Hawaii’s business-registration upgrade has run into problems during a large-scale transition from aging systems to a newer platform. In September, the Department of Commerce and Consumer Affairs (DCCA) said the migration covered more than one million documents and about five million records; the systems being replaced had been in use for more than 20 years. The Honolulu Star-Advertiser also reported that the division handles over 160,000 transactions a year and maintains information on more than 200,000 registered entities.
A troubled transition and an expanding backlog
The new system launched in July using Salesforce technology, according to a November DCCA statement distributed through EIN Presswire. In September, a DCCA spokesperson told the Star-Advertiser that technical problems with the migration were delaying filings, but did not provide a count of affected registrations or a resolution date.
By November, the division was four months behind, with 40,000 filings awaiting processing, Hawaii News Now reported. Its coverage said the delays were affecting real estate transactions, nonprofit grants and business startups. Ty Nohara, the state securities commissioner, told the outlet the department had been receiving about 7,000 calls a month since July from people seeking information.
Questions about the project and its contractor
The available reporting gives different figures for Pacxa’s work. Hawaii News Now reported that the state hired the company in 2021 under a $2 million contract. Honolulu Civil Beat reported that Century Computers Inc., doing business as Pacxa, received a $1.527 million contract in May 2022 to act as systems integrator for the modernization project. The information available here does not explain whether the amounts refer to different scopes or represent a discrepancy.
Civil Beat’s 2023 coverage described an earlier review of the modernization effort: a May assessment identified 33 defects and 67 enhancements, and DCCA put the project on hold in August to reassess it. At that point, the project was budgeted at $1.86 million and more than $500,000 had been paid to the vendor and consultants. Hawaii News Now separately reported that Pacxa had limited experience with Salesforce, used subcontractors, and continued on the project after an oversight report raised multiple concerns in 2023.
Scott Matayoshi, chair of the House Consumer Protection and Commerce Committee, attributed the failure to Pacxa’s Salesforce experience and problems with subcontractors, and said state technology leaders should have stepped in sooner, according to Hawaii News Now. The outlet also reported that lawmakers have sought answers and a repair timeline.
Repair work and filing operations
DCCA said in its November update that Salesforce specialists had assessed the system and identified problems with its design and implementation. Salesforce’s Professional Services organization will lead remediation without charge, while DCCA continues processing pending filings and working to reduce the backlog, the department said in the statement carried by EIN Presswire.
Hawaii News Now reported that the Salesforce team includes at least 20 people and that Nohara relayed an estimate of 11 weeks to get the system running again. Those details come from the outlet’s reporting; the DCCA statement described the remediation effort but did not give that estimate.
