
 
 4 director to take any action and any liens for towing or storage
 
 5 or otherwise arising from the action are subject to and
 
 6 subordinate to any security interest that has attached to the
 
 7 motor vehicles prior thereto, and the [board,] director, prior to
 
 8 taking any action, shall give notice thereof to any secured party
 
 9 whose security interest in the motor vehicles is known to the
 
10 [board] director or who, prior to any action by the [board,]
 
11 director, had filed a financing statement covering the motor
 
12 vehicles or had noted the lien on the legal ownership
 
13 certificates thereof.
 
14      (c)  Any fine imposed by the [board] director after a
 
15 hearing in accordance with chapter 91 shall be no less than $100
 
16 nor no more than $1,000 for each violation.
 
17      (d)  In lieu of or in addition to the fine imposed under
 
18 this section, the [board] director may require the motor vehicle
 
19 dealer to make restitution to the customer.  Restitution may be
 
20 imposed in lieu of a fine even though the amount may exceed the
 
21 fine set forth in subsection (c)."
 
22      SECTION 19.  Section 437-29, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "437-29  Discretionary powers of [board.] the director.
 
 2 (a)  Where any applicant for a license or stockholder owning more
 
 3 than a ten per cent interest in the applicant or any officer,
 
 4 director, trustee, employee, or partner of the applicant has been
 
 5 guilty of any act or omission involving personal misconduct which
 
 6 by this chapter is made ground for refusing to issue a license or
 
 7 for revoking or suspending a license, such as the making of a
 
 8 false statement of a material fact in an application, the
 
 9 commission of a fraudulent act in connection with the sale or
 
10 negotiation for the purchase of motor vehicles, and the like, the
 
11 [board] director shall have discretion, nevertheless, to issue
 
12 the license or suspend or reject the revocation of the license,
 
13 upon such reasonable conditions, including the furnishing of an
 
14 additional bond not exceeding $5,000, as to future good conduct
 
15 of the applicant and other person concerned, as the [board]
 
16 director determines, provided the [board] director finds:
 
17      (1)  That there are extenuating circumstances that indicate
 
18           that the act or omission was not due to moral
 
19           turpitude; or
 
20      (2)  That a reasonable time fixed by rule of the [board,]
 
21           director, not less than one year, has elapsed since the
 
22           act or omission occurred, together with evidence of the
 
23           person's rehabilitation or general good character,
 

 
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 1           sufficient to indicate that the person is not likely to
 
 2           repeat the offense or engage in illegal, unlawful, or
 
 3           unconscionable practices; or
 
 4      (3)  That the favorable action by the [board] director will
 
 5           not jeopardize the public interest.
 
 6      (b)  Notification of the application of each dealer or
 
 7 auction approved by the [board,] director, or a report of the
 
 8 suspension, revocation, or change of status of a dealer's or
 
 9 auction's license shall be furnished to the affected county motor
 
10 vehicle registration division or finance department promptly upon
 
11 the granting, suspension, revocation, or change of status of the
 
12 license."
 
13      SECTION 20.  Section 437-35, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "437-35  Penalty.  Any person who violates any provision of
 
16 this chapter or rules of the [board,] department, or who engages
 
17 in the business as, or serves in the capacity of, or acts as a
 
18 motor vehicle dealer, motor vehicle salesperson, or motor vehicle
 
19 auction in the State or otherwise engages in the business of
 
20 selling or negotiating for the purchase of motor vehicles in this
 
21 State without being licensed as provided in this chapter shall be
 
22 fined not more than $1,000 and each day's violation or failure to
 
23 comply shall be deemed a separate offense."
 

 
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 1      SECTION 21.  Section 437-35.5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "437-35.5  Misdemeanor.  Any person who is convicted of
 
 4 violating any provision of this chapter or rules of the [board,]
 
 5 department, or who engages in the business as or serves in the
 
 6 capacity of, or acts as a motor vehicle dealer, motor vehicle
 
 7 salesperson, or motor vehicle auction in the State or otherwise
 
 8 engages in the business of selling or negotiating for the
 
 9 purchase of motor vehicles in this State without being licensed
 
10 as provided in this chapter shall have committed a misdemeanor
 
11 and be subject to a fine of not more than $1,000 or imprisoned
 
12 not more than one year, or both."
 
13      SECTION 22.  Section 437-36, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "437-36  Injunction; damages.  The [motor vehicle industry
 
16 licensing board] director or any person, firm, or corporation or
 
17 any trade association may maintain a suit to enjoin the
 
18 performance or the continuance of any act or acts by a person
 
19 acting without a license where a license is required by this
 
20 chapter, and if injured thereby, for the recovery of damages.  If
 
21 in the suit the court finds that the defendant has violated or is
 
22 violating any of the provisions of this chapter it may enjoin the
 
23 defendant from further violation thereof.  It shall not be
 

 
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 1 necessary that actual damages to the plaintiff or petitioner be
 
 2 alleged or proved.  Plaintiff or petitioner shall be entitled, if
 
 3 the plaintiff or petitioner procures a decree hereunder, to a
 
 4 reasonable attorney's fee to be allowed by the court."
 
 5      SECTION 23.  Section 437-39, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "437-39  Enforcement.  When necessary, the [board] director
 
 8 may enforce this chapter, including any rule adopted thereunder
 
 9 or decision rendered thereunder by applying to the circuit court
 
10 for any relief which may be appropriate, including injunctive
 
11 relief.  Further, the [board] director may apply to the circuit
 
12 court for any relief which may be appropriate including
 
13 injunctive relief to enjoin any licensee or other person who
 
14 violates or threatens to violate any provision of this chapter,
 
15 including any rule adopted thereunder."
 
16      SECTION 24.  Section 437-40, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "437-40  Information in applications, confidential; penalty
 
19 for divulging.  The applications for license and contracts
 
20 required by section 437-7 shall not be deemed a part of the
 
21 public records but shall be confidential information for use of
 
22 the treasurer and the [motor vehicle industry licensing board.]
 
23 director.  Whoever, except in a report to the treasurer or the
 

 
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 1 [board] director or when called on to testify in any court or
 
 2 proceeding, divulges any information contained in the
 
 3 applications and acquired by the official or employee in the
 
 4 official's or employee's capacity as an official or employee of
 
 5 the county treasurer's office or of the [board] director shall be
 
 6 fined not less than $50 nor more than $100.
 
 7      Provided that the treasurer or the [board] director may
 
 8 permit the inspection of any such applications by any other
 
 9 person upon being satisfied that the inspection is desired for
 
10 some lawful and proper purpose."
 
11      SECTION 25.  Section 437B-1, Hawaii Revised Statutes, is
 
12 amended as follows:
 
13      1.  By adding the following definition to be appropriately
 
14 inserted and to read as follows:
 
15      ""Director" means the director of commerce and consumer
 
16 affairs.
 
17      2.  By amending the definition of "repair of motor vehicles"
 
18 to read as follows:
 
19      ""Repair of motor vehicles" means all maintenance of and
 
20 modifications and repairs to motor vehicles, including the
 
21 rebuilding or restoring of rebuilt vehicles as defined in section
 
22 286-2, but excluding repairing tires, changing tires, lubricating
 
23 vehicles, installing light bulbs, batteries, windshield wiper
 

 
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 1 blades, and other minor accessories, cleaning, adjusting, and
 
 2 replacing spark plugs, replacing oil and air filters, and other
 
 3 minor services, which the [board] director by rule determines may
 
 4 be performed by persons without the skills and knowledge required
 
 5 of motor vehicle mechanics and helpers.  No service shall be
 
 6 designated as minor, for purposes of this section, if the [board]
 
 7 director finds that performance of the service requires
 
 8 mechanical expertise, has given rise to a high incidence of fraud
 
 9 or deceptive practices, or involves a part of the vehicle
 
10 essential to its safe operation."
 
11      3.  By deleting the definition of "board".
 
12      [""Board" means the motor vehicle repair industry board."]
 
13      SECTION 26.  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 registered under this
 
20 chapter.  The remaining four members shall not be connected with
 
21 the motor vehicle repair industry."]
 
22      SECTION 27.  Section 437B-4, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "437B-4  Powers and duties of [board.] the director.  In
 
 2 addition to any other powers and duties authorized by law, the
 
 3 [board,] director, in accordance with this chapter and chapter 91
 
 4 shall:
 
 5      (1)  Establish such qualifications for the registration of
 
 6           motor vehicle repair dealers and motor vehicle
 
 7           mechanics as may be necessary for the welfare of the
 
 8           public and the motor vehicle repair industry, provided
 
 9           that no person shall be registered as a motor vehicle
 
10           mechanic without first receiving certification as
 
11           provided by this chapter;
 
12      (2)  Inquire into the practices and policies of the motor
 
13           vehicle repair industry and make rules with respect to
 
14           such practices and policies as may be deemed important
 
15           and necessary by the [board] director for the welfare
 
16           of the public and the motor vehicle repair industry;
 
17      (3)  Contract and cooperate with the University of Hawaii in
 
18           developing and administering the certification program
 
19           provided for in this chapter;
 
20      (4)  Adopt, amend, and repeal such rules not inconsistent
 
21           with this chapter, as the [board] director deems
 
22           appropriate for effectuating the purpose of this
 
23           chapter and to ensure the welfare of the public;
 

 
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 1      (5)  Adopt rules pursuant to chapter 91 necessary to
 
 2           implement the provisions of this chapter relating to
 
 3           CFCs; and
 
 4      (6)  Enforce this chapter and rules adopted pursuant
 
 5           thereto."
 
 6      SECTION 28.  Section 437B-7.5, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "437B-7.5  Requirements for licensing of repair dealer;
 
 9 inspection.(a)  Before a motor vehicle repair dealer license is
 
10 granted by the [board,] director, the applicant shall establish
 
11 that the applicant is or employs a full-time motor vehicle
 
12 mechanic licensed with the [board,] director, and has a repair
 
13 facility and the equipment necessary to properly perform work in
 
14 the specialty or area of certification for which licensure is
 
15 requested.
 
16      (b)  The [board] director may inspect an applicant's repair
 
17 facility and equipment prior to licensing, and may conduct
 
18 subsequent inspections of repair facilities to verify continued
 
19 compliance with subsection (a)."
 
20      SECTION 29.  Section 437B-8, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "437B-8  Powers to classify and limit license.(a)  The
 
23 [board] director shall adopt rules necessary to effect the
 

 
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 1 classification of motor vehicle mechanics in a manner consistent
 
 2 with the certification program established by this chapter, and
 
 3 shall limit the motor vehicle repair activities of a licensee to
 
 4 those areas for which the licensee is certified or licensed.
 
 5      (b)  An applicant may make application for [[]licensure[]]
 
 6 in more than one classification if the applicant is certified for
 
 7 each classification and otherwise meets the qualification for
 
 8 [[]licensure[]] as prescribed by the [board.] director.  If the
 
 9 applicant is licensed for more than one classification, the
 
10 applicant shall pay the license fee but shall not be required to
 
11 pay any additional registration fee."
 
