STAND. COM. REP. NO. 1543

                                   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 Judiciary, 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 $20 against the
maker for a dishonored check.

     Testimony in support of this measure was submitted by
Legislative Information Services of Hawaii, Credit Associates of
Maui, Ltd., Pacific Board of Trade, Inc., Pacific Collections,
VeriCheck, Hawaiian Collectors Association, Inc., Select
Consulting Service, the Retail Merchants of Hawaii, Honolulu
Collection Corporation, and a concerned individual.  The
Department of Commerce and Consumer Affairs submitted testimony
in opposition to this measure.

     Your Committee finds that because merchants and businesses
incur administrative costs in attempting to collect a dishonored
check, they should be able to assess a charge against the person
who wrote the bad check, in order to recover this cost.  Your
Committee believes that a service charge capped at $20 ensures an
equitable and reasonable charge for the consumers' protection.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your

 
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                                   STAND. COM. REP. NO. 1543
                                   Page 2


Committee is in accord with the intent and purpose of H.B.
No. 936, H.D. 2, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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