Hawaii House Bill HB1097

Hawaii 2022 Regular Session

• Introduced: 1/27/21
• Refer: 2/1/21

Caption

Relating To The Department Of Commerce And Consumer Affairs.

Impact

The bill will not only alter the name of the certificate issued but will also modify related sections of the Hawaii Revised Statutes to ensure that businesses do not misrepresent their standing. The new certificate will explicitly state that it does not guarantee compliance with all laws, thus protecting consumers and reinforcing the integrity of the business registration process. This change is seen as a step towards enhancing consumer protection and improving transparency in business practices within the state.

Summary

House Bill 1097 aims to amend the terminology used in the state's business registration process, specifically changing the 'certificate of good standing' to a 'certificate of registration'. This change addresses public confusion regarding what the certificate represents, as it is currently perceived to imply that a business complies with all regulatory requirements, when it merely indicates proper registration with the Department of Commerce and Consumer Affairs. By renaming the certificate, the bill intends to clarify that it does not reflect compliance with tax or labor laws.

Contention

While the bill has been generally viewed positively for its consumer protection measures, there may be discussions about the potential pushback from businesses that have been utilizing the terminology of 'certificate of good standing' as a marketing tool. Concerns may arise regarding the adjustment period for businesses and whether the changes will adequately address the practices of those who exploit the ambiguity in the current terminology. This legislative change underscores the importance of ensuring that business entities maintain honesty in their communications with consumers.