12      SECTION 30.  Section 437B-9, Hawaii Revised Statutes, is
 
13 amended by amending subsection (c) to read as follows:
 
14      "(c)  The renewal fee shall be paid to the [board] director
 
15 on or before June 30 of each odd-numbered year.  Failure,
 
16 neglect, or refusal of any licensee to pay the biennial renewal
 
17 fee before the date shall constitute a forfeiture of the license.
 
18 Any license may be restored within one year after the date of
 
19 forfeiture upon compliance with the renewal requirements and upon
 
20 written application and the payment of the required fee plus an
 
21 amount equal to fifty per cent thereof.  Any licensee who fails
 
22 to restore a license within one year from the date of forfeiture
 
23 shall reapply for a license as a new applicant."
 

 
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 1      SECTION 31.  Section 437B-12, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "437B-12  Enforcement.(a)  In addition to any other
 
 4 actions authorized by law, in accordance with chapter 91, the
 
 5 [board] director may fine, suspend, revoke, or refuse to renew
 
 6 the license of a motor vehicle repair dealer or mechanic for any
 
 7 violation of this chapter or rules adopted pursuant thereto.  The
 
 8 [board] director may also order restitution as provided in
 
 9 subsection (c).
 
10      (b)  Any fine that is imposed shall be not less than $100
 
11 nor more than $2,500 for each violation.
 
12      (c)  In lieu of or in addition to the fine imposed under
 
13 this section, the [board] director may require the motor vehicle
 
14 repair dealer or mechanic to make restitution to the customer.
 
15 Restitution may be imposed in lieu of a fine even though the
 
16 amount may exceed the maximum fine set forth in subsection (b).
 
17      (d)  If a motor vehicle repair dealer operates more than one
 
18 motor vehicle repair facility in this State, the [board] director
 
19 pursuant to subsection (a) may only revoke, suspend, or refuse to
 
20 renew the license of the specific motor vehicle repair facility
 
21 that has violated this chapter.  The violation, or the action by
 
22 the [board,] director, shall not affect in any manner the right
 
23 of the motor vehicle repair dealer to operate the dealer's other
 

 
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 1 motor vehicle repair facilities; provided that the [board]
 
 2 director may suspend, revoke, or refuse to renew the license for
 
 3 all motor vehicle repair facilities operated in this State by a
 
 4 motor vehicle repair dealer upon a finding that the motor vehicle
 
 5 repair dealer has, or is, engaged in a course of repeated and
 
 6 wilful violations of this chapter, or rules adopted pursuant
 
 7 thereto.
 
 8      (e)  Each:
 
 9      (1)  Mobile air conditioner serviced without using
 
10           refrigerant recovery and recycling equipment;
 
11      (2)  Motor vehicle or mobile air conditioner serviced after
 
12           January 1, 1994, without successful completion of an
 
13           appropriate training course dealing with the recovery
 
14           and recycling of CFC and HCFC refrigerants; and
 
15      (3)  Violation of chapter 342C; constitutes a separate
 
16           offense for which fines may be imposed under subsection
 
17           (b)."
 
18      SECTION 32.  Section 437B-14, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "[[]437B-14[]]  Return of replaced parts; exceptions.  Upon
 
21 request of the customer at the time the work order is taken, the
 
22 motor vehicle repair dealer, mechanic, or apprentice shall return
 
23 replaced parts to the customer at the time of the completion of
 

 
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 1 the work excepting such parts as may be exempt because of size,
 
 2 weight, or other similar factors from this requirement by rule of
 
 3 the [board] director and excepting such parts as the motor
 
 4 vehicle repair dealer, mechanic, or apprentice is required to
 
 5 return to the manufacturer or distributor under a warranty
 
 6 arrangement.  If the parts must be returned to the manufacturer
 
 7 or distributor, the dealer, mechanic, or apprentice at the time
 
 8 the work order is taken shall offer to show, and upon acceptance
 
 9 of the offer, shall show the parts to the customer upon
 
10 completion of the work, except that the dealer shall not be
 
11 required to show a replaced part when no charge is being made for
 
12 the replacement part."
 
13      SECTION 33.  Section 437B-15, Hawaii Revised Statutes, is
 
14 amended by amending subsection (a) to read as follows:
 
15      "(a)  The motor vehicle repair dealer, mechanic, or
 
16 apprentice shall give the customer a written estimated price for
 
17 labor and parts necessary for a specific job prior to
 
18 commencement of the job.  Such written estimated price need not
 
19 be given if waived in writing by the customer.  No charge in
 
20 excess of fifteen per cent of the estimated price, if the
 
21 estimated price is less than $100, or ten per cent of the
 
22 estimated price, if the estimated price is in excess of $100,
 
23 shall be charged for parts and labor supplied in excess of the
 

 
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 1 estimated price, without the prior written or oral consent of the
 
 2 customer.  Such consent shall be obtained at some time after it
 
 3 is determined that the estimated price is insufficient and before
 
 4 the labor not estimated is performed or the parts not estimated
 
 5 are supplied.  This provision may be waived in writing by the
 
 6 customer, provided that such waiver by its terms shall be
 
 7 effective only after the dealer or mechanic has made reasonable
 
 8 efforts to contact the customer.  The form and content of any
 
 9 waiver shall be as prescribed by rule of the [board.] director.
 
10 Nothing in this section shall be construed as requiring a motor
 
11 vehicle repair dealer, mechanic, or apprentice to give a written
 
12 estimated price if the dealer, mechanic, or apprentice does not
 
13 agree to perform the requested service.  A reasonable fee may be
 
14 charged for making the estimate."
 
15      SECTION 34.  Section 437B-16, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "[[]437B-16[]]  Records required; inspection.  Each motor
 
18 vehicle repair dealer shall maintain such records as are required
 
19 by rules adopted by the [board.] director.  The records shall be
 
20 open for reasonable inspection by the board or other law
 
21 enforcement officials.  All such records shall be maintained for
 
22 at least two years."
 
23      SECTION 35.  Section 437B-17, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "[[]437B-17[]]  Sign required concerning [board;] director;
 
 3 notice to customer.  The [board] director shall design and
 
 4 approve of a sign which shall be placed in all motor vehicle
 
 5 repair dealer locations in a place and manner conspicuous to the
 
 6 public.  Such sign shall give notice that inquiries concerning
 
 7 service may be made to the [board] director and shall contain the
 
 8 telephone number of the [board.] director.  The sign shall also
 
 9 give notice that the customer is entitled to a return of replaced
 
10 parts upon the customer's request therefor at the time the work
 
11 order is taken."
 
12      SECTION 36.  Section 437B-19, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "[[]437B-19[]]  Jurisdiction of circuit court; procedure.
 
15 The circuit court of the judicial circuit in which any person
 
16 carries on, or attempts to carry on, business as a motor vehicle
 
17 repair dealer or acts or holds oneself out as a motor vehicle
 
18 mechanic or motor vehicle mechanic apprentice in violation of
 
19 this chapter, or any rule made pursuant to this chapter, shall on
 
20 application of the [board,] director, issue an injunction or
 
21 other appropriate order restraining such conduct.
 
22      The proceedings under this section shall be governed by the
 
23 Hawaii Rules of Civil Procedure, except that no undertaking shall
 

 
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 1 be required, and the [board] director shall not be required to
 
 2 allege facts necessary to show or tending to show lack of an
 
 3 adequate remedy at law or irreparable injury."
 
 4      SECTION 37.  Section 437B-23, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "437B-23  Certification program.(a)  The [board] director
 
 7 shall contract with the University of Hawaii to develop and
 
 8 administer a certification program for motor vehicle mechanics.
 
 9      (b)  The certification program shall provide for issuing a
 
10 certificate to mechanics generally skilled in the repair of motor
 
11 vehicles and to mechanics who specialize in certain areas of
 
12 motor vehicle repair.  A person may be certified as being
 
13 generally skilled in the repair of motor vehicles, specially
 
14 skilled in one or more areas of motor vehicle repair, or both
 
15 generally and specially skilled.  Each area shall be separately
 
16 tested and certified.  The program shall provide for
 
17 apprenticeship leading to certification as a mechanic.  The
 
18 program may be an apprenticeship program registered with the
 
19 department of labor and industrial relations in accordance with
 
20 chapter 372.  Nothing in this section or chapter shall prevent a
 
21 student in a course leading to certification from repairing motor
 
22 vehicles so long as the student is supervised by a mechanic.
 
23      (c)  The certification test shall be approved by the [board]
 

 
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 1 director and if written, shall be given orally at the request of
 
 2 the person being tested.  Each application for certification
 
 3 shall be accompanied by a nonrefundable examination fee as
 
 4 provided in rules adopted by the department pursuant to chapter
 
 5 91.
 
 6      (d)  There shall be no limit on the number of times a person
 
 7 may apply for certification; provided that any person failing the
 
 8 examination must wait thirty days before retaking the test.
 
 9      (e)  All persons who take and pass the certification test
 
10 shall be awarded a certificate which shall be posted in a
 
11 prominent place at their place of business or employment and a
 
12 patch which may be worn on clothing apparel.  The University of
 
13 Hawaii shall design and procure the certificate and patch."
 
14      SECTION 38.  Section 437B-26, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "437B-26  Bond required to work on salvaged, wrecked, or
 
17 dismantled motor vehicles; forfeiture.(a)  Any motor vehicle
 
18 repair dealer desiring to engage in the business of restoring or
 
19 rebuilding salvaged, wrecked, or dismantled vehicles shall submit
 
20 to the board a performance bond, with corporate surety
 
21 satisfactory to the [board.] director.  The amount of the bond
 
22 shall be not less than $25,000 and the condition of the bond
 
23 shall be the satisfactory rebuilding or restoration of salvaged,
 

 
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 1 wrecked, or dismantled vehicles.
 
 2      (b)  When the [board] director finds that a licensee has
 
 3 wilfully departed from or disregarded accepted practices of
 
 4 workmanship with respect to work performed under section
 
 5 437B-11(11), the [board] director may, in accordance with chapter
 
 6 91, order the forfeiture to the State of the performance bond
 
 7 submitted under subsection (a).
 
 8      (c)  Failure, refusal, or neglect to maintain in full force
 
 9 and effect a bond shall cause the automatic suspension of the
 
10 license effective as of the date of expiration or cancellation of
 
11 the bond.  The license shall not be reinstated until a bond as
 
12 required under this section is received by the [board.] director.
 
13      Failure to effect a reinstatement of a suspended license
 
14 within sixty days of the suspension shall cause the license to be
 
15 terminated, thereby forfeiting all license and biennial renewal
 
16 fees.
 
17      A licensee may, within fifteen calendar days after receipt
 
18 of notification of the license termination, request an
 
19 administrative hearing pursuant to chapter 91 to review the
 
20 termination."
 
21      SECTION 39.  Section 438-1, Hawaii Revised Statutes, is
 
22 amended by deleting the definition of "board".
 
