House Standing Committee on Consumer Protection & Commerce

Good afternoon everyone. We are convening the Committee on Consumer Protection and Commerce. It is Tuesday, March 25, 2025 about 2:05 p.m. in Conference Room 329 for the 2:00 p.m. agenda. In order to allow as many testifiers people to testify as possible, there will be a 2 minute time limit per testifier.

For those on Zoom, please keep yourself muted and your video off while waiting to testify and after your testimony is complete. The Zoom chat function will allow you to chat with the technical staff only. Please use the chat only for technical issues. If you are disconnected unexpectedly, you may attempt to rejoin the meeting.

If disconnected while presenting testimony, you may be allowed to to continue if time permits. Please note the House is not responsible for any bad Internet connections on the testifier's end. In the event of a network failure, it may be necessary to reschedule the hearing or schedule a meeting for decision making.

In that case, an appropriate notice will be posted. Please avoid using any trademarked or copyrighted images. Please refrain from profanity or uncivil behavior. Such behavior may be grounds for removal from the hearing without the ability to rejoin. Can I like record that and just play the recording? I feel like this thing's driving me nuts.

Okay, we'll look into that. Let's see. First up on the agenda, SB 1402 SD1 HD1, relating to vessels in state commercial harbors. We've got Captain Andy Sailing Incorporated in opposition. Not present.

Not present. Okay, anyone else here to testify in this measure? That's all I've got. Okay, move on then. SB 1411 SD2HD1 relating to Medicaid third party liability. First up. Only one up. Department of Human Services in support.

Aloha. Gina Moore Peterson, MedQuest Administrator. On behalf of the Department of Human Services, we stand on our written testimony and strong support. We do ask that the effective date be restored to upon approval. Thank you much.

Thank you. Next up, we actually. That's it. Anyone else here to testifying this measure? Okay, seeing none. Members, any questions? All right, SB moving on to SB 1438 SD1 relating to home care agencies. Department of Health in support.

Good afternoon. Thank you. Chair, vice chair and members of the committee, Justin Lamb representing the Department of Health. The Department of Health stands on its written testimony. Over the past eight years, home care agencies have been utilizing unlicensed personnel to perform skilled nursing services and puts the kupuna of our state at risk.

So thank you for the opportunity to testify on this measure and I'm available for any questions.

Thank you. Anyone else here to test- Anyone else here to testify on this measure?

Aloha, chair.

Yep. Go ahead, Greg. Oh. State your name, please.

Thank you. Greg Masakian. I'm here to testify in support of this bill. I wasn't aware of it. I just reviewed it before the session started. I currently serve as the first Vice President of the Kakua Council, which is an elder advocacy organization.

I also serve as a Director of the Hawaii Alliance for Retired Americans, and I serve as a board member on the Waikiki Neighborhood Board. I'm here speaking as an individual, but I fully support this bill and I hope that you listen to the Department of Health.

Thank you. Anyone else here to testify in this measure? Members, any questions? Okay.

See, now we'll move on to SB 1449, SD1, HD1, relating to prior authorization of healthcare services. First up, Shipta in support.

All right. Hawaii Medical Association in support.

Nope.

Aloha Chair Matayoshi. Vice Chair Chun. And Committee, Dr. Elizabeth Ann Ignacio. Hawaii Medical Association, a Maui physician, HMA, stands on our testimony and support and we are available for questions. Chair.

Thank you. Next up, we have Hawaii Medical Association, Gerald Garcia in support.

Aloha, Honorable Representatives, Dr. Jerry Garcia. I'm a board double board certified specialist, pain specialist and anesthesiologist. I serve people, both patients in Maui and in Oahu. This is an important bill. I also chair the Public policy Committee for HMA. I'm here for questions. I stand by HMA's testimony. Thank you for the opportunity.

Thank you. Next up, Hawaii Association of Health Plans with comments.

Good afternoon, Chair. Vice Chair. Members of the Committee, Rachel Wilkinson.

