STAND. COM. REP. NO. 937

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 936
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 936, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO COMMERCIAL PAPER,"

begs leave to report as follows:

     The purpose of this bill is to allow persons to assess a
service charge of not more than $20 for a dishonored check or
other negotiable instrument.

     Testimony in support of this bill was received from the Life
of the Land, the Retail Merchants of Hawaii, Credit Associates of
Maui, Ltd., the Hawaiian Collectors Association, Inc., State Wide
Collections, the Legislative Information Services of Hawaii and a
member of the public.  Testimony in opposition to this bill was
received from the Department of Commerce and Consumer Affairs.

     Your Committee finds that the $20 service fee is fair and
reasonable to deter the writing of bad checks and to defray
collection costs.  Testimony received from the Department of
Commerce and Consumer Affairs raised the concern that the measure
lacked a notice requirement at the point of sale specifying the
$20 fee.  Your Committee believes that point of sale notice of
dishonored check fees may have been necessary when fees were left
to the discretion of the vendor, however, since this measure
limits fees to a maximum of $20, your Committee finds that
enactment of this law is sufficient notice to the public and that
point of sale disclosures would create an unnecessary burden and
expense to business.

 
 
                                 STAND. COM. REP. NO. 937
                                 Page 2

 
  
     Your Committee has amended this bill by making technical,
nonsubstantive amendments for purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 936, H.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as H.B. No. 936, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   PAUL T. OSHIRO, Chair