Hawaii Senate Commerce Committee adopts restaurant-reservation bill, advances rental-algorithm and foreclosure measures; several bills deferred

The Senate Committee on Commerce and Consumer Protection met Jan. 28, 2025, in Room 229 of the Hawaii State Capitol and by voice votes adopted and deferred a slate of consumer- and commerce-related bills.

Senator Jared, chair of the Senate Committee on Commerce and Consumer Protection, opened the first hearing of the 33rd Legislature and presided over testimony and questions on eight measures ranging from restaurant reservations to cremation contracts. The committee adopted some measures with amendments and deferred others for further discussion or decision making.

The most immediate action came on Senate Bill 102, which would prohibit third-party restaurant reservation services from listing or selling reservations without a written agreement from the restaurant. Deputy Attorney General Christopher Hahn recommended changes to strengthen the bill against legal challenge, saying, “We recommend putting a purpose section identifying a legitimate government interest and a non impairment provision at the end.” Victor Lim of the Hawaii Restaurant Association told the committee the association “strongly support[s] this bill 102,” arguing restaurants need contractual control over agents that represent them. The committee voted to adopt the Attorney General’s amendments and to defer the bill’s effective date to July 1, 2050 for continued discussion; the chair and vice chair recorded aye votes and other members present also voiced support.

On utility regulation, Senate Bill 137 would require the Public Utilities Commission to impose specified conditions when approving an acquisition, merger or consolidation of an electric utility. Michael (Mickey) Knox of the Department of Commerce and Consumer Affairs’ Division of Consumer Advocacy and representatives of the Public Utilities Commission offered comments; the Ulupono Initiative and a labor representative supported the bill, with the labor speaker urging protections for workforce collective-bargaining rights. Because stakeholders raised several technical and timing questions, the committee deferred SB 137 to the committee’s Jan. 31, 2025 decision-making session in room 229.

Senate Bill 142, requiring insurers that pay claims by check to deliver those checks by certified or restricted delivery to the last known address of the payee, drew opposition from insurers including the Hawaii Insurers Council and State Farm. Committee members raised concerns about displaced claimants and mail delivery after disasters; an industry representative described existing carrier practices of communication and stop-payment procedures. The committee deferred SB 142 to the Jan. 31 decision-making session.

Senate Bill 157 would prohibit algorithmic price-setting in Hawaii’s rental market and require the Department of the Attorney General to run a public education program on the prohibition. The bill drew written support from housing advocacy and business groups and was passed by the committee with an amendment deferring the effective date to July 1, 2050.

A proposal to establish a State-Owned Bank Implementation Board, SB 158, generated substantial opposition in written testimony from banking industry groups and was deferred indefinitely in the committee’s action. Senator McKelvey objected to the outcome in debate but the committee left the bill in indefinite deferment.

Senate Bill 318, directing the Department of Commerce and Consumer Affairs to adopt rules for direct-to-consumer genetic testing privacy and to specify whether investigative genetic genealogy techniques may be used, prompted a discussion about overlap with federal protections. Office of Consumer Protection witnesses said existing federal rules (HIPAA breach-notification frameworks and FTC standards) already provide baseline protections; the committee deferred the bill for further study.

Senate Bill 332, aimed at preventing bundling of foreclosed homes at public sale and extending the time before a sale is final (15 days, or 45 days if an eligible bidder submits a subsequent bid or notice), drew on-the-ground testimony from Lahaina Strong about post-fire foreclosure risk. Katie Austin of Lahaina Strong said the community is “grappling with the fallout from the foreclosure moratorium ending,” and the committee moved the bill forward with an amendment deferring its effective date to July 1, 2050.

SB 525, which would require mortuaries, cemeteries and preneed funeral authorities to provide written notice if precious metals are recovered after cremation and to obtain written consent before sale or recycling, prompted discussion between enforcement staff and industry representatives. Emma Lisonbee, enforcement attorney with the Office of Consumer Protection, noted OCP believes it has enforcement authority but recommended explicit statutory enforcement language: “This bill does not confer express authority upon OCP to pursue an enforcement action.” The Hawaii Funeral and Cemetery Association said the industry was unaware of consumer problems prompting the bill. The committee deferred SB 525 to the Jan. 31 decision-making session for further discussion and asked the association to provide documentation of current practices.

Votes at a glance

- SB 102 (restaurants): Adopted with amendments (Attorney General-recommended amendments adopted); effective date deferred to July 1, 2050; committee recorded affirmative voice votes from the chair and vice chair and support from members present. (Intro: transcript 1111.205; finish: transcript 3240.645)

- SB 137 (electric utilities; PUC conditions for mergers/acquisitions): Deferred to Jan. 31, 2025, 9:35 a.m., Room 229. (Intro: transcript 1324.475; finish: transcript 3255.125)

- SB 142 (insurance delivery of claim checks): Deferred to Jan. 31, 2025, 9:35 a.m., Room 229. (Intro: transcript 1789.29; finish: transcript 3288.2551)

- SB 157 (antitrust; algorithmic pricing prohibition for rental market): Passed with amendment deferring effective date to July 1, 2050. (Intro: transcript 1998.805; finish: transcript 3291.595)

- SB 158 (public banking; state-owned bank implementation board): Deferred indefinitely (committee recommendation). (Intro: transcript 2046.35; finish: transcript 3318.115)

- SB 318 (genetic information privacy rules): Deferred for further consideration. (Intro: transcript 2187.8052; finish: transcript 3362.99)

- SB 332 (foreclosures; no bundling at public sale; sale not final until 15 or 45 days): Passed with amendment deferring effective date to July 1, 2050. (Intro: transcript 2424.4001; finish: transcript 3376.865)

- SB 525 (cremation prior written notice and consent for recovered precious metals): Deferred to Jan. 31, 2025, 9:35 a.m., Room 229. (Intro: transcript 3406.9648; finish: transcript 3438.4949)

Why it matters

The committee’s actions address several consumer-protection priorities — from giving restaurants contractual control over third-party reservation agents to protecting homeowners in wildfire-impacted Lahaina from rapid foreclosure sales. The committee deferred multiple technically complex or stakeholder-contentious measures for further work, signaling an intent to refine statutory language and gather supplemental materials before final votes.

What’s next

Decision-making for several deferred measures is scheduled for Jan. 31, 2025, at 9:35 a.m. in Room 229; some measures were deferred indefinitely for additional stakeholder engagement.