On behalf of the Hawaii Association of Health Plans, we're going to largely stand on our written testimony offering comments, and just wanted to highlight that we'd like to ensure that the reporting noted in the Bill that it aligns with current CMS regulations which are set to be implemented next year.

And we also want to note that we'd be willing to participate in further discussions. Thank you.

Thank you. Next up, HMSA with comments.

Chair Matayoshi. Vice Chair Chun. Members of the Committee, Walden. On behalf of hmsa, we stand on our written testimony, but just want to acknowledge all the hard work of the Legislature and the stakeholders in getting to this point with the working group and the reporting available for questions. Thank you.

Thank you. Anyone else here to testify in this measure? Members, any questions? Okay, let's move on to SB 1291 SD1, relating to certified public accountants. First up, we have Hawaii Board of Public Accountancy with comments.

Hello, Chair, members of the committee. My name is Hector West, Executive Officer for the Board of Public Accountancy. We stand on our written testimony in support, and I'm here for any questions. Thank you.

Thank you. Next up, we have Hong Consulting, LLC in support.

Hello. My name is Adrian Hong, Managing Member of Hong Consulting and a Board Member of the Hawaii Society of CPAs. I want to thank the committee for the opportunity to submit testimony. I am in strong support of this bill in both capacities as action is desperately needed to increase the pipeline of certified public accountants in Hawaii.

While we, while there's both a companion bill, HB 983 and SB 1291 SD1, and there is substantially the same. The HSCPA strongly supports SB 1291 SD, as it has an effective date. We request that this committee move this measure forward as is. If you have any questions or comments, I'm available. Thank you so much.

Thank you. Next up, we have the Hawaii Society of CPAs in support. Not present. Hawaii, oh, he's present. Sorry, we had you on zoom.

Chair, honorable Vice Chair, and the members of the committee. My name is Frank Kudo. I am President for the Hawaii Society of CPAs. I'm also Professor of Accounting and Division Chair for the Business and Cyber School at the University of Hawaii, West Oahu.

I stand on my written testimony, and this bill will help increase the flow of accountants into the State of Hawaii to fulfill our workforce. Thank you.

Thank you. Next up, Hawaii Association of Public Accountants, in support. They're really not present this time. All right, Hawaii, you know, I've got one more person, Ron Heller, in support. Okay.

Yes, I've submitted written testimony. I just want to note that the Senate version, SB 1291, that's before you today is the same as HB 983 that this committee previously passed. There are some very trivial differences in wording, but the substance is exactly the same. And I'd be happy to address any questions.

Thank you. That's all the testifiers we have signed up. Anyone else here to testify in this measure? Members, any questions? Okay, make a record hearing time here. SB752, SD1 relating to insurance. No, maybe not. Let's see. First up, Hawaii Insurers Council in opposition.

Chair Marioshi, Vice Chair Chun. Members of the Committee, I'm Mike Onofrietti representing HIC. We stand on our testimony in opposition, but we also offered some comments on the bill and various components here to answer any questions if needed. Thank you.

Thank you. Next up, State Farm with comments.

Not present.

Not present. Okay. Liberty Mutual Insurance with comments.

Good afternoon. Chair, Vice Chair. Members of the Committee. Steve Tevis for Liberty Mutual. As we stand on our testimony, as we submit it, if you wish to move the bill forward, we've asked for some amendments regarding non payment of premiums and material misrepresentation and that the bill reflect that it only pertains to homeowners insurance. Thank you.

I'm here for any questions. Thank you. Chair.

Okay, that's, that's it. That we have signed up. Anyone else here to testify this measure?

Chair Zoom.

Yep. Hey, go ahead Greg.

Wasn't going to, but I have to just a comment. So I, I do support this bill and I. State your name for the. I'm sorry, Greg. Greg Misakian again submitting testimony as an individual and aloha again to Chair, Vice Chair and Members of the Committee.