23      [""Board" means the board of barbering and cosmetology as
 

 
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 1 established pursuant to sections 438-3, 438-5, and 438-6."]
 
 2      SECTION 40.  Section 438-3, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["438-3  Board of barbering and cosmetology.(a)  There
 
 5 shall be a state board of barbering and cosmetology consisting of
 
 6 seven members who shall be appointed and may be removed by the
 
 7 governor.  The members shall be residents of the State, of which:
 
 8      (1)  Two members shall be barbers licensed under chapter 438
 
 9           who have been licensed to practice for at least five
 
10           years and have been actively and continuously engaged
 
11           as licensees for that period;
 
12      (2)  Two members shall be beauty operators licensed under
 
13           chapter 439, who have been licensed to practice for at
 
14           least five years and have been actively and
 
15           continuously engaged as licensees for that period; and
 
16      (3)  Three shall be public members.
 
17 Each member shall serve for a term of four years, and until the
 
18 member's successor is appointed and qualified.
 
19      (b)  Board members affiliated with any school teaching any
 
20 of the classified occupations shall disclose that affiliation and
 
21 at all times shall adhere to chapter 84 and the interpretations
 
22 of that chapter by the state ethics commission."]
 
23      SECTION 41.  Section 438-5, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "438-5  Powers and duties of the [board.] director.  (a) In
 
 3 addition to any other powers and duties authorized by law, the
 
 4 [board] director may give examinations for the issuance of
 
 5 licenses to practice barbering and cosmetology; issue apprentice
 
 6 permits or temporary permits; grant, revoke, or suspend licenses,
 
 7 apprentice permits, or temporary permits; and establish, subject
 
 8 to chapter 91 and with the approval of the governor [and the
 
 9 director], rules governing the practice of barbering and
 
10 cosmetology that shall have the force and effect of law.
 
11      (b)  The [board] director may require the attendance of
 
12 witnesses and the production of books, records, and papers as it
 
13 or any person involved may desire at any hearing of any matter
 
14 which the [board] director has authority to investigate, and for
 
15 that purpose may require the [executive secretary to issue] the
 
16 issuance of a subpoena for any witness or a subpoena duces tecum
 
17 to compel the production of any books, records, or papers
 
18 directed to the sheriff or chief of police of the county where
 
19 the witness resides or is found which shall be served and
 
20 returned in the same manner as a subpoena in a criminal case.
 
21 Fees and mileage shall be paid from the funds in the state
 
22 treasury for the use of the [board] director in the same manner
 
23 as other expenses of the [board.] director.
 

 
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 1      (c)  Any investigation, inquiry, or hearing which the
 
 2 [board] director is empowered by law to hold or undertake may be
 
 3 held or undertaken by or before [any member or members of the
 
 4 board] the director or an appointed hearings officer and the
 
 5 finding or order of [that member, members,] the director or
 
 6 hearings officer shall be deemed to be the finding or order of
 
 7 the [board when approved and confirmed by it.] director.
 
 8      (d)  The [board,] director, as prescribed by rules, may
 
 9 recognize the equivalency of barber and hairdresser practices to
 
10 allow training of an apprentice by either licensee in order for
 
11 the apprentice to fulfill training requirements."
 
12      SECTION 42.  Section 438-6, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "438-6  Appeal from actions of the [board.] director.  (a)
 
15 An appeal may be taken from a final action of the [board]
 
16 director suspending or revoking a license, apprentice permit, or
 
17 temporary permit for the causes mentioned in section 438-14 or
 
18 439-19 to the circuit court of the circuit in which the person
 
19 whose license, apprentice permit, or temporary permit has been
 
20 suspended or revoked resides.  The judgment of the circuit court
 
21 may be reviewed by the supreme court.
 
22      (b)  Any person aggrieved by the denial or refusal of a
 
23 license, apprentice permit, or temporary permit by the [board]
 

 
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 1 director shall submit a request for a hearing pursuant to chapter
 
 2 91 within sixty days of the date of notification of the denial or
 
 3 refusal."
 
 4      SECTION 43.  Section 438-7, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "438-7  Applications.(a)  Each person who desires to
 
 7 practice as a barber or as a barber apprentice or to operate a
 
 8 barber shop shall first file with the [board] director a written
 
 9 application on a form prescribed and supplied by the [board,]
 
10 director, deposit with the [board] director the required fees,
 
11 and satisfy the applicable qualification requirements specified
 
12 in this section.
 
13      (b)  An applicant for a barber's license shall:
 
14      (1)  Be at least seventeen years of age;
 
15      (2)  Have a total of fifteen hundred clock hours of barber
 
16           training through the following or a combination
 
17           thereof:
 
18           (A)  As a barber apprentice, holding a barber
 
19                apprentice permit; or
 
20           (B)  As a student enrolled in a school that has a
 
21                barbering curriculum; provided that only classes
 
22                related to barbering shall be applied towards the
 
23                accumulation of clock hours;
 

 
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 1           The [board] director shall adopt rules pursuant to
 
 2           chapter 91 to implement this paragraph; and
 
 3      (3)  Take and pass an examination for licensure.
 
 4      (c)  An applicant for a barber apprentice permit shall:
 
 5      (1)  Be at least seventeen years of age; and
 
 6      (2)  Provide proof that the applicant will be training in a
 
 7           licensed barber shop, or beauty shop under supervision
 
 8           of a licensed barber, or licensed beauty operator with
 
 9           hairdresser qualifications.
 
10      (d)  An applicant for a barber shop license shall:
 
11      (1)  Meet the standards of sanitation required by the
 
12           department of health and as prescribed by the rules of
 
13           the [board;] director;
 
14      (2)  Identify at least one licensed barber at the barber
 
15           shop to qualify the barber shop for licensure;
 
16      (3)  Identify the owner of the barber shop who shall be
 
17           responsible for all operations of the barber shop and
 
18           who shall ensure that only currently licensed barbers,
 
19           barber apprentice permittees, barber temporary
 
20           permittees, or beauty operators, beauty operator
 
21           temporary permittees, or beauty operator apprentice
 
22           permittees practice in the barber shop;
 
23      (4)  Identify the name and location of the barber shop;
 

 
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 1      (5)  Demonstrate that the applicant has adequate equipment
 
 2           and facilities for the practice of barbering as
 
 3           prescribed by the rules of the [board;] director; and
 
 4      (6)  Provide a statement that the applicant shall allow only
 
 5           qualified licensees who have at least one year's
 
 6           experience to train apprentices as prescribed by the
 
 7           rules of the [board.] director.
 
 8      (e)  Any barber applicant who has not obtained licensure
 
 9 after four consecutive examinations offered by the [board]
 
10 director shall be required to apply and train as an apprentice
 
11 barber for six months before qualifying for another series of
 
12 examinations.
 
13      (f)  Any transfer of ownership of a barber shop, change in a
 
14 barber shop name, or relocation of a barber shop shall require
 
15 the filing of a new application for licensure together with the
 
16 required fees.
 
17      (g)  The [board,] director, as prescribed by rules, may
 
18 recognize training obtained under a licensed beauty operator with
 
19 hairdresser qualifications to fulfill the barber training
 
20 requirement."
 
21      SECTION 44.  Section 438-8.5, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "[[]438-8.5[]]  Medical clearance.  The [board,] director,
 

 
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 1 at its discretion may request any barber to submit to such
 
 2 medical clearance tests, including blood tests, as the [board]
 
 3 director deems appropriate to protect the public health."
 
 4      SECTION 45.  Section 438-10, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (a) to read as follows:
 
 6      "(a)  A temporary permit may be issued upon application for
 
 7 examination and payment of the required fees.  The temporary
 
 8 permit shall allow the qualified applicant to practice barbering
 
 9 under the supervision of a licensed barber or beauty operator
 
10 with hairdresser qualifications and shall be effective for the
 
11 period of time covering four consecutive examinations offered by
 
12 the board after the permit's date of issuance.  If the applicant
 
13 has not obtained licensure after four consecutive examinations
 
14 offered by the [board,] director, the applicant shall be required
 
15 to apply and train as an apprentice for six months before
 
16 qualifying for another series of examinations."
 
17      SECTION 46.  Section 438-12, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "438-12  Renewal of licenses.  The holder of a barber or
 
20 barber shop license issued by the [board] director who continues
 
21 in active practice shall biennially, on or before December 31 of
 
22 each odd-numbered year, renew the license and pay the renewal
 
23 fee.  A license that has not been renewed shall be considered
 

 
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 1 forfeited.  A forfeited license may be restored within three
 
 2 years after the date of forfeiture upon compliance with the
 
 3 licensing renewal requirements provided by law and upon written
 
 4 application and payment of all applicable fees; provided that the
 
 5 [board] director may consider restoration beyond this period as
 
 6 prescribed by rules of the [board.] director."
 
 7      SECTION 47.  Section 438-14, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (a) to read as follows:
 
 9      "(a)  In addition to any other actions authorized by law,
 
10 the [board] director may take disciplinary action against any
 
11 person to whom a license, apprentice permit, or temporary permit
 
12 has been issued under this chapter, including but not limited to
 
13 revocation of the license, apprentice permit, or temporary
 
14 permit, suspension, fine, or a combination thereof, or may refuse
 
15 to grant or renew any license, apprentice permit, or temporary
 
16 permit for any cause authorized by law, including but not limited
 
17 to the following:
 
18      (1)  Procuring a license, apprentice permit, or temporary
 
19           permit through fraud, misrepresentation, or deceit;
 
20      (2)  Professional misconduct, gross negligence, or manifest
 
21           incapacity;
 
22      (3)  Permitting a person without a license, apprentice
 
23           permit, or temporary permit to perform activities which
 

 
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 1           require a license, apprentice permit, or temporary
 
 2           permit under this chapter;
 
 3      (4)  Violation of this chapter or the rules adopted pursuant
 
 4           thereto;
 
 5      (5)  Making any false representation or promise through
 
 6           advertising or otherwise;
 
 7      (6)  Failing to display a license, apprentice permit, or
 
 8           temporary permit as provided in this chapter;
 
 9      (7)  Any conduct constituting fraudulent or dishonest
 
10           dealings;
 
11      (8)  Failure to comply with [a board order;] an order of the
 
12           director; or
 
13      (9)  Making a false statement on any document submitted or
 
14           required to be filed by this chapter."
 
15      SECTION 48.  Section 439-1, Hawaii Revised Statutes, is
 
16 amended as follows:
 
17      1.  By amending the definition of "beauty apprentice permit"
 
18 to read as follows:
 
19      ""Beauty apprentice permit" means a permit issued by the
 
20 [board,] director, upon registration and payment of application
 
21 and registration fees, to an apprentice who is under the
 
22 supervision of a licensed beauty operator or licensed barber for
 
23 the hairdresser category."
 

 
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 1      2.  By deleting the definition of "board".
 
 2      ["Board" means the board of barbering and cosmetology
 
 3 pursuant to sections 438-3, 438-5 and 438-6."]
 
