HOUSE OF REPRESENTATIVES

H.B. NO.

723

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to activity desks.

 

 

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

 


     SECTION 1.  Chapter 468M, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§468M-      Fiduciary responsibilities of corporate officers; activity desks.   Each activity desk shall designate a corporate officer to be the fiduciary in charge of matters when the activity desk terminates its business with a deficient client trust account or an expired or canceled letter of irrevocable credit.  The activity desk shall provide notification in writing to the department within ten days after the designation or after any change in designation."

     SECTION 2.  Section 468M-1, Hawaii Revised Statutes, is amended by amending the definition of "activity desk" to read as follows:

     ""Activity desk" means any sole proprietorship, organization, trust, group, association, partnership, corporation, society, or combination thereof, which for compensation or other consideration, acts or attempts to act as an intermediary to sell, contract for, arrange, or advertise that it can or will arrange, or has arranged, activities which are furnished by an activity provider.  This chapter shall not apply to [any]:

     (1)  Any hotel as defined under section 486K-1[, or];

     (2)  Any air carrier as defined by the Federal Aviation Act of 1958 (49 U.S.C.S. Appx §1301), as amended[,]; or

     (3)  Any activity desk,

for services for which they do not accept consumer moneys for services other than their own."

     SECTION 3.  Section 468M-9.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§468M-9.5[]]  Record keeping requirements for client trust accounts.  (a)  An activity desk shall maintain all books and records necessary to comply with this chapter and any rules adopted pursuant to this chapter and shall make all records relating to client trust accounts available for inspection and audit within three business days of a written request by the director.  Nothing in this section shall prevent the director from inspecting or auditing the books and records of an activity desk as otherwise provided in this chapter or rules adopted by the director pursuant to chapter 91. 

     (b)  An activity desk shall keep and maintain copies of all bank statements, deposit slips, canceled checks, drafts, and wire or electronic transaction documents relating to client trust accounts for a period of at least two years.

     (c)  An activity desk shall submit monthly to the department a report of its month's sales and the ending balances of its client trust accounts."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Activity Desks; Exemptions; Fiduciaries; Client Trust Accounts; Reports

 

Description:

Requires activity desk to designate fiduciaries in case of certain business closures and to submit monthly financial reports to DCCA.  Exempts from the law certain activity desks that operate without compensation.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.