I do support this Bill and I would also say I did read through the testimony and I did see that there's a comment regarding splitting out the insurance. I realize non payment is an issue, so that needs to be addressed in any of the wording.

So if somebody doesn't pay their insurance for their insurance, you know, they should have some kind of a leeway to be able to pay with, with some notice so they don't just get their insurance cut off, but that should be addressed in any amended version of this.

And the other thing that I would ask if you could amend this or add some wording to the effect of, especially with homeowners insurance and specifically with homeowners insurance, the reason for denial of coverage. We've been talking about the hurricane insurance.

So if there's a denial of coverage, just try to give a reasonable explanation of why the coverage is being denied. In many cases, homeowners don't get that. Thank you so much.

Thank you. Anyone else here to testify in this measure? Members, any questions? All right, back on track. Let's go to SB 1369 SD1, relating to Title 24, Hawaii Revised Statutes. With this super exciting bill, we have the DCCA Insurance Division in support.

Good afternoon, Chair, Vice Chair, members of the committee, Jerry Bump, Acting Insurance Commissioner, stand on our testimony in support of this measure. Thank you.

Thank you. Anyone else here to testify in this measure? For the best. Any questions, members? Okay, let's move on to SB 385, SD1 relating to condominiums. First up, Hawaii Realtors in support.

Aloha chair, vice chair, members of the committee, my name is Lindsay Garcia from Hawaii Realtors, and we stand in support of the intent of this bill.

Thank you. Next up we have Raelene Tenno with comments.

Good afternoon. Chair Matayoshi, Vice Chair Chen, Representative Iwamoto and Representative Marten. My name is Raelene Tenno. I'm coming here today with several hats. One as part of Hawaii Council of Community Associations. They're affirmed that their only obligation about governing documents is is to the owners themselves, nobody else. They are fine with it being on a website.

It could be in a either open website or the portal where owners have to log in. Same with if the condo has a communication portal like Town Square or there's another one called Condo something. But you have to be logged in, sign up to log in on my other hat as a licensed mortgage loan originated.

There are complications in doing some mortgage transactions where we have to have the governing documents. Sometimes on a purchase transaction we find that sometimes the they don't have them, the owner does not have them or the proposed buyer does not have them. And we have challenges in getting the documents.

Even in a reverse mortgage, we have challenges in obtaining those documents. And I can tell you when I in my office, they know I'm Ms. Condo World. And so they came to me and asked me, can you help us? And I called the property management company and I said, hey, we need help in doing this reverse mortgage.

Can you help us out with the owner and let us have, let her have the documents. And the response came from the Vice President of the company. I know what the statute says, but we just don't do it.

And I get what she said, but it was the tone in which she said it that really had me a little like what? So it took a lot. And so if we have to go another avenue, it's a cost to the client, to the homeowner to get some of those documents. So.

And also in my testimony you'll find that I put in where the Hawaii Association of Realtors on their lease agreement. It says that the tenant has to abide by bylaws and house rules. So if we cut off their access to some of that information, how else are they going to get it?

It's more challenging to make sure that the owner actually provides all those documents with that lease agreement. So I'm kind of in a yes and no, but I see it from all points.

But it's got to be easier to obtain versus even for me as an owner trying to obtain documents, I have challenges with the management company alone. So thank you.

Thank you. Next up, Christine Morrison in support, not present. Hey, Greg Misakian, you're up. Comments?

Aloha again. Chair, vice chair, members of the committee, my name is Greg Misakian. And yes, I just have comments. I just heard the previous testifier mentioned Town Square, which was mentioned in my testimony.

The original version of this before it was amended, again I won't say the original version, but the last version before it was amended to the version that we have today was to have a website and to have free access. And that's what should be happening. So I was very clear in my testimony.

I hope I was very clear because I'm a person of engineering background that tries to be clear and give solutions. So if you read my testimony, you'll see that I was specifically talking about being able to provide the documents on the web portal like Townsquare that every owner who's an owner has access to, but non owners don't.

