STAND. COM. REP. NO. 521-00

                                 Honolulu, Hawaii
                                                   , 2000

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




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

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2017 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to allow out-of-state collection
agencies to collect debts from debtors residing in Hawaii after
satisfying a minimal number of requirements.  It creates what is
referred to as an "open border" law for out-of-state collection
agencies.

     Credit Associates of Maui, Ltd., the Doctors Business
Bureau, Honolulu Collection Corporation, State Wide Collections,
CredGuard Corporation, Impact Financial Services, MEDCAH, Inc.,
Collection Agency of Hawaii, and a private attorney supported the
general intent and purpose of the bill and the amendments
submitted by the Department of Commerce and Consumer Affairs
(DCCA), with the exception of a proposed $25,000 bond requirement
for out-of-state collection agencies.  The Hawaiian Collectors
Association supported the intent and purpose of the bill but
offered amendments.  DCCA opposed the measure but offered
amendments.

     Upon further consideration, your Committee agrees with the
amendments proposed by DCCA and the Hawaiian Collectors
Association and has amended the bill by:


 
 
 
                                 STAND. COM. REP. NO. 521-00
                                 Page 2

 
     (1)  Changing the language involving the bond amount from
          $25,000 to "the maintenance of a bond in the amount
          required by the home state"; and

     (2)  Creating a new section in Chapter 443B, Hawaii Revised
          Statutes, which outlines the parameters for exemption
          of an out-of-state collection agency.  

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2017, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2017, H.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   RON MENOR, Chair