Hawaii Senate Commerce Committee adopts changes to multiple consumer-protection bills, defers others for more work

The Senate Committee on Commerce and Consumer Protection met in Conference Room 229 at the Hawaii State Capitol on Feb. 20, 2025, to take final action on multiple measures previously heard by the committee and to receive testimony on others.

The committee passed several bills with amendments, deferred effective dates on a subset of measures to July 1, 2050 to allow additional work, and postponed or deferred consideration of other bills to a later date. Key measures that moved forward included legislation on replacement coverage for child passenger restraints in motor-vehicle insurance, restrictions on rental-application rejections tied to paystubs, and rules governing mortgage servicers' handling of insurance proceeds after residential property damage.

Why it matters: The measures affect consumers across Hawaii — renters seeking housing, homeowners recovering from property damage, vehicle-owners, pharmacists and pharmacies — and involve changes to insurance practice, mortgage-servicing procedures and licensing/implementation timetables for professional practice. Several measures were advanced with technical and substantive amendments requested by state agencies and industry stakeholders, and the committee put defective effective dates on some bills to allow the Legislature more time to refine final language.

What the committee did

- SB 588, SD1 (first item heard): The committee voted to pass the measure with amendments and deferred the effective date to July 1, 2050 to foster additional discussion. The chair and vice chair voted in favor, and the motion was adopted. (Action: pass with amendments; effective date deferred.)

- SB 1449, SD1 and SB 1281, SD1: The committee deferred decision making on both measures for one day and planned to reconvene the next day to consider proposed amendments. The chair announced the committee intended to move both measures but asked for one more review. (Action: postponed to reconvene tomorrow.)

- SB 1245, SD1 (pharmacists): The committee voted to pass the bill with amendments. The Board of Pharmacy's requested amendment changing the implementation date to July 1, 2026 was adopted; the committee retained a defective effective date on the measure. The committee also adopted proposed amendments from the Department of Human Services and from Walgreens; technical, non-substantive edits were also noted. (Action: pass with amendments; implementation date changed to 07/01/2026; defective effective date retained.)

- SB 1286, SD1 (motor vehicles): Members noted there was no supporting testimony and that the Office of Consumer Protection wished to work with the bill's introducer; the committee deferred the measure indefinitely and indicated it would try to take it up next year. (Action: postponed/held for next year.)

- SB 1287 (transparency): The committee passed the measure with amendments adopting the Office of Consumer Protection's proposed changes and minor technical edits. The measure carried without recorded reservations. (Action: pass with amendments.)

- SB 1298, SD1 (recycling): The committee elected to keep the measure moving, defer the effective date to July 1, 2050, and make technical non-substantive amendments for further discussion. (Action: continue discussion; effective date deferred.)

Testimony and decision-making on three consumer-facing measures later in the session

- SB 419 (insurance; child passenger restraints): Andrew Kennedy, Attorney General, provided written comments and suggested adding a clause to protect against possible contract impairment. The committee adopted the Attorney General's proposed amendments, noted other technical non-substantive edits, and deferred the effective date to July 1, 2050; the motion to pass with amendments was adopted. As Andrew Kennedy told the committee: "[we] provide our written comments, suggesting a clause to protect against possible contract impairment." (Action: pass with amendments; effective date deferred to 07/01/2050.)

- SB 942 (rental applications): James Nelson testified in support, explaining the bill would allow applicants to show alternative proof of ability to pay rather than a recent paycheck. Nelson said, "I will stand on my testimony and support." Lindsay Garcia of the Hawaii Realtors testified with comments and offered "friendly amendments" clarifying licensees' obligations to clients. The committee adopted the Realtors' proposed amendments and defected the effective date to July 1, 2050. One member recorded a vote with reservations, citing concerns about potential burdens on retirees and elders who may not have recent paychecks. (Action: pass with amendments; effective date deferred to 07/01/2050; one recorded reservation.)

- SB 1142 (insurance proceeds; mortgage servicers): Dwight Young, Commissioner of Financial Institutions (DCCA), stood on the division's written testimony and offered to answer questions. Madeline McCaig of the Council for Native Hawaiian Advancement urged passage, citing difficulties the group's Recovery Center has seen in distributing insurance proceeds after disasters: "This wasn't the first disaster and it's certainly not going to be the last. And we are due to pass this measure. Mahalo," she said. The committee adopted technical non-substantive amendments, defected the effective date to July 1, 2050, and passed the measure with amendments. Testimony in support was submitted by industry groups including the Mortgage Bankers Association of Hawaii and Hawaii Public Adjusters and by community organizations including Lahaina Strong. (Action: pass with amendments; effective date deferred to 07/01/2050.)

Votes at a glance

- SB 588, SD1: Passed with amendments; effective date deferred to 07/01/2050; adopted by recorded aye votes from the chair, vice chair, Senator McKelvey, Senator Richards and Senator Awe. - SB 1449, SD1: Deferred one day for further amendments; reconvene planned. - SB 1281, SD1: Deferred one day for further amendments; reconvene planned. - SB 1245, SD1 (pharmacists): Passed with amendments; implementation date changed to 07/01/2026; defective effective date retained; adopted unanimously among members present. - SB 1286, SD1 (motor vehicles): Deferred/held for next year to allow Office of Consumer Protection to work with introducer. - SB 1287: Passed with amendments adopting Office of Consumer Protection language. - SB 1298, SD1 (recycling): Continued for further discussion; effective date deferred to 07/01/2050. - SB 419 (insurance; child passenger restraints): Passed with Attorney General's amendments; effective date deferred to 07/01/2050. - SB 942 (rental applications): Passed with Realtors' amendments; effective date deferred to 07/01/2050; one recorded vote with reservations. - SB 1142 (insurance proceeds; mortgage servicers): Passed with amendments; effective date deferred to 07/01/2050.

What comes next

The committee set reconvening dates for some measures to allow additional drafting and to consider proposed amendments. Measures with defective effective dates have been left open for further amendment before being printed in final form for later legislative steps. Several measures noted agency or industry drafting input (Department of Human Services, Board of Pharmacy, Walgreens, Office of Consumer Protection, DCCA); committee members signaled they expect to continue coordinating language with those parties.

Meeting note: The record indicates the committee used a "defective" effective date (commonly used to delay a bill's effective date) for several measures to allow additional work and drafting before final legislative action.

(Reporting by the Senate Committee on Commerce and Consumer Protection decision-making hearing, Feb. 20, 2025.)