 4      3.  By adding a new definition to be appropriately inserted
 
 5 and to read as follows:
 
 6      ""Director" means the director of commerce and consumer
 
 7 affairs."
 
 8      4.  By amending the definition of "temporary permit" to read
 
 9 as follows:
 
10      ""Temporary permit" means a permit allowing a qualified
 
11 applicant to practice as a beauty operator or instructor for a
 
12 period of time covering the three consecutive examinations
 
13 offered by the [board] director after the permit's date of
 
14 issuance."
 
15      SECTION 49.  Section 439-11, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "439-11  Application for examination.  Each person who
 
18 desires to practice or instruct as a beauty operator or
 
19 instructor shall file with the board a written application on a
 
20 form prescribed and supplied by the [board] director and shall
 
21 submit satisfactory proof of the required age and qualifications
 
22 specified in section 439-12 and pay the required application and
 
23 examination fees."
 

 
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 1      SECTION 50.  Section 439-12, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "439-12  Requisites for admission to examination.(a)  The
 
 4 executive secretary on behalf of the [board] director shall
 
 5 determine the sufficiency of the preliminary qualifications of
 
 6 applicants for admission to examinations; provided that the
 
 7 licensure categories shall be limited to cosmetologist,
 
 8 hairdresser, esthetician, nail technician, and instructor.  The
 
 9 preliminary qualifications for admission to examination shall be
 
10 as provided in this section.
 
11      (b)  A cosmetologist applicant shall be at least sixteen
 
12 years old and have an education equivalent to the completion of
 
13 high school and either:
 
14      (1)  Three thousand six hundred hours of training as a
 
15           beauty apprentice in a beauty shop under the
 
16           supervision of a licensed cosmetologist or in a barber
 
17           shop under the supervision of a licensed barber for the
 
18           hairdresser training only; or
 
19      (2)  One thousand eight hundred hours of training in a
 
20           licensed beauty school.
 
21      (c)  A hairdresser applicant shall be at least sixteen years
 
22 old and have an education equivalent to the completion of high
 
23 school and either:
 

 
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 1      (1)  Two thousand five hundred hours of training as a beauty
 
 2           apprentice in a beauty shop or barber shop under the
 
 3           supervision of a licensed cosmetologist or hairdresser
 
 4           or licensed barber for the hairdresser training; or
 
 5      (2)  One thousand two hundred fifty hours of training in a
 
 6           licensed beauty school.
 
 7      (d)  An esthetician applicant shall be at least sixteen
 
 8 years old and have an education equivalent to the completion of
 
 9 high school and either:
 
10      (1)  One thousand two hundred hours of training as a beauty
 
11           apprentice in a beauty shop or barber shop under the
 
12           supervision of a licensed cosmetologist or esthetician;
 
13           or
 
14      (2)  Six hundred hours of training in a licensed beauty
 
15           school.
 
16      (e)  A nail technician applicant shall be at least sixteen
 
17 years old and have an education equivalent to the completion of
 
18 high school and either:
 
19      (1)  Seven hundred hours of training as a beauty apprentice
 
20           in a beauty shop or barber shop under the supervision
 
21           of a licensed cosmetologist, esthetician, or nail
 
22           technician; or
 
23      (2)  Three hundred fifty hours of training in a licensed
 

 
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 1           beauty school.
 
 2      (f)  An instructor applicant may apply to teach in any of
 
 3 the practices of cosmetology if the applicant has:
 
 4      (1)  Completed six hundred hours of a [board] director
 
 5           approved course in the theory and practice of teaching;
 
 6           and
 
 7      (2)  Served actively for a period of at least one year as a
 
 8           licensed beauty operator in the State or in another
 
 9           jurisdiction having standards for beauty operators
 
10           substantially equivalent to those of this State.
 
11      (g)  The [board] director shall recognize beauty training
 
12 obtained in another jurisdiction which is substantially
 
13 equivalent to the training available in this State.  If such
 
14 training is not equivalent, the [board] director shall make a
 
15 determination as to whether or not to recognize the training by
 
16 evaluating the type and duration of the training and the
 
17 experience required to obtain a license in the other
 
18 jurisdiction.
 
19      (h)  The [board,] director, as prescribed by rules, may
 
20 recognize training obtained under a licensed barber to fulfill
 
21 the hairdresser training requirement."
 
22      SECTION 51.  Section 439-12.5, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "[[]439-12.5[]]  Medical clearance.  The [board,] director,
 
 2 at its discretion, may require any operator to submit to such
 
 3 medical clearance tests, including blood tests, as the [board]
 
 4 director deems appropriate to protect the public health."
 
 5      SECTION 52.  Section 439-13, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "439-13  Admission to examination.  If the [board] director
 
 8 finds that the applicant has met the qualifications necessary for
 
 9 admission to the examination, the [board] director shall admit
 
10 the applicant to examination."
 
11      SECTION 53.  Section 439-14, Hawaii Revised Statutes, is
 
12 amended by amending subsections (a) and (b) to read as follows:
 
13      "(a)  The [board] director shall contract with a
 
14 professional testing service to have the testing service prepare
 
15 and provide examinations for applicants as may be required for
 
16 the purposes of this chapter.  The examinations shall not be
 
17 confined to any specific system or method, and the examinations
 
18 shall be consistent with the practical and theoretical
 
19 requirements of the occupations as provided by this chapter.  The
 
20 examinations shall be given on a regular basis or whenever is
 
21 appropriate, and be updated and revised based on the current job
 
22 analysis surveys and other data and information relevant to the
 
23 practice of cosmetology.
 

 
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 1      (b)  Every applicant who is required by the [board] director
 
 2 to be examined shall pay an examination fee as provided in rules
 
 3 adopted by the director pursuant to chapter 91.  The examination
 
 4 fee may be paid directly to the professional testing service by
 
 5 the director or the examinee or deposited with the director of
 
 6 commerce and consumer affairs to the credit of the compliance
 
 7 resolution fund established pursuant to section 26-9(o)."
 
 8      SECTION 54.  Section 439-15, Hawaii Revised Statutes, is
 
 9 amended by amending subsections (a), (b), and (c) to read as
 
10 follows:
 
11      "(a)  The [board] director shall issue a license as a beauty
 
12 operator, or instructor, as the case may be, to each person who
 
13 passes the required examination, pays the proper fees, and meets
 
14 all of the other requirements of this chapter.  The license shall
 
15 state specifically the licensure category for which the person is
 
16 licensed [and shall be signed by the chairperson and executive
 
17 secretary and impressed with the seal of the board].
 
18      (b)  All licenses issued by the [board] director shall
 
19 expire on December 31 of each odd-numbered year.
 
20      (c)  Every licensed beauty operator and instructor shall pay
 
21 to the [board] director by December 31 of each odd-numbered year
 
22 a biennial renewal fee.  The payment of the renewal fee shall
 
23 entitle the licensee to renewal of the license."
 

 
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 1      SECTION 55.  Section 439-16, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "439-16  Temporary permits.  The [board] director may issue
 
 4 a temporary permit to a qualified applicant approved for
 
 5 examination.  A temporary permit may be issued upon application
 
 6 for examination and payment of the required fees.  The temporary
 
 7 permit shall allow the qualified applicant to practice or teach
 
 8 cosmetology under the supervision of a licensed beauty operator
 
 9 or licensed instructor, and shall be effective for the period of
 
10 time covering the three consecutive examinations offered by the
 
11 [board] director after the permit's date of issuance.  An
 
12 applicant who fails to pass the third examination but who
 
13 satisfies the requirements of section 439-14(c) shall continue to
 
14 qualify for examination and licensure but not for the privilege
 
15 of a temporary permit."
 
16      SECTION 56.  Section 439-17, Hawaii Revised Statutes, is
 
17 amended by amending subsections (f) and (g) to read as follows:
 
18      "(f)  The beauty shop shall maintain records of appointments
 
19 and services offered to clients, as prescribed by the rules of
 
20 the [board,] director, for a period of three years.
 
21      (g)  All beauty shops shall have equipment and facilities as
 
22 prescribed by the rules of the [board.] director."
 
23      SECTION 57.  Section 439-18, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "439-18  Schools.(a)  Any person may apply to the [board]
 
 3 director for a license as a school in the practice of
 
 4 cosmetology, upon the payment of application and initial license
 
 5 fees.  Thereafter an annual license fee shall be based on student
 
 6 enrollment.
 
 7      (b)  No school shall be granted a license unless it employs
 
 8 and maintains a sufficient number of licensed instructors, and
 
 9 requires a course of training of a proportioned number of hours
 
10 as approved by the [board,] director, for any of the licensure
 
11 categories, to include both practical demonstrations, written and
 
12 oral tests, and practical instruction in sanitation,
 
13 sterilization, and the use of antiseptics consistent with the
 
14 practical and theoretical requirements applicable to the practice
 
15 of cosmetology.
 
16      (c)  All licenses shall expire on December 31 following the
 
17 date of issue, but may be renewed by payment of the annual
 
18 license fee prior to the date of expiration.  A lapsed license
 
19 may be restored upon the payment of all delinquent fees and a
 
20 penalty fee.
 
21      (d)  All schools shall have sufficient equipment and
 
22 adequate facilities as prescribed by the rules of the [board.]
 
23 director."
 

 
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 1      SECTION 58.  Section 439-19, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  In addition to any other actions authorized by law,
 
 4 the [board] director may take disciplinary action against any
 
 5 license issued under this chapter, including but not limited to
 
 6 revocation, suspension, fine, or a combination thereof, or refuse
 
 7 to grant or renew any license for any cause authorized by law,
 
 8 including but not limited to the following:
 
 9      (1)  Procuring a license through fraud, misrepresentation,
 
10           or deceit;
 
11      (2)  Professional misconduct, gross carelessness, or
 
12           manifest incapacity;
 
13      (3)  Permitting an unlicensed person to perform activities
 
14           which require a license under this chapter;
 
15      (4)  Violation of this chapter or the rules adopted pursuant
 
16           thereto;
 
17      (5)  Making any false representation or promise through
 
18           advertising or otherwise;
 
19      (6)  Failing to display the license as provided in this
 
20           chapter;
 
21      (7)  Any other conduct constituting fraudulent or dishonest
 
22           dealings;
 
23      (8)  Failing to comply with [a board order;] an order by the
 

 
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 1           director; or
 
 2      (9)  Making a false statement on any document submitted or
 
 3           required to be filed by this chapter."
 
 4      SECTION 59.  Section 439-20, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "439-20  Hearing.  In all proceedings before it, the [board
 
 7 and each member thereof] director shall have the same powers
 
 8 respecting administering oaths, compelling the attendance of
 
 9 witnesses, and the production of documentary evidence, and
 
10 examining witnesses, as are possessed by circuit courts.  In case
 
11 of disobedience by any person of any order of the [board or any
 
12 member thereof,] director, or of any subpoena issued by [it or
 
13 any member,] the director, or the refusal of any witness to
 
14 testify to any matter regarding which the witness may lawfully be
 
15 questioned, any circuit judge, on application by the [board or
 
16 any member thereof,] director, shall compel obedience as in the
 
17 case of disobedience of the requirements of a subpoena issued by
 
18 a circuit court, or a refusal to testify therein."
 
