STAND. COM. REP. NO. 1083

                                   Honolulu, Hawaii
                                                     , 1999

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




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 936, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to allow a payee or a holder
of a check, draft, or order for the payment of money, in due
course, to assess a maximum service charge of twenty dollars
against the maker for a dishonored check.

     The Retail Merchants of Hawaii presented testimony in
support of the measure.  Kauai Credit Adjusters, Ltd., Select
Consulting Service, Hawaiian Collectors Association, Inc., and an
individual, though not present at the hearing, submitted
testimony in support of the measure. 

     The Department of Commerce and Consumer Affairs presented
testimony in opposition to the measure. 

     Your Committee finds that merchants and other businesses
should be able to assess a fair charge against a person who makes
payment with a bad check in order to recover their administrative
costs in attempting to collect on the check.  This measure
establishes a maximum $20 service fee, thereby protecting
consumers from being assessed exorbitant or unreasonable fees. 
 
     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to

 
a                                                     HB936 HD2
                                   STAND. COM. REP. NO. 1083
                                   Page 2


this report, your Committee is in accord with the intent and
purpose of H.B. No. 936, H.D. 2, and recommends that it pass
Second Reading and be referred to the Committee on Judiciary.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     HB936 HD2