So you're registered to have that access. Those documents would then be free of charge. They don't use the third party portal. Some associations have their own website. Again that website should have a location where owners have access. And yes, agents do need these documents.

So the documents should be made available to the agent if the owner's allowing that agent to represent their property. If there's any stipulation of power of attorney or anything like that, that needs to be, you know, addressed with the owner and the agent.

But outside of that, residents that need those documents which would be governing documents like tenants, a renter, governing documents and house rules, things like that, they should be able to access that through the owners. So website, yes. Free access? Yes. Changing this? No. Please go back, revert and amend is my request.

Thank you for that opportunity to make that statement. Aloha.

Thank you. Anyone else here to testify in this measure?

I just wanted to add in when it comes to the websites because you know, I'd like the community to realize that the websites are. Yes, but it's at a cost to the association and that came up at one of our Hawaii Council meetings that it's an additional cost to the association which relates to maintenance fees.

But some of the websites are created by the management company themselves. It's kind of like a template and they do that and that can be very costly versus if they went out and sought an independent person or a company that could do it on their own and do it for the condo.

Because I know for Hawaii Council, my own company website, for me it's not a burden of cost, it's reasonable versus what I've seen on some other management associations that the management company created the website. So two sides of that.

If they go outside of the management company to create the website, it could be cheaper than if they stayed inside with the management company.

Anyone else here to testify here?

Could I add one comment? I didn't know we had a second bite at the apple, but one comment to clarify.

We don't, but I'll give you a brief one. You got 20 seconds. Thank you.

Because that testifier. Got it. Just to clarify what you're saying, and I forgot to add one thing and it's important. If there's no website, and I do realize there's a cost adder for the website, a lot of times the town square or the other third party option is available.

If there isn't a website, I put it in my testimony. Just simply email request for the electronic version of the documents and email it. Email it to the owners or the agent. That's. That's all you need to do. Thank you so much.

Yep. For the future, you guys are making me regret giving you second bites at the apple, so let's just keep it under control, that's all. All right. I don't see anyone else here to testify. Members, any questions? Okay.

Yep. Thank you. So just to clarify, so is this from. From Mr. Mosakian? Are you saying that it should maybe be both? Are you saying having it have an online access, but if an online access. If or when online access is not available, it shall be emailed for free, which is the current draft language, right?

Exactly. Well, I think there's some language in the current, but the current doesn't talk about the website. So. Yes, you're spot on, Representative Iwamoto.

If there isn't a website, the email option is the next option, but it needs to be free and electronic if available electronically, or at least, I mean, you can even add, if not available electronically, that that's the third iteration that it would or version.

It would be sent by a paper format at whatever the nominal cost for that is. But just really keep it simple. I mean, this is something that owners have been requesting for many, many years and it hasn't ever been cohesively put into one law. One bill.

Okay, thank you.

Thank you, members.

Any other questions? Let's move on. Last bill on the agenda, SB 140 SD 2 HD 1, relating to invasive species. First up, we have the Department of Agriculture with comments.

Good afternoon, Chair, Vice Chair, members of the committee. Jonathan Ho, Plant Quarantine Branch Manager on behalf of the Department of Agriculture, we stand on our written testimony, offering some comments and then on some proposed language to kind of streamline it as it relates to transportation and so available for questions. Thank You.

Thank you. Next up, DLNR in support.

Good afternoon, Chair, Vice Chair, committee members. Rob Hoff with Department of Land Natural Resources. We strongly support this bill. This is how invasive forest pests get moved around. There's a huge campaign on the mainland called Don't Move Firewood. In Hawaii, we're at an advantage because people can't throw firewood in the back of their truck and drive here.

Most states on the mainland also have regulations requiring the treatment of firewood to enter their state. So, this seems like a no brainer to me.

You know, I know Department of Ag has concerns and would prefer to put it in their administrative rules, but this is something that we've been trying to work, work with them on for the last five years and it hasn't moved. The standards have been in place for years. I don't really see the need for changing this.