19      SECTION 60.  Section 439-21, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "439-21  [Board] Director to aid prosecution.  The [board]
 
22 director shall aid prosecuting officers in the prosecution of
 
23 persons charged with violations of this chapter."
 

 
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 1      SECTION 61.  Section 447-1, Hawaii Revised Statutes, is
 
 2 amended by amending subsections (a), (b), and (c) to read as
 
 3 follows:
 
 4      "(a)  Any person:
 
 5      (1)  Eighteen years of age or over;
 
 6      (2)  Holding and having a diploma or proper certificate of
 
 7           graduation from a dental hygiene school accredited by
 
 8           the American Dental Association (A.D.A.) Commission on
 
 9           Dental Accreditation requiring at least a two year
 
10           course, recognized by the [board of dental examiners;]
 
11           director of commerce and consumer affairs; and
 
12      (3)  Having been officially certified in the administration
 
13           of intra-oral infiltration local anesthesia and block
 
14           anesthesia by an accredited dental hygiene school or by
 
15           a certification program previously approved by the
 
16           [board;] director;
 
17 upon written application made to and filed with the [board]
 
18 director at least sixty days prior to the date selected by the
 
19 [board] director for the examination, may be examined by the
 
20 [board] director for qualification as a dental hygienist.
 
21      The application for examination shall be accompanied by the
 
22 applicant's certificate of graduation from an accredited dental
 
23 hygiene school together with documentary proof of the applicant's
 

 
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 1 certification in the administration of intra-oral infiltration
 
 2 local anesthesia and block anesthesia.  At the time of filing the
 
 3 application, the applicant shall pay to the [board] director
 
 4 application and examination fees, which fees, together with all
 
 5 other fees or charges in this chapter, shall be as provided in
 
 6 rules adopted by the director [of commerce and consumer affairs]
 
 7 pursuant to chapter 91, and shall be deposited to the credit of
 
 8 the compliance resolution fund established pursuant to section
 
 9 26-9(o).
 
10      (b)  Two examinations shall be held in each year at the time
 
11 the [board] director designates.  The examinations shall cover
 
12 subjects considered essential by the [board] director for a
 
13 dental hygienist and shall likewise include a practical
 
14 examination on the removal of deposits or stains from the
 
15 surfaces of the teeth.  The [board] director shall furnish a
 
16 chair and engine, but the applicant shall supply all necessary
 
17 instruments, materials, and patients for the examination.
 
18      (c)  If the applicant successfully passes the examination,
 
19 the applicant shall be registered and receive a certificate of
 
20 ability to practice as a dental hygienist in the State.  Every
 
21 registered dental hygienist, before entering practice, shall pay
 
22 the [board] director a registration fee.  On or before December
 
23 31 of each odd-numbered year, every registered dental hygienist
 

 
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 1 desiring to begin or continue to practice in the State shall pay
 
 2 to the [board] director a fee for the biennial registration
 
 3 thereof.  The failure, neglect, or refusal of any duly licensed
 
 4 dental hygienist to pay the biennial registration fee shall
 
 5 constitute a forfeiture of the license, but the license may be
 
 6 restored upon written application therefor and payment to the
 
 7 [board] director of a restoration fee."
 
 8      SECTION 62.  Section 447-2, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "447-2  Temporary license.  The [board of dental examiners]
 
11 director of commerce and consumer affairs may issue, without
 
12 examination, to any person qualified to be examined, a temporary
 
13 license to practice as a dental hygienist in the employment of
 
14 the State or any county or any legally incorporated eleemosynary
 
15 dispensary or infirmary, private school, or welfare center.  The
 
16 temporary license shall authorize the person to whom the license
 
17 is issued to practice clinical dental hygiene exclusively while
 
18 engaged in that employment and shall be in force until:
 
19      (1)  The date the person leaves the employment authorized
 
20           under the temporary license;
 
21      (2)  The three hundred sixty-fifth calendar day following
 
22           the date of issuance of the temporary license;
 
23      (3)  The date on which the person takes the licensure
 

 
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 1           examination under this chapter; or
 
 2      (4)  The date on which the [board] director revokes the
 
 3           temporary license;
 
 4 whichever occurs first; provided that the [board] director may
 
 5 revoke the temporary license at any time for cause."
 
 6      SECTION 63.  Section 447-3, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  Clinical dental hygiene may be practiced by a licensed
 
 9 dental hygienist.  The practice of clinical dental hygiene is
 
10 defined as the removal of hard and soft deposits and stains from
 
11 the portion of the crown and root surfaces to the depth of the
 
12 gingival sulcus, polishing natural and restored surfaces of
 
13 teeth, the application of preventive chemical agents to the
 
14 coronal surfaces of teeth, which chemical agents have been
 
15 approved by the [board of dental examiners,] director of commerce
 
16 and consumer affairs, and the use of mouth washes as are approved
 
17 by the [board,] director, but shall not include the performing of
 
18 any repair work or the preparation thereof, or any other
 
19 operation on the teeth or tissues of the mouth; provided that
 
20 nothing herein shall prohibit a dental hygienist from using or
 
21 applying topically any chemical agent which has been approved in
 
22 writing by the department of health for any of the purposes set
 
23 forth in part V of chapter 321, and other procedures delegated by
 

 
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 1 the dentist in accordance with the rules of the [board of dental
 
 2 examiners.] director.
 
 3      In addition, a licensed dental hygienist may administer
 
 4 intra-oral local anesthesia and block anesthesia under the direct
 
 5 supervision of a dentist upon providing documentary proof
 
 6 satisfactory to the [board] director of certification in the
 
 7 administration of these procedures."
 
 8      SECTION 64.  Section 447-4, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "447-4  Revocation of dentist's license.  The [board of
 
11 dental examiners] director of commerce and consumer affairs may
 
12 revoke the license of any dentist who permits any dental
 
13 hygienist employed by or working under the dentist's supervision
 
14 to perform any dental operation other than that permitted under
 
15 this chapter."
 
16      SECTION 65.  Section 447-6, Hawaii Revised Statutes, is
 
17 amended by amending subsection (a) to read as follows:
 
18      "(a)  In addition to any other actions authorized by law,
 
19 the [board of dental examiners] director of commerce and consumer
 
20 affairs may suspend or revoke any license issued under this
 
21 chapter or fine a licensee for any cause authorized by law,
 
22 including but not limited to the following:
 
23      (1)  Professional misbehavior; or
 

 
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 1      (2)  Any other violation of this chapter or rules adopted
 
 2           pursuant thereto."
 
 3      SECTION 66.  Section 447-7, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "447-7  Filing of false information; revocation of license.
 
 6 The [board of dental examiners] director of commerce and consumer
 
 7 affairs shall refuse to grant a license to any applicant or shall
 
 8 revoke the license of any person who knowingly records,
 
 9 registers, or files, or offers for recordation, registration, or
 
10 filing with the department of commerce and consumer affairs any
 
11 written statement which has been falsely made, completed, or
 
12 altered, or in which a false entry has been made, or which
 
13 contains a false statement or false information."
 
14      SECTION 67.  Section 448-1.5, Hawaii Revised Statutes, is
 
15 amended by amending subsection (b) to read as follows:
 
16      "(b)  The [board of dental examiners,] director of commerce
 
17 and consumer affairs, by rule adopted pursuant to chapter 91,
 
18 shall establish minimum specifications for the lead apron;
 
19 provided that the lead apron shall protect the patient's body
 
20 from unnecessary exposure to x-rays yet not unduly discomfort the
 
21 patient."
 
22      SECTION 68.  Section 448-2, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "448-2  Practice without license prohibited.  No person
 
 2 shall practice dentistry or dental surgery in the State, either
 
 3 gratuitously or for pay, or shall offer to so practice or shall
 
 4 advertise or announce oneself, either publicly or privately, as
 
 5 prepared or qualified to so practice, or append the letters
 
 6 "D.D.S.", "D.M.D.", "Dr.", "L.D.S.", or any other dental degree
 
 7 to the person's name with intent thereby to imply that the person
 
 8 is a practitioner of dentistry or a dental surgeon, without
 
 9 having a valid, unrevoked license from the [board of dental
 
10 examiners.] director of commerce and consumer affairs."
 
11      SECTION 69.  Section 448-3, Hawaii Revised Statutes, is
 
12 amended by amending subsection (b) to read as follows:
 
13      "(b)  A duly licensed and registered dentist may employ
 
14 auxiliary personnel, other than registered dental hygienists, to
 
15 assist the dentist in the practice of dentistry.  These employees
 
16 shall be known as dental assistants and shall perform all duties
 
17 assigned to them under the supervision, direction and
 
18 responsibility of the dentist.  Duties of the dental assistant
 
19 and regulatory directives shall be delineated under rules which
 
20 the [board of dental examiners] director of commerce and consumer
 
21 affairs may from time to time adopt."
 
22      SECTION 70.  Section 448-5, Hawaii Revised Statutes, is
 
23 repealed.
 

 
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 1      ["448-5  Board of examiners; appointment.  The board of
 
 2 dental examiners shall consist of twelve members, eight of whom
 
 3 shall be practicing dentists who have been engaged in the
 
 4 practice of dentistry for a period of five years preceding their
 
 5 several appointments, two of whom shall be practicing dental
 
 6 hygienists, duly licensed under section 447-1, who have been
 
 7 engaged in the practice of dental hygiene in the State for a
 
 8 period of five years preceding appointment, and two of whom shall
 
 9 be public members.  No member shall be in any way connected with,
 
10 or interested financially in, any dental supply company.  One
 
11 member in the practice of dentistry shall be appointed from each
 
12 of the counties of Hawaii, Maui, and Kauai and five members in
 
13 the practice of dentistry shall be appointed from the city and
 
14 county of Honolulu.  As used in this chapter, "board" means the
 
15 board of dental examiners."]
 
16      SECTION 71.  Section 448-6, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "448-6  Powers and duties[, meetings.] of the director.
 
19 (a)  [The board shall meet for the purpose of examining
 
20 applicants and for other purposes at such times as it
 
21 designates.]  Adequate notice of the times and places of
 
22 examinations shall be given[.  The board may prescribe which
 
23 members shall participate in the examination and licensing
 

 
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 1 procedures.] by the director of commerce and consumer affairs.
 
 2      (b)  In addition to any other powers and duties authorized
 
 3 by law, the [board] director shall adopt such rules as [it] the
 
 4 director deems proper and necessary for the performance of [its]
 
 5 the director's work."
 
