SB 259: RELATING TO RECORDKEEPING.

A BILL FOR AN ACT

RELATING TO RECORDKEEPING.

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

     SECTION 1.  In 2022, the thirty-first legislature enacted House Bill 1991, House Draft 2, Senate Draft 2, Committee Draft 1, and former governor David Ige signed Act 108 into law, which amended section 486M-2, Hawaii Revised Statutes, and required pawnbrokers and secondhand dealers, within counties that have a population base of five hundred thousand or more, to submit their records of transaction electronically to a database at the discretion of the chief of police for that county.

     The legislature finds that chapters 445 and 486M, Hawaii Revised Statutes, are not definitive in regard to the recordkeeping requirements for secondhand dealers, which they are required to retain at their business.

     The legislature also finds that electronic submissions and filings provide a more effective system to streamline, simplify, and modernize business management, reduce unnecessary paper and electronic waste, and are less intrusive on the environment.

     The legislature also finds that pawnbrokers and secondhand dealers stimulate local business economies by reusing or recycling unwanted articles that have value.  If these articles of resale are not properly marked, they may ultimately end up in the waste management system.

     The legislature intends to support businesses that reuse or recycle articles, such as pawnbrokers and secondhand dealers, without the undue burden of the responsibility of retaining records of transaction, whether electronic or paper form, for an unspecified amount of time.

     The legislature intends to establish a recordkeeping requirement for secondhand dealers and records they are required to retain at their place of business.

     Accordingly, the purpose of this Act is to amend, standardize, and codify existing statutory requirements within chapter 445, Hawaii Revised Statutes, for pawnbrokers and records they are required to retain at their place of business, establishing a reasonable time period in which law enforcement may pursue criminal investigations and take enforcement actions without imposing an undue burden on pawnbrokers and secondhand dealers by requiring retention of documents that are unnecessary and wasteful.

     SECTION 2.  Chapter 445, Hawaii Revised Statutes, is amended by adding a new section to part VII to be appropriately designated and to read as follows:

     "§445-    Recordkeeping.  A record of all secondhand transactions shall be kept on the secondhand dealer's premises and open to inspection at any time by the treasurer, chief of police, or the treasurer or chief of police's authorized representative, for a period of two years after the date of sale."

     SECTION 3.  Section 445-134.17, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§445-134.17[]]  Recordkeeping.  A [copy] record of all pawn transactions shall be kept on the pawnshop premises and open to inspection at any time by the [proper authorities] treasurer, chief of police, or the treasurer or chief of police's authorized representative, for a period of [one year] two years after the maturity date."

     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 on July 1, 2077.

Report Title:

Honolulu Police Department Package; Pawnbrokers; Secondhand Dealers; Recordkeeping

Description:

Establishes recordkeeping requirements for secondhand dealers, requiring records to be retained for two years from the date of sale.  Amends and standardizes recordkeeping requirements for pawnbrokers, requiring records to be retained for two years from the date of maturity.  Effective 7/1/2077.  (SD1)

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

A BILL FOR AN ACT

relating to recordkeeping.

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

     SECTION 1.  In 2022, the thirty-first legislature enacted House Bill 1991, House Draft 2, Senate Draft 2, Committee Draft 1, and former governor David Ige signed Act 108 into law, which amended section 486M-2, Hawaii Revised Statutes, and required pawnbrokers and secondhand dealers, within counties that have a population base of five hundred thousand or more, to submit their records of transaction electronically to a database at the discretion of the chief of police for that county.

     The legislature finds that chapters 445 and 486M, Hawaii Revised Statutes are not definitive in regard to the recordkeeping requirements for secondhand dealers, which they are required to retain at their business.

     The legislature also finds that electronic submissions and filings provide a more effective system to streamline, simplify, and modernize business management, reduce unnecessary paper and electronic waste, and are less intrusive on the environment.

     The legislature also finds that pawnbrokers and secondhand dealers stimulate local business economies by reusing or recycling unwanted articles that have value.  If these articles of resale are not properly marked, they may ultimately end up in the waste management system.

     The legislature intends to support businesses that reuse or recycle articles, such as pawnbrokers and secondhand dealers, without the undue burden of the responsibility of retaining records of transaction, whether electronic or paper form, for an unspecified amount of time.

     The legislature intends to establish a recordkeeping requirement for secondhand dealers and records they are required to retain at their place of business.

     Accordingly, the legislature intends to amend, standardize, and codify existing statutory requirements within chapter 445, Hawaii Revised Statutes, for pawnbrokers and records they are required to retain at their place of business.

     This establishes a reasonable time period in which law enforcement may pursue criminal investigations and take enforcement actions without imposing an undue burden on pawnbrokers and secondhand dealers by requiring retention of documents that are unnecessary and wasteful.

     SECTION 2.  Chapter 445, Hawaii Revised Statutes, is amended by adding a new section to part VII to be appropriately designated and to read as follows:

     "§445-     Recordkeeping.  A record of all secondhand transactions shall be kept on the secondhand dealer's premises and open to inspection at any time by the treasurer, chief of police, or the treasurer or chief of police's authorized representative, for a period of two years after the date of sale."

     SECTION 3.  Section 445-134.17, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§445-134.17[]]  Recordkeeping.  A [copy] record of all pawn transactions shall be kept on the pawnshop premises and open to inspection at any time by the [proper authorities] treasurer,  chief of police, or the treasurer or chief of police's authorized representative, for a period of [one year] two years after the maturity date."

     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.

Report Title:

Honolulu Police Department Package; Pawnbrokers; Secondhand Dealers; Recordkeeping

Description:

Establishes recordkeeping requirements for secondhand dealers, requiring records to be retained for 2 years from the date of sale.  Amends and standardizes recordkeeping requirements for pawnbrokers, requiring records to be retained for 2 years from the date of maturity.

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

STAND. COM. REP. NO. 75

Honolulu, Hawaii

RE:    S.B. No. 259

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Public Safety and Military Affairs, to which was referred S.B. No. 259 entitled:

"A BILL FOR AN ACT RELATING TO RECORDKEEPING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish recordkeeping requirements for secondhand dealers, requiring records to be retained for two years from the date of sale; and

     (2)  Amend and standardize recordkeeping requirements for pawnbrokers, requiring records to be retained for two years from the date of maturity.

     Your Committee received testimony in support of this measure from one member of the Kauaʻi County Council.

     Your Committee finds that pawnbrokers and secondhand dealers stimulate local business economics by reusing or recycling unwanted articles that still have value.  Your Committee further finds that recycling is a critical part of preparing for the future of the State by combatting the detrimental effects on the climate caused by overuse of the limited landfill space available on the islands.  However, if recyclable articles of resale are not properly marked, they may end up in the waste management system.

     Accordingly, your Committee finds that it is beneficial to the State to support businesses that reuse or recycle articles without the undue burden of the responsibility of retaining records of transaction for an unspecified amount of time.  This measure accomplishes this by requiring businesses that resell items to maintain records of transactions for two years, which will prevent items from unnecessarily entering the overburdened waste management system and will also allow law enforcement to pursue criminal investigations and take enforcement actions without imposing a wasteful recordkeeping system on local businesses.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2077, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Public Safety and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 259, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 259, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Public Safety and Military Affairs,