Amends Act 146, Session Laws of Hawaii 1999, to delete its "drop dead" provision and to authorize a higher limit of deferred deposit transactions.

A BILL FOR AN ACT

SECTION 1. Act 146, Session Laws of Hawaii 1999, section 1, is amended by amending subsection (d) of section -4, Hawaii Revised Statutes, to read as follows:

"(d) [A check casher shall not enter into an agreement for deferred deposit with a customer during the period of time that an earlier agreement for a deferred deposit for the same customer is in effect.] A deferred deposit transaction shall not be repaid, refinanced, or consolidated by or with the proceeds of another deferred deposit transaction. Customers may write deferred deposit checks up to an aggregate maximum amount of $600; provided that the maximum amount of a single deferred deposit transaction shall not exceed $300."

SECTION 2. Act 146, Session Laws of Hawaii 1999, section 1, is amended by amending subsection (e) of section    -4, Hawaii Revised Statutes, to read as follows:

"(e) A check casher who enters into a deferred deposit agreement and accepts a check passed on insufficient funds, or any assignee of that check casher, shall not be entitled to recover damages in any action brought pursuant to or governed by chapter 490. Instead, the check casher may charge and recover a fee for the return of a dishonored check in an amount not greater than [$20.] $35, and may add a collection fee of up to $40 to the unpaid balance fifteen days after the customer has been notified that a check has been returned unpaid."

SECTION 3. Act 146, Session Laws of Hawaii 1999, is amended by amending section 2 to read as follows:

"SECTION 2. This Act shall take effect on July 1, 1999[, and shall be repealed on July 1, 2001]."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.