 6      (c)  The director shall establish an advisory committee,
 
 7 consisting of three currently licensed dentists, to serve as
 
 8 consultants to the director in the review, revision, and
 
 9 implementation of the dental licensure examination to ensure the
 
10 exam's validity, fairness, and defensibility, and to recommend to
 
11 the director suitable remedies for candidates when there is
 
12 evidence of substantial disadvantage during the examination
 
13 process.  The director shall also establish a separate advisory
 
14 committee, consisting of three currently licensed dental
 
15 hygienists, to perform the same aforementioned functions with
 
16 regard to the dental hygienist licensure examination.  Advisory
 
17 committee members shall be covered by the provisions of 26-9(s),
 
18 HRS.
 
19      SECTION 72.  Section 448-7, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "448-7  Fees.  Every applicant qualified for registration
 
22 shall pay a license fee before entering practice.  Every person
 
23 holding a license to practice dentistry in the State shall pay to
 

 
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 1 the [board] director of commerce and consumer affairs on or
 
 2 before December 31 of each odd-numbered year, a biennial
 
 3 registration fee.  The failure, neglect, or refusal of any duly
 
 4 licensed dentist or doctor of dental surgery to pay the biennial
 
 5 fee during the time the license remains in force, shall
 
 6 constitute a forfeiture of the license.  The license may be
 
 7 restored upon written application therefor and the payment to the
 
 8 [board of dental examiners] director of the appropriate fee."
 
 9      SECTION 73.  Section 448-9, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "448-9  Application for examination for graduates of dental
 
12 colleges accredited by the American Dental Association.  Any
 
13 person of eighteen years or more shall be eligible to take an
 
14 examination before the [board] director of commerce and consumer
 
15 affairs upon submission of:
 
16      (1)  An application on a form prescribed by the [board]
 
17           director to the [executive secretary of the board]
 
18           director not later than sixty days prior to the date of
 
19           the scheduled examination;
 
20      (2)  Application and examination fees; and
 
21      (3)  Documentation and credentials that shall include but
 
22           are not limited to the following:
 
23           (A)  A diploma or certificate of graduation from a
 

 
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 1                dental college accredited by the Council of Dental
 
 2                Education of the American Dental Association,
 
 3                recognized and approved by the [board;] director;
 
 4                and
 
 5           (B)  A certificate or other evidence satisfactory to
 
 6                the [board] director of having passed parts I and
 
 7                II of the examination of the National Board of
 
 8                Dental Examiners."
 
 9      SECTION 74.  Section 448-9.5, Hawaii Revised Statutes, is
 
10 amended as follows:
 
11      1.  By amending subsection (a) to read as follows:
 
12      "(a)  Any person of eighteen years or more, who is a
 
13 graduate of a foreign dental school not accredited by the
 
14 American Dental Association and a permanent resident of the
 
15 United States shall be eligible to take an examination before the
 
16 [board] director of commerce and consumer affairs upon submission
 
17 of:
 
18      (1)  An application on a form prescribed by the [board]
 
19           director to the [executive secretary of the board]
 
20           director not later than sixty days prior to the date of
 
21           the scheduled examination;
 
22      (2)  Application and examination fees; and
 
23      (3)  Documentation and credentials that shall include but
 

 
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 1           are not limited to the following:
 
 2           (A)  A complete transcript of the academic and clinical
 
 3                dental school record of the applicant,
 
 4                authenticated by either the president, secretary,
 
 5                dean, or registrar of the educational institution;
 
 6           (B)  A legible, true copy of the dental diploma or
 
 7                dental degree conferred upon the applicant as
 
 8                evidence of the completion of the courses of
 
 9                dental instruction required for graduation,
 
10                authenticated by either the president, secretary,
 
11                dean, or registrar of the educational institution;
 
12           (C)  Certification by the licensing authority of the
 
13                governmental jurisdiction, wherein is located the
 
14                foreign institution from which the applicant was
 
15                graduated that the applicant has been admitted or
 
16                licensed to practice dentistry in that foreign
 
17                state, country, or political subdivision;
 
18           (D)  A certificate or other evidence satisfactory to
 
19                the [board] director of having passed parts I and
 
20                II of the examination of the National Board of
 
21                Dental Examiners; and
 
22           (E)  Other documentation and credentials as may be
 
23                required by the [board.] director."
 

 
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 1      2.  By amending subsection (c) to read as follows:
 
 2      "(c)  When, because of circumstances beyond the applicant's
 
 3 control, an applicant is unable to furnish any of the documents,
 
 4 authentication, or certification required by this section, the
 
 5 [board] director may in [its] the director's discretion accept
 
 6 other documents which [it] the director deems satisfactory to
 
 7 establish the applicant's eligibility."
 
 8      SECTION 75.  Section 448-10, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "448-10  Examination; time.(a)  The [board] director of
 
11 commerce and consumer affairs shall require all applicants to
 
12 take the state written and practical examination on dentistry. In
 
13 administering the examination the State shall consider current
 
14 trends in dental education.  The requirements for the examination
 
15 in operative and laboratory dentistry shall be decided by the
 
16 [board] director and mailed to each applicant.  All instruments,
 
17 materials, and patients shall be supplied by the applicant.  Two
 
18 examinations shall be held each year.
 
19      (b)  The [board] director shall establish and administer a
 
20 restorative technique examination to all qualified applicants
 
21 under section 448-9.5.  In administering the examination the
 
22 State shall consider current trends in dental education.  No
 
23 applicant shall be permitted to take the practical examination
 

 
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 1 under subsection (a) unless the applicant has passed the
 
 2 restorative technique examination."
 
 3      SECTION 76.  Section 448-11, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "448-11  Investigations and hearings.  The [board of dental
 
 6 examiners, or its duly authorized representative,] director of
 
 7 commerce and consumer affairs may inquire of any applicant for
 
 8 examination concerning the applicant's character, qualifications,
 
 9 or experience and may conduct investigations and hearings in
 
10 order to secure further information concerning the character,
 
11 qualifications, or experience of any such applicant."
 
12      SECTION 77.  Section 448-12, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "448-12  Temporary license.(a)  The [board of dental
 
15 examiners] director of commerce and consumer affairs may issue
 
16 without examination to any resident or nonresident otherwise
 
17 qualified to be examined a temporary license to practice
 
18 dentistry in the employment of the State or any county, or any
 
19 legally incorporated eleemosynary dispensary or infirmary,
 
20 private school, or welfare center.  The temporary license shall
 
21 authorize the person to whom the license is issued to practice
 
22 dentistry exclusively while engaged in that employment and shall
 
23 be in force until the earliest of the following occurs:
 

 
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 1      (1)  The date the person leaves the employment authorized
 
 2           under the temporary license;
 
 3      (2)  The three hundred ninety-sixth calendar day following
 
 4           the date of issuance of the temporary license;
 
 5      (3)  The date on which the results of the licensure
 
 6           examination taken by the person under this chapter are
 
 7           posted by the [board;] director; or                    
 
 8      (4)  The date on which the [board] director revokes the
 
 9           temporary license;
 
10 provided that the [board] director may revoke the temporary
 
11 license at any time for cause.
 
12      No person who has failed an examination shall have the
 
13 benefit of any temporary license.
 
14      (b)  The [board of dental examiners] director may issue
 
15 without examination to any resident or nonresident licensed in
 
16 another state and otherwise qualified to be examined a temporary
 
17 license to practice dentistry while in the employment of the
 
18 department of health to provide dental services to Hansen's
 
19 disease sufferers.  The temporary license shall be valid for a
 
20 period of three years or until the first [board] examination
 
21 after the conclusion of the three-year period and only while the
 
22 person to whom the temporary license is issued is in the
 
23 employment of the department of health and works under the
 

 
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 1 general direction and supervision of a duly licensed dentist. The
 
 2 temporary license shall not be renewed and shall be reviewed
 
 3 annually by the [board of dental examiners] director for
 
 4 continuance and shall be subject to revocation and suspension as
 
 5 provided in section 448-17.  The temporary licensee shall not be
 
 6 eligible for examination by the [board of dental examiners]
 
 7 director while the temporary license is in effect."
 
 8      SECTION 78.  Section 448-13, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "448-13  Certificate, evidence.  All certificates of
 
11 license issued by the [board of dental examiners] director of
 
12 commerce and consumer affairs shall be [signed by the
 
13 chairperson, sealed, and shall be] presumptive evidence of the
 
14 right of the holder to practice dentistry.  No person shall
 
15 practice dentistry without first having procured such a
 
16 certificate, except as provided in this chapter.  Any person
 
17 practicing dentistry and not having at the time a valid and
 
18 uncanceled license shall be guilty of a failure to comply with
 
19 this chapter and shall be punished as in this chapter provided."
 
20      SECTION 79.  Section 448-16, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "448-16  Duty to furnish names, etc.  Every person or
 
23 association practicing dentistry in the State shall, upon demand
 

 
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 1 in writing by the [secretary of the board of dental examiners,]
 
 2 director of commerce and consumer affairs, furnish within fifteen
 
 3 days after such demand, to the [board, through its secretary,]
 
 4 director, a true statement of the name and address of each person
 
 5 practicing dentistry or assisting in the practice thereof, in the
 
 6 office of such person or association, together with a statement
 
 7 showing under what license or authority the person or association
 
 8 is practicing.  Any person or association failing so to do, or
 
 9 making any false statement concerning or touching anything
 
10 covered by this section shall be guilty of a failure to comply
 
11 with this chapter and shall be punished as in this chapter
 
12 provided."
 
13      SECTION 80.  Section 448-17, Hawaii Revised Statutes, is
 
14 amended by amending subsection (a) to read as follows:
 
15      "(a)  The [board] director of commerce and consumer affairs
 
16 shall refuse to issue a license to any applicant who fails to
 
17 meet all of the requirements imposed by this chapter and may
 
18 refuse to issue a license to any applicant who has previously
 
19 committed any act which would, if committed by a licensee, result
 
20 in the revocation or suspension of the license.
 
21      In addition to any other actions authorized by law, the
 
22 [board] director may suspend or revoke any license issued under
 
23 this chapter and may fine a licensee for any cause authorized by
 

 
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 1 law, including but not limited to the following:
 
 2      (1)  Fraud in procuring license;
 
 3      (2)  Habitual intoxication or addiction to the use of drugs;
 
 4      (3)  Wilful or repeated violations of the rules of the
 
 5           department of health;
 
 6      (4)  Acceptance of a fee for service as a witness, without
 
 7           the knowledge of the court, in addition to the fee
 
 8           allowed by the court;
 
 9      (5)  Division of fees or agreeing to split or divide the
 
10           fees received for dental services with any person for
 
11           bringing or referring a patient;
 
12      (6)  Assisting in the care or treatment of a patient,
 
13           without the knowledge of the patient or the patient's
 
14           legal representative;
 
15      (7)  Employing, procuring, inducing, aiding, or abetting a
 
16           person not licensed or registered as a dentist to
 
17           engage in the practice of dentistry;
 
18      (8)  Making any misrepresentations or false promises,
 
19           directly or indirectly, to influence, persuade, or
 
20           induce dental patronage;
 
21      (9)  Professional connection or association with, or lending
 
22           one's name to another for, the illegal practice of
 
23           dentistry by another, or professional connection or
 

 
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 1           association with any person, firm, or corporation
 
 2           holding oneself, themselves, or itself out in any
 
 3           manner contrary to this chapter;
 
 4     (10)  By false or fraudulent representations, obtaining or
 
 5           seeking to obtain practice or money or any other thing
 
 6           of value;
 
 7     (11)  Practicing, either in the State or elsewhere, under a
 
 8           name other than one's own;
 
 9     (12)  Any other improper, unprofessional, or dishonorable
 
10           conduct in the practice of dentistry; and
 
11     (13)  Violation of section 447-4."
 
