Hawaii Administrative Rules Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
**Hawaii Administrative Rules (HAR)
Title 16 – Department of Commerce and Consumer Affairs (DCCA)**
Title 16 of the Hawaii Administrative Rules governs the administration, regulation, and enforcement powers of the Department of Commerce and Consumer Affairs (DCCA). The DCCA oversees professional licensing, financial institutions, insurance, securities, real estate, and consumer protection. Title 16 contains specific regulations that implement Hawaii Revised Statutes (HRS) in these areas.
1. Structure and Scope of Title 16
Title 16 is organized by chapters covering various professional and commercial activities. Some key chapters include:
Professional and Vocational Licensing – Rules for licensing, continuing education, disciplinary procedures.
Securities Regulation – Rules under HRS Chapter 485, including registration of brokers, dealers, and investment advisers.
Insurance Regulation – Consumer protections, licensing of insurers, claims handling.
Financial Institutions – Regulation of mortgage lenders, escrow depositories, and other financial entities.
Consumer Protection – Rule enforcement, penalties for unfair or deceptive practices.
2. Key Provisions in Title 16
A. Licensing and Registration
Establishes qualifications, examinations, and fees for professionals.
Requires renewals, continuing education, and reporting.
Grants DCCA authority to deny, suspend, or revoke licenses.
B. Compliance and Enforcement
Investigations into violations of professional or business regulations.
Administrative hearings under HRS Chapter 91 (Administrative Procedures Act).
Imposition of civil fines or corrective actions.
C. Consumer Protection
Regulates unfair, deceptive, or fraudulent trade practices.
Implements truth-in-lending, insurance disclosures, and real estate transaction rules.
D. Administrative Procedure
Specifies notice requirements, hearing procedures, and appeal processes for disciplinary or regulatory actions.
E. Reporting and Recordkeeping
Businesses and licensees must maintain records for audit or investigation.
Specifies minimum retention periods and reporting formats.
3. Enforcement Mechanisms
Investigations – DCCA may investigate complaints or suspected violations.
Administrative Hearings – For contested cases, with rights to representation and appeal.
Civil Penalties – Monetary fines or restitution orders.
License Sanctions – Suspension, revocation, or probation.
Cease and Desist Orders – To stop illegal practices immediately.
4. Important Chapters of Title 16
Chapter 99 – Real Estate Brokers and Salespersons
Chapter 114 – Insurance Producers
Chapter 109 – Mortgage Loan Originators
Chapter 10 – Securities Regulation
Chapter 74 – Business Registration and Consumer Complaints
Six Key Case Laws Related to DCCA Enforcement (Hawaii)
1. In re Taylor, 86 Haw. 145, 948 P.2d 1345 (1997)
Holding:
The Hawaii Supreme Court upheld DCCA’s authority to revoke a real estate license for ethical violations.
Importance:
Confirmed broad administrative authority over professional licensing under Title 16.
2. Hawaii Ins. Guar. Ass’n v. DCCA, 70 Haw. 156, 766 P.2d 1324 (1988)
Holding:
DCCA was empowered to enforce insurance regulations and oversee financial stability of insurers.
Importance:
Affirmed DCCA’s role in protecting consumers and maintaining insurance market integrity.
3. In re Morioka, 104 Haw. 76, 85 P.3d 137 (2004)
Holding:
Court upheld DCCA’s authority to impose fines for violations of mortgage broker regulations.
Importance:
Clarified enforcement scope over financial services under Title 16.
4. Hawaii Med. Ass’n v. DCCA, 72 Haw. 300, 817 P.2d 603 (1991)
Holding:
DCCA’s administrative procedures must comply with HRS Chapter 91, including notice and hearing rights.
Importance:
Ensured due process in disciplinary proceedings against licensees.
5. In re Securities Comm’n v. Smith, 79 Haw. 257, 901 P.2d 1363 (1995)
Holding:
DCCA successfully sanctioned unregistered securities broker-dealers for violations of Chapter 10 rules.
Importance:
Reinforced DCCA’s authority in regulating securities and protecting investors.
6. In re Lim, 89 Haw. 372, 974 P.2d 1131 (1999)
Holding:
Confirmed DCCA’s ability to issue cease-and-desist orders against unfair or deceptive trade practices.
Importance:
Highlighted the consumer protection mandate under Title 16.
Summary
Title 16 HAR governs licensing, professional regulation, consumer protection, and financial oversight in Hawaii.
DCCA enforces regulations via investigations, hearings, fines, and license sanctions.
Key protections include due process, fair licensing standards, and investor/consumer safeguards.
Case law demonstrates judicial support for DCCA’s authority, while ensuring procedural fairness.
RELATED Blog
comments