On Wednesday, June 16, 2021, Governor David Ige signed into law:
HB940 mandates reporting of suspected financial exploitation of elders and vulnerable adults in relation to securities. Provides immunity for good faith reporting. Authorizes the delay of disbursements and transactions in situations of suspected financial exploitation.
HB1192 transitions from lump sum deferred deposit transactions to installment loan transactions. Specifies various consumer protection requirements for installment loans. Beginning 1/1/2022, requires licensure for installment lenders that offer installment loans to consumers. Repeals the statutory authorization for deferred deposit transactions on 1/1/2022.
SB793 repeals the exemption of individuals with disabilities from minimum wage requirements.
Statement by Representative Dale T. Kobayashi on Governor's Bill Signing of HB940
"Given our large aging population in Hawaii, and more than other parts of the country we have a very trusting aging population, we need to make sure they are protected. It is not like they are uninformed but with difficult areas of law like securities where experts opinions can differ, it is really important to have some kind of framework to protect our vulnerable adults and seniors. The large majority of financial advisors are great individuals, but we are always on the lookout for behaviors that raise red flags."
Statement by Chair Aaron Ling Johanson on Governor's Bill Signing of HB1192
"Phasing out payday loans and creating a more consumer friendly installment loan will be a dramatic improvement for about 20% of Honolulu's population that relies on payday loans because they are underbanked or unbanked," said Johanson (Chair, House Consumer Protection and Commerce Committee). "Installment loans are better for the consumer because borrowers are able to build credit and preserve their access to capital on much more favorable terms."
Pew Charitable Trusts estimates that for the typical Hawai‘i payday loan of $300, a consumer ends up paying on average $529 over five months for that $300 loan.
“For too long, payday loans have trapped so many of our most financially vulnerable people in a cycle of debt that they cannot escape. This legislation not only corrects this serious injustice, but also and more importantly enables access to needed capital while providing a path to greater financial self-sufficiency and opportunity," said Rep. Johanson.
Statement by Chair Richard H.K. Onishi on Governor's Bill Signing of SB793
"With today's passage of SB 793, the State of Hawaiʻi will be correcting an outdated provision in our Minimum Wage Law that no longer serves its original intent and actually discriminates against those with disabilities," said Representative Richard H.K. Onishi, Chair of the House Labor & Tourism Committee."
Photos courtesy of The office of The Governor