12      SECTION 81.  Section 448-18, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "448-18  Hearings.  In all proceedings before [it,] the
 
15 director of commerce and consumer affairs, the [board and each
 
16 member thereof] director shall have the same powers respecting
 
17 administering oaths, compelling the attendance of witnesses, and
 
18 the production of documentary evidence, and examining witnesses
 
19 as are possessed by circuit courts.  In case of disobedience by
 
20 any person of any order of the [board or of a member thereof,]
 
21 director, or of any subpoena issued by [it or a member,] the
 
22 director, or the refusal of any witness to testify to any matter
 
23 regarding which the witness may be questioned lawfully, any
 

 
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 1 circuit judge, on application by the [board or a member thereof,]
 
 2 director, shall compel obedience as in the case of disobedience
 
 3 of the requirements of a subpoena issued by a circuit court, or a
 
 4 refusal to testify therein."
 
 5      SECTION 82.  Section 448-22, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "448-22  Prosecuting officers, duty.  On notice from [any
 
 8 member of the board of dental examiners,] the director of
 
 9 commerce and consumer affairs, the several prosecuting officers
 
10 of the State shall institute prosecutions for offenses under this
 
11 chapter."
 
12      SECTION 83.  Section 448-23, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "[[]448-23[]]  Filing of false information; revocation of
 
15 license.  The [board of dental examiners] director of commerce
 
16 and consumer affairs shall refuse to grant a license to any
 
17 applicant or shall revoke the license of any person who knowingly
 
18 records, registers, or files, or offers for recordation,
 
19 registration, or filing with the department of commerce and
 
20 consumer affairs, any written statement which has been falsely
 
21 made, completed, or altered, or in which a false entry has been
 
22 made, or which contains a false statement or false information."
 
23      SECTION 84.  Section 448H-1, Hawaii Revised Statutes, is
 

 
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 1 amended as follows:
 
 2      1.  By adding the definition of "director" to be
 
 3 appropriately inserted and to read as follows:
 
 4      ""Director" means the director of commerce and consumer
 
 5 affairs."
 
 6      2.  By deleting the definition of "board".
 
 7      [""Board" means the elevator mechanics licensing board
 
 8 created by this chapter."]
 
 9      SECTION 85.  Section 448H-3, Hawaii Revised Statutes, is
 
10 repealed.
 
11      ["448H-3  Elevator mechanics licensing board; appointment;
 
12 organization.  There is created an elevator mechanics licensing
 
13 board within the department of commerce and consumer affairs for
 
14 administrative purposes.  The board shall consist of seven
 
15 members:  four shall be licensed elevator mechanics, two shall be
 
16 public members not connected or associated with the elevator or
 
17 building industry, and one shall be the director of labor and
 
18 industrial relations or the director's designee who is an
 
19 employee of the department of labor and industrial relations and
 
20 has expertise in elevator and escalator installation and
 
21 maintenance."]
 
22      SECTION 86.  Section 448H-4, Hawaii Revised Statutes, is
 
23 repealed.
 

 
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 1      ["448H-4  Meetings.  The board shall meet not less than
 
 2 twice a year at a time and place as determined by the board.  The
 
 3 board shall also meet but not later than thirty days prior to the
 
 4 licensing examination pursuant to section 448H-5(2) in order to
 
 5 evaluate applications therefor.  Any board member who misses two
 
 6 consecutive meetings of the board or fifty per cent of the
 
 7 meetings in a year shall be removed from the board."]
 
 8      SECTION 87.  Section 448H-5, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "448H-5  Powers and duties of the [board.] director.  In
 
11 addition to any other powers and duties authorized by law, the
 
12 [board] director shall:
 
13      (1)  Adopt rules in accordance with chapter 91 to carry out
 
14           the purposes of this chapter;
 
15      (2)  Develop, apply, review and upgrade appropriate
 
16           techniques, including examinations and investigations
 
17           for determining whether a person meets the requirements
 
18           of this chapter and standards to insure that elevator
 
19           mechanics will be persons qualified to serve as such;
 
20      (3)  Prescribe, at a minimum, that a nationally recognized
 
21           examination, augmented with locally developed material,
 
22           be used in testing for licensure, the passing grade for
 
23           the examination to be not less than seventy per cent;
 

 
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 1      (4)  Issue licenses to persons determined, after application
 
 2           of those techniques, to have met the required
 
 3           qualifications and revoke or suspend licenses,
 
 4           previously issued by the [board] director pursuant to
 
 5           hearings held in accordance with chapter 91, in any
 
 6           case where the individual holding any license is
 
 7           determined substantially to have failed to conform to
 
 8           the required qualifications, this chapter, or the rules
 
 9           of the [board;] director;
 
10      (5)  Establish and carry out procedures designed to insure
 
11           that persons licensed as elevator mechanics will,
 
12           during any period they serve as such, comply with the
 
13           requirements of this chapter, the rules of the [board,]
 
14           director, and chapter 397 and rules adopted thereunder;
 
15      (6)  Receive, investigate, and take appropriate action with
 
16           respect to, any charge or complaint filed with the
 
17           [board] director to the effect that any individual
 
18           licensed as an elevator mechanic has failed to comply
 
19           with the requirements of this chapter regarding any
 
20           complaint regarding job performance by mechanics, the
 
21           rules of the [board,] director, or chapter 397 and the
 
22           rules adopted thereunder;
 
23      (7)  Register apprentice elevator mechanics;
 

 
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 1      (8)  Maintain a record of [its] the director's proceedings;
 
 2      (9)  Assist and advise the department of labor and
 
 3           industrial relations in the adoption of rules relating
 
 4           to the conditions of work for elevator mechanics
 
 5           including requirements related to equipment or
 
 6           facilities essential for the safe installation, repair,
 
 7           maintenance, or alteration of any elevator, dumbwaiter,
 
 8           escalator, moving walk or ramp, and lift; and
 
 9     (10)  Notify the department of labor and industrial relations
 
10           of any fact or situation that, in the opinion of the
 
11           [board,] director, constitutes a violation of chapter
 
12           397 or of any rule adopted thereunder."
 
13      SECTION 88.  Section 448H-6, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "448H-6  Qualifications for license.  No person shall be
 
16 licensed as an elevator mechanic unless the person has
 
17 satisfactorily passed the examination administered by the
 
18 [board,] director, and satisfactorily completed at least two
 
19 years of training under the supervision of a licensed,
 
20 registered, or journey worker elevator mechanic."
 
21      SECTION 89.  Section 448H-7, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "448H-7  Temporary permit.  The [board] director may issue
 

 
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 1 a temporary permit to any person who has qualified as an elevator
 
 2 mechanic in another state with standards substantially equal to
 
 3 those of this chapter and who possesses skills or training not
 
 4 available in the State; provided that the [board] director shall
 
 5 not register any such person as an apprentice elevator mechanic.
 
 6 The [board] director shall, by rules and regulations, establish
 
 7 the terms of the temporary permit."
 
 8      SECTION 90.  Section 448H-9, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "[[]448H-9[]]  Injunctive relief.  The [board] director may
 
11 apply for an injunction in any court of competent jurisdiction to
 
12 enjoin any person who has not been issued a license or registered
 
13 or whose license has been suspended or revoked or has expired;
 
14 and, upon the filing of a verified petition in the court, the
 
15 court or any judge thereof, if satisfied by affidavit or
 
16 otherwise, may issue a temporary injunction, without notice or
 
17 bond, enjoining the defendant from further practicing as an
 
18 elevator mechanic.  A copy of the verified complaint shall be
 
19 served upon the defendant and the proceedings shall thereafter be
 
20 conducted as in other civil cases.  If it is established that the
 
21 defendant has been or is practicing as an elevator mechanic
 
22 without having been issued a license or registered or has been or
 
23 is practicing as an elevator mechanic after the defendant's
 

 
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 1 license has been suspended or revoked or has expired, the court
 
 2 or any judge thereof may enter a decree enjoining the defendant
 
 3 from further practicing as an elevator mechanic.  In case of
 
 4 violation of any injunction issued under this section, the court
 
 5 may summarily try and punish the offender for contempt of court.
 
 6 The injunction proceeding shall be in addition to, and not in
 
 7 lieu of, all penalties and other remedies provided in this
 
 8 chapter."
 
 9      SECTION 91.  Section 451D-2, Hawaii Revised Statutes, is
 
10 amended by amending the definition of "board" to read as follows:
 
11      "Board" means [the board of dental examiners,] the board of
 
12 medical examiners, the board of psychology, the board of nursing,
 
13 the board of osteopathic examiners, the board of veterinary
 
14 examiners, the board of acupuncture, the board of massage
 
15 therapy, the board of examiners in naturopathy, the board of
 
16 chiropractic examiners, and the board of pharmacy."
 
17      SECTION 92.  Section 468E-2, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By adding the definition of "director" to be
 
20 appropriately inserted and to read as follows:
 
21      ""Director" means the director of commerce and consumer
 
22 affairs."
 
23      2.  By deleting the definition of "board".
 

 
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 1      [""Board" means the state board of speech pathology and
 
 2 audiology, established under section 468E-6."]
 
 3      SECTION 93.  Section 468E-5, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "468E-5 Eligibility for licensure.  To be eligible for
 
 6 licensure by the [board] director as a speech pathologist or
 
 7 audiologist, a person shall:
 
 8      (1)  Possess at least a master's degree or its equivalent in
 
 9           the area of speech pathology or audiology, as the case
 
10           may be, from an educational institution recognized by
 
11           the [board;] director;
 
12      (2)  Submit to the [board] director evidence of eligibility
 
13           for meeting the requirements of the American Speech-
 
14           Language-Hearing Association for the certificate of
 
15           clinical competence in speech pathology or audiology,
 
16           or both; and
 
17      (3)  Pass a written examination approved by the [board.]
 
18           director."
 
19      SECTION 94.  Section 468E-6, Hawaii Revised Statutes, is
 
20 repealed.
 
21      ["468E-6 Board of speech pathology and audiology.(a)
 
22 There is hereby established within the department of commerce and
 
23 consumer affairs a state board of speech pathology and audiology
 

 
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 1 consisting of seven members.
 
 2      (b)  The membership of the board shall include two speech
 
 3 pathologists, two audiologists, and three public members, one of
 
 4 whom shall be licensed to practice medicine in the State and hold
 
 5 a certificate of qualification from the American Board of
 
 6 Otorhinolaryngology.  Appointees shall be fully licensed speech
 
 7 pathologists or audiologists.
 