We did have some concerns in an earlier hearing about the sale and movement and allowing them to regulate it then because it might not be declared as it interests the state. And so there have been instances where, you know, firewood has been confiscated in vendors or when it was infested. So that could be a problem.

So, thank you for this opportunity.

Thank you. Next up, CGAPS in support.

Aloha Chair, Vice Chair, members of the committee. My name is Stephanie Easley with the Coordinating Group on Alien Pest Species. You have our written testimony. We are in strong support of this bill. Firewood has bark. Forest pests can hide in bark.

Sometimes the tree is killed by whatever it is that's hiding in that bark and that could come here to Hawaii. Just kind of some background: we have been working on this project with HDOA to enact this very short rule into administrative rules since around 2019.

We had the head of the Don't Move Firewood program that HDOA - that DLNR just talked about address the group. They started a firewood task group that had National Park Service, Forest Service, lots of other government players. We did informal phone surveys. We had people send photos from around the state to figure out who the stakeholders were.

HDOA drafted this rule that's basically the unamended text that you have. And they held stakeholder meetings and then no action because they're going to put this rule that was in 2022 and no action since then.

They're going to put it in Chapter 4-70 that has 15 subsections - subchapters, the vast majority of which are before 1981, and many way before 1981, to get that chapter updated, which you have, you know, you have to compile the whole chapter will take years. I mean, I don't see a reasonable time frame that that could actually happen.

So, enacting it into statute would actually allow HDOA to enforce this heat treatment standards, which they say have testified and have worked on getting in place. With respect to their comments with allowing permit fees, it's going in Part 2 of Chapter 150A; Section 7.5 and 7.6 of that chapter would allow HDOA to charge for any permit fees.

The language with respect to transportation and sale; what has happened in the past, a bag of fire would have the pests, it's in a store shelf because it's moved through inspection. If there's not a prohibition on sale, HDOA can't stop it at that point. They've had to ask for voluntary compliance because they're moved through the inspection phase.

And their other comments may appear to be preempted by federal law. So, we hope that you will pass this bill unamended here. If you have any questions. Mahalo.

Thank you. Next up, Ohana Unity Party and Kingdom of the Hawaiian Islands in support. Anyone else here to testify in this measure? Members, any questions?

Oh, Chair.

Yep.

One last time.

First bite at the apple; go ahead.

Very quickly so you can end the meeting. Again, Greg Misakian. And I am in strong support of this bill and also the previous testifier. I know how smart she is on these issues, as you could, you know, attest just from listening to her. But if, if you don't know that, I'm, I'm attesting to that.

She knows what she's talking about, and hopefully you'll pass this bill forward. Thank you so much.

Thank you. Anyone else here to testify in this measure? Members, any questions? Okay, take a brief recess. Recess reconvening. All right, first up on the agenda, we've got SB 1402 SD1 HD1, relating to vessels in state commercial harbors. Chair's recommendation is to add language exempting tour boat operators from this measure.

I had talked to the parties, ILWU in particular, and they agreed that this was a reasonable exemption. Members, any comments? If not, Vice Chair for the vote. Oh, sorry, one second. Yeah, go ahead. Vice Chair.

Members voting on Senate Bill 1402 SD1 HD1. Chair's recommendation is to pass with amendments. [Roll Call] Chair, your recommendation is adopted.

Thank you. Members Moving on to SB 1411 SD2 relating to Medicaid third party liability. Chair's recommendation is to put on a clean date. Members, any comments? Vice Chair for the vote.

Members voting On Senate Bill 1411 SD2 HD1 Chair's recommendation is to pass with amendments letting the excused absence of Representative Ichiyama who would be excused for the remainder of the vote unless she comes. Any Members wish to vote with reservations? Any noes? Seeing none. Chair, your recommendation is adopted.

Thank you. Members. Moving on to SB 1438 SD1 relating to home care agencies. Chair's recommendation is to put on a clean date. Members, any comments? Vice Chair for the vote.

