Three bills designed to help some of Hawaii’s most vulnerable and financial needy became law on Wednesday by ensuring minimum wage pay for those with disabilities, helping to protect senior citizens from financial fraud and reforming payday lending practices.
Gov. David Ige has until Monday to announce which, of any, bills he intends to veto among the more than 200 bills that he was sent by the Legislature. But at an outdoor ceremony at Washington Place on Wednesday, Ige signed three bills intended to protect those who could use additional support and protection.
>> The latest version of House Bill 1192 gives so-called payday lending businesses until July 1, 2022, to reform their models by allowing customers to repay their loans through “small installment loans,” which could also allow them to build credit, Ige said.
He said that current payday practices create “a very, very unfortunate situation where there are those in our community who are under financial distress and they are prime targets for being taken advantage of.”
Ige called the upcoming reforms “better for consumers and for payday lenders.”
State Rep. Aaron Johanson, (D, Fort Shafter-Moanalua Gardens- Aliamanu), said 20% of Hawaii residents are “quite literally living paycheck to paycheck” and have no access to a checking account or other bank account.
They cannot generate savings, Johanson said, because “they have to use each check as collateral” for their payday loans that creates an “unsustainable cycle of debt.”
Johanson characterized the payday lending reforms that Ige signed into law Wednesday as “monumental.”
>> The latest version of House Bill 940 requires reporting of suspected financial exploitation of senior citizens and vulnerable adults and delays disbursements and transactions during exploitation investigations.
Ige called the financial abuse of senior citizens and vulnerable adults “truly tragic.” Hawaii now joins 28 other jurisdictions in mandating reporting of suspected financial abuse.
Kealii Lopez, state director of the AARP Hawaii chapter, said the financial exploitation of senior citizens and vulnerable adults “is absolutely something that Hawaii cannot stand for.”
Across the country, Lopez said, financial fraud has cost senior citizens and vulnerable adults $3 billion.
To report suspected financial fraud aimed at senior citizens or vulnerable adults, call the state Department of Commerce and Consumer Affairs, Commissioner of Securities Ty Nohara at 586-2850.
>> The updated version of Senate Bill 793 requires people with disabilities to be paid the state minimum wage of $10.10 per hour.
While legislators failed to increase Hawaii’s overall minimum wage last session, they did repeal what Ige called an “antiquated” and “outdated and unfair practice” of allowing lesser pay to employees with disabilities.
State Sen. Joy San Buenaventura, (D, Puna-Ka‘u), said Senate research found no Hawaii employer paying less than minimum wage to disabled employees.
But Buenaventura said, “it’s about high time we got away from this antiquated belief. … People should be paid on their abilities.”