 8      All members of the board shall be residents of the State.
 
 9      (c)  Members shall serve for a term of three years.  Terms
 
10 shall begin on the first day of the fiscal year and end on the
 
11 last day of the fiscal year.
 
12      (d)  Four members of the board shall constitute a quorum for
 
13 all purposes, but in no instance shall a meeting of the two
 
14 speech pathologist members and two audiologist members alone be
 
15 considered a quorum."]
 
16      SECTION 95.  Section 468E-7 Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "468E-7 Functions and powers of the [board.] director.
 
19 (a)  In addition to any other powers and duties authorized by
 
20 law, the [board,] director, in accordance with chapters 91 and
 
21 92, shall administer, coordinate, and enforce this chapter.
 
22      (b)  In addition to other powers and duties authorized by
 
23 law, the [board,] director, in accordance with chapter 91, shall
 

 
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 1 adopt rules relating to professional conduct to effectuate the
 
 2 policy of this chapter, including but not limited to rules that
 
 3 establish ethical standards of practice, and for other purposes,
 
 4 and may amend or repeal the same."
 
 5      SECTION 96.  Section 468E-8, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (b) to read as follows:
 
 7      "(b)  All speech pathologists and audiologists employed by a
 
 8 county or state government shall comply with the license
 
 9 requirements of this chapter by December 31, 1984; provided that:
 
10      (1)  Any person engaged in the practice of speech pathology
 
11           or audiology on or before October 1, 1981, as an
 
12           employee of or under contract to a county or state
 
13           government agency shall be deemed in compliance with
 
14           the licensure requirements without the necessity of
 
15           holding an ASHA certificate and may continue to
 
16           practice speech pathology or audiology, as the case may
 
17           be, for as long as the person remains continuously
 
18           employed in any county or state government agency for
 
19           that purpose; and
 
20      (2)  The records of the [board of speech pathology and
 
21           audiology] director shall distinguish between those
 
22           employees practicing speech pathology and audiology who
 
23           are licensed in accordance with this chapter, and those
 

 
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 1           who are deemed to be in compliance with the licensure
 
 2           requirements in accordance with this subsection."
 
 3      SECTION 97.  Section 468E-9, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (a) to read as follows:
 
 5      "(a)  A person eligible for licensure under section 468E-5
 
 6 and desirous of licensure shall make application for examination
 
 7 to the [board] director at least thirty days prior to the date of
 
 8 examination, upon a form and in such a manner as the [board]
 
 9 director shall prescribe."
 
10      SECTION 98.  Section 468E-10, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "[[]468E-10[]]  Examination for license.(a)  Each
 
13 applicant for licensure under this chapter shall take a written
 
14 examination in accordance with procedures prescribed by the
 
15 [board.] director.  Standards for acceptable performance shall be
 
16 established by the [board.] director.
 
17      (b)  Applicants for licensure shall be examined at a time
 
18 and place and under such supervision as the [board] director may
 
19 determine.
 
20      (c)  The [board] director may examine in whatever
 
21 theoretical or applied fields of speech pathology or audiology
 
22 [it] the director considers appropriate and may examine with
 
23 regard to a person's professional skills and judgment in the
 

 
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 1 utilization of speech pathology or audiology techniques and
 
 2 methods. 
 
 3      (d)  The [board] director shall maintain a permanent record
 
 4 of all examination scores."
 
 5      SECTION 99.  Section 468E-11, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "468E-11  Waiver of examination or parts thereof.  The
 
 8 [board] director shall waive the requirements of section 468E-5
 
 9 for applicants for licensure who, on the effective date of this
 
10 chapter, are actually engaged in this State in the practice of
 
11 speech pathology or audiology, upon proof of bona fide practice
 
12 presented to the [board] director in a manner prescribed by rules
 
13 adopted by the [board.] director."
 
14      SECTION 100.  Section 468E-12, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "468E-12  Issuance of license.  The [board] director shall
 
17 issue a license to any person who meets the requirements of this
 
18 chapter and who pays to the [board] director the initial license
 
19 fee."
 
20      SECTION 101.  Section 468E-13, Hawaii Revised Statutes, is
 
21 amended by amending subsection (a) to read as follows:
 
22      "(a)  In addition to any other actions authorized by law,
 
23 the [board] director may take disciplinary action against any
 

 
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 1 licensee, including but not limited to revocation, suspension,
 
 2 fine, or a combination thereof, or refuse to issue or renew a
 
 3 license for any cause authorized by law, including but not
 
 4 limited to the following:
 
 5      (1)  Obtaining a license by means of fraud,
 
 6           misrepresentation, or concealment of material facts;
 
 7      (2)  Professional misconduct or unethical conduct;
 
 8      (3)  Conduct constituting fraudulent or dishonest dealings;
 
 9      (4)  Violating any provision of this chapter or rules
 
10           adopted thereunder;
 
11      (5)  Failure to comply with [a board] an order[;] of the
 
12           director; or
 
13      (5)  Making a false statement on any document submitted or
 
14           required to be filed by this chapter.
 
15      SECTION 102.  Section 468E-14, Hawaii Revised Statutes, is
 
16 amended by amending subsection (b) to read as follows:
 
17      "(b)  Every person licensed under this chapter, on or before
 
18 December 31, 1975, and each odd-numbered year thereafter, shall
 
19 pay a fee for renewal of the person's license to the [board.]
 
20 director.  The [board] director may, in the event payment of the
 
21 renewal fee is rendered after December 31 of any odd-numbered
 
22 year, renew a license upon payment of the renewal of license fee
 
23 plus a monthly late renewal payment penalty, which penalty shall,
 

 
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 1 be multiplied by the number of full months which have elapsed
 
 2 since expiration of the license.  No person who requests renewal
 
 3 of license, whose license has expired, shall be required to
 
 4 submit to examination as a condition to renewal, if such renewal
 
 5 application is made within two years from the date of such
 
 6 expiration."
 
 7        PART II.  CONFORMING AMENDMENTS OUTSIDE OF TITLE 25
 
 8      SECTION 103.  Section 26-9, Hawaii Revised Statutes, is
 
 9 amended by amending subsection (c) to read as follows:
 
10      "(c)  The board of acupuncture, board of public accountancy,
 
11 [board of barbering and cosmetology,] boxing commission, board of
 
12 chiropractic examiners, contractors license board, [board of
 
13 dental examiners,] board of electricians and plumbers, [elevator
 
14 mechanics licensing board,] board of professional engineers,
 
15 architects, surveyors, and landscape architects, board of massage
 
16 therapy, board of medical examiners, [motor vehicle industry
 
17 licensing board, motor vehicle repair industry board,] board of
 
18 examiners in naturopathy, board of nursing, board of examiners in
 
19 optometry, board of osteopathic examiners, pest control board,
 
20 board of pharmacy, board of physical therapy, board of
 
21 psychology, board of private detectives and guards, real estate
 
22 commission, board of veterinary examiners, [board of speech
 
23 pathology and audiology,] and any board, commission, program, or
 

 
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 1 entity created pursuant to or specified by statute in furtherance
 
 2 of the purpose of this section including but not limited to
 
 3 section 26H-4, or chapters 484, 514A, and 514E shall be placed
 
 4 within the department of commerce and consumer affairs for
 
 5 administrative purposes."
 
 6      SECTION 104.  Section 423-1, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "423-1 Dental service corporation, formation.  A nonprofit
 
 9 dental service corporation may be formed for the purposes of
 
10 contracting with individuals and corporations, both public and
 
11 private, for defraying or assuming the costs of services of
 
12 dentists and dental surgeons, and the contracting on behalf of
 
13 dentists and dental surgeons to furnish such services.  The
 
14 director of commerce and consumer affairs shall grant to
 
15 applicants who file articles of incorporation in conformity with
 
16 section 415B-34 a charter of incorporation for the establishment
 
17 and conduct of a dental service corporation; provided that the
 
18 corporation may not engage directly or indirectly in the
 
19 performance of the corporate purposes or objects unless all of
 
20 the following requirements are met: 
 
21      (1)  Fifty licensed dentists and dental surgeons in this
 
22           State become members of the corporation; 
 
23      (2)  Membership in the corporation and an opportunity to
 

 
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 1           render professional services upon a uniform basis are
 
 2           available to all licensed dentists and dental surgeons
 
 3           in this State; 
 
 4      (3)  Voting by proxy and cumulative voting are prohibited;
 
 5           and 
 
 6      (4)  Certificate of compliance with the requirements of
 
 7           paragraphs (1), (2), and (3) has been issued to the
 
 8           corporation by the [board of dental examiners.]
 
 9           director of commerce and consumer affairs.
 
10      Any charter granted or corporation created under authority
 
11 of this section shall be subject to all general laws enacted in
 
12 regard to nonprofit corporations."
 
13      SECTION 105.  Section 431:10C-305, Hawaii Revised Statutes,
 
14 is amended by amending subsection (c) to read as follows:
 
15      "(c) (1)  If a temporary substitute vehicle is made
 
16 available to a customer by an auto repair shop registered with
 
17 the [motor vehicle repair industry board] department of commerce
 
18 and consumer affairs or a motor vehicle dealer licensed by the
 
19 [motor vehicle industry licensing board,] department of commerce
 
20 and consumer affairs, while the shop or dealer repairs or
 
21 services the customer's insured motor vehicle, the motor vehicle
 
22 insurance policy of the customer's insured motor vehicle shall be
 
23 primary over the policy on the temporary substitute vehicle; and
 

 
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 1      (3)  In the event that a customer's insured motor vehicle is
 
 2           operated by a registered repair shop in the course of
 
 3           service or repair, or to verify repairs, the motor
 
 4           vehicle insurance policy of the registered repair shop
 
 5           shall be primary over the policy on the customer's
 
 6           insured motor vehicle."
 
 7                    PART III.  OTHER PROVISIONS
 
 8      SECTION 106. All rules, guidelines, and other material
 
 9 adopted or developed by a board abolished by this Act shall
 
10 remain in full force and effect until amended or repealed by the
 
11 director of commerce and consumer affairs.
 
12      In the interim, every reference to an abolished board in
 
13 those rules, guidelines, and other material is amended to refer
 
14 to the director of commerce and consumer affairs.
 
15      SECTION 107.  This Act does not affect rights and duties
 
16 that matured, penalties that were incurred, and proceedings that
 
17 were begun, before its effective date.
 
18      SECTION 108.  All Acts passed during this regular session of
 
19 1999, whether enacted before or after the passage of this Act,
 
20 shall be amended to conform to this Act, unless such acts
 
21 specifically provide otherwise.
 
22      SECTION 109.  Statutory material to be repealed is
 
23 bracketed.  New statutory material is underscored.
 

 
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 1      SECTION 110.  This Act shall take effect upon its approval.
 
 2 
 
 3                           INTRODUCED BY:  _______________________
 

 
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