Members voting on Senate Bill 1438 SD1 recommendation is to pass with amendments. Any Members wish to vote with reservations? Any noes? No for Rep Pierick. Chair, your recommendation is adopted.

Moving on to SB 1449 SD1 HD1 relating to prior authorization of healthcare services. At the top of page six, Chair's recommendation is to add laboratory and diagnostic tests for consistency with page five.

We also want to add language to require the working group's first report to be due 20 days before the 2026 legislative session and 20 days before each session to follow. Members, any comments?

Chair, I just. Thank you. I just wanted to thank you for passing this bill. I'm really impressed by the working group having only five insurance companies and then having 10 representing consumers or customers, including the five healthcare service providers and then the five consumers or employer customers.

So thank you for making this a clearly consumer focused working group. Thank you.

Yeah, you're welcome. I mean really. Chair Marten did most of the work here, so really thanks. Thank you.

Thank you Chair Marten for looking out for consumers.

Okay, any other comments? Vice Chair for the vote.

Members voting on Senate Bill 1449 SD1HD1 recommendation is to pass with amendments. Are there any Members wish vote with reservations? Any noes? Seeing none. Chair, your recommendation is adopted.

Okay, next up, SB 1291 South Carolina relating to certified public accountants. Chair's recommendation is to pass this as is. I will note there's already a clean date on this. Members, any comments? Vice Chair for the vote.

Members voting on Senate Bill 1291 SD1 recommendation is to pass unamended. Are there any Members who wish to vote with reservations? Any noes Seeing none. Chair, your recommendation is adopted.

All right, moving on to SB752 SD1 relating to insurance. Chair's recommendation is to adopt the American Property Casualty Insurance Association's proposed amendment, but set a 20 day limit or 20 day notice for cancellation notices to keep the non renewal notice at 30 days and for customer non payment the notice will remain at 10 days.

We'll be limiting the bill to just real property insurance excluding notices. I'm sorry. I do still want to include commercial policies though that deal with residences like condominium building insurance. Also going to be defecting the date to July 1, 3000. Members, any comments? Vice Char for the vote.

Members voting on Senate Bill 752 SD1 recommendation is to pass with amendments. Any Members who wish vote with reservations? Any. Oh. Noting the presence of Representative Ichiyama, Any reservations or noes? Okay. Chair, your recommendation is adopted.

Thank you. Members moving on to SB 1369 SD1 relating to Title 24 Hawaii Revised Statutes. So mostly a housekeeping measure. Chair's recommendation is to insert a clean date. Members, any comments? Vice Chair for the vote.

Members voting on Senate Bill 1369 SD one recommendation is to pass with amendments. Voting all Members present. Are there any Members who wish vote with reservations? Any noes? Seeing none. Chair, your recommendation is adopted.

Moving on to SB385 SD1 relating to condominiums. Chair's recommendation is to require that electronic copies of the governing documents be provided for free upon request. We will be inserting language to allow charging for paper copies up to the reasonable cost of the materials and postage as needed. I would like to also conform HB HRS 514 b 154.5.

Accordingly, we'll be changing amended to amended and or restated for clarity as well for the for the governing documents. And I want to add a definition of the governing documents to be the declarations, bylaws, CCNRs and house rules also be defecting the date to July 1, 3000. Members, any comments? Vice Chair for the vote Members voting.

On Senate Bill 385-SD-1 recommendation is to pass with amendments. Are there any Members wishing to vote with reservations? Any noes? Seeing none. Chair, your recommendation is adopted.

All right, last up we've got SB140 ST2 HD1 relating to invasive species. Chair's recommendation is to pass this measure as is. Members, any comments?

Vice Chair for the vote Members voting on Senate Bill 140, SD 2 HD1 recommendation is to pass unamended. Are there any Members wishing to vote with reservations? Any noes? Chair, your recommendation is adopted.

Thank you everyone. We're adjourned.