CONFERENCE COMMITTEE REPORT NO. 36

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 2017
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 2017, H.D. 1, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO COLLECTION AGENCIES,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to establish an "open border"
for out-of-state collection agencies in the form of an exemption
from certain State regulations, that include the requirements
that collection agencies register, and maintain a bond and an
active business office in the State.  Under this measure, the
Department of Commerce and Consumer Affairs may grant an
exemption to an out-of-state collection agency that applies for
the exemption and:

     (1) Is licensed or registered, and regulated by another
         state that provides a similar "open border" exemption;


 
 
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     (2) Is in good standing with the laws of its state; and

     (3) Conducts activities in Hawaii limited to the collection
         of debts:

         (A) On behalf of an out-of-state client; and

         (B) Using interstate communication methods such as
             telephone, facsimile, or mail.

     Once an out-of-state collection agency is granted an
exemption, it remains subject to state laws prohibiting unfair,
deceptive, unreasonable, abusive, and fraudulent activity.

     Your Committee on Conference finds that this measure will
benefit the bill collection industry by recognizing the growing
number of creditors conducting business on a national scale, and
the increasingly intrastate nature of the collection business.
The bill does so by removing unnecessary regulatory requirements
that duplicate consumer protections under other state laws and
the federal Fair Debt Collection Practices Act, and that would
otherwise impede legitimate bill collection activities by both
out-of-state and in-state collection agencies.

     Your Committee on Conference has amended this measure by:

     (1) Providing that an exempt out-of-state collection agency
         will also remain subject to the statutory section
         prohibiting collection of attorney's or collection fees
         from debtors, a section inadvertently omitted when the
         list of applicable statutory sections was added to this
         bill; and

     (2) Making technical, nonsubstantive amendments for purposes
         of clarity, consistency, and style.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 2017, H.D. 1, S.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 2017, H.D. 1, S.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE        ON THE PART OF THE HOUSE
                                   

 
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______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       RON MENOR, Chair




______________________________
BRIAN KANNO, Co-Chair