Bill Text: HI HB723 | 2016 | Regular Session | Amended
Bill Title: Activity Desks; Exemptions; Fiduciaries; Client Trust Accounts; Reports
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Introduced - Dead) 2015-12-17 - Carried over to 2016 Regular Session. [HB723 Detail]
Download: Hawaii-2016-HB723-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
723 |
|
TWENTY-EIGHTH LEGISLATURE, 2015 |
H.D. 1 |
|
|
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 on July 1, 2020.
Report Title:
Activity Desks; Exemptions; Fiduciaries; Client Trust Accounts; Reports
Description:
Requires activity desks 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